Current market sentiment is highly similar to the night before the 2021 bull market crash, with multiple signals indicating that after the frenzy, a severe adjustment may follow. Here are key comparisons and risk warnings:

Key conclusion:

  • The market has entered a high-risk stage, especially for Meme coins and low market cap altcoins.

  • Trump-themed coins (such as $TRUMP) have surged in the short term, but long-term value is questionable, with 80% of tokens controlled by affiliated entities, posing a manipulation risk.

  • Institutional funds are still in BTC, but the inflow of funds into altcoins is limited; Matrixport reports that the altcoin market faces structural weaknesses.


The three major risks in the current market

  1. Meme coin bubble

    $TRUMP once surged 37,000% in a single day but then plummeted 82.9%, similar to the 2021 DOGE market.

    Lack of real application, purely driven by narrative; once the hype fades, it may go to zero.

  2. Market liquidity differentiation

    BTC dominance (BTC.D) remains above 60%, and funds have not rotated significantly into altcoins.

    Institutions are more focused on BTC and ETH, while altcoins rely on retail funds, making them prone to collapse.

  3. Technical overbought correction

    BTC RSI is close to 70, and it may temporarily test the $108K support level.

    Illuvium ($ILV) surged 60% in 24 hours, leading to an overbought RSI, indicating a potential short-term correction.

    How to respond? Defensive strategy recommendations

Reduce positions in Meme coins and low-quality altcoins (such as $TRUMP, $TREMP) on highs.
Core positions should include mainstream coins like BTC, ETH, SOL, etc.

Set profit-taking and stop-loss levels (e.g., consider partial profit-taking if BTC falls below $112K).
Maintain cash reserves and wait for bottom-fishing opportunities after market corrections.

Key conclusion: Bitcoin is Money, Meme Coin is Not

BTC remains a long-term store of value, while Meme coins are merely short-term speculative tools.

When the market is overheated, defense is more important than offense; avoid becoming the last buyer.

History does not repeat itself simply, but it always rhymes—2021’s lesson teaches us that after the madness, there will inevitably be chaos.

Now is not the time for greed; it’s time to consider how to preserve profits.

People are more important than anything else! If you are still wandering in confusion, take a look at @crypto Guang Ge who will guide you to seize every wave of the bull market.

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