Bitcoin is your lifeline. Since yesterday afternoon, the market maker Wintermute suddenly took action against popular meme coins — ACT plummeted 50% in one minute, while coins like BONK, TST, and MUBARAK collectively crashed, DEXE dropped over 28%, TST fell 18%, and DF dropped 17.7%. Multiple meme coins plunged simultaneously, and the entire altcoin market is in turmoil.
Many investors have found that struggling for half a year is not as good as holding Bitcoin steadily. Since January, liquidity has been consistently withdrawing from altcoins; either the manipulators have run away, or they have changed hands. Retail investors who stick to 'diamond hands' are losing badly. Institutional movements are worth paying more attention to: Tether recently bought 8,888 Bitcoins, raising its total holdings to over 92,600, equivalent to an investment of $7.8 billion. This kind of 'stablecoin giant buying the dip' operation is indirectly reassuring the market.
The ACT crash sounds the alarm: Have you set stop-losses on your altcoins? This crash is not an isolated case but a liquidity crisis affecting the entire meme sector.
ACT plummeted from $0.19 to $0.07, primarily due to market makers withdrawing funds, causing the pricing system to collapse. The most practical advice now: quickly check if you have set stop-losses on your altcoin holdings — market confidence has already dropped to freezing point. Without a new narrative, this downward trend is hard to change; we can only wait for Bitcoin to drive the momentum in the second half of the year. The withdrawal of liquidity is most visibly reflected in the outflow of holding funds. Look at that; find those coins with large holding funds that haven't increased in value. The decline of coins with large holdings is inevitable.
More and more people are starting to realize that only Bitcoin can be held for the long term. Playing around with other coins is not as good as holding onto your Bitcoin. Liquidity has been withdrawing from altcoins since January this year; the operations behind this might be market makers running away or changing hands. In any case, diamond hands are suffering big losses.
Market whispers on the eve of tariffs: What does Bitcoin's early surge reveal? Currently, the market lacks confidence, and without innovative strategies, this situation is unlikely to change anytime soon. We can only wait for Bitcoin to surge in the second half of the year. Last night, the relevant tariff policies had not yet been announced, and Bitcoin just started to surge. To some extent, the market already knows the answer; remember, the market is smarter than anyone else. Therefore, I estimate that tonight's tariff expectations are not as severe as previously speculated. We'll see; the answer will be known tomorrow. On Thursday at 3 AM, measures regarding reciprocal tariffs will be announced, and TLP will speak at that time, likely explaining some policies regarding tariffs.
Is 2025 a bull market or a bear market? Although short-term fluctuations are intense, institutions generally believe that the crypto market is still in a long bull cycle: Bitcoin ETFs continue to attract capital, Ethereum staking has reached new highs after the merger, and the new SEC chairman's appointment may accelerate the approval of ETH spot ETFs. However, retail investors need to be clear-headed: even if there is a rebound after the tariffs land in April, it will be hard for altcoins to return to their January highs — the manipulators are not out of money to pump; they are just waiting for retail investors to capitulate. For investors, the current market environment is full of opportunities, but it also comes with challenges. While positioning for long-term investments, one must also be flexible to respond to the short-term market's severe fluctuations. After all, the crypto market is always full of surprises and is never short of tests.
More practical strategies, specially prepared for spot enthusiasts and bull market coin holders! Click on my profile to follow and gain access to my bull market strategy deployment, shared for free with all fans. You need to refer, I need fans, to be the most generous bull market blogger on the internet!
