The Harsh Truth About This Cycle: Why Altcoins Have Failed to Pump and What to Do Now

READ URGENTLY 🚨

Hello, and welcome back to the Wealth Vault. The market has recently been rough, and many investors are already giving up. In today’s edition, I want to break down why this cycle hasn’t played out the way we expected. Can things turn around any soon? What’s the best approach in times like these?

Specifically, I’ll dive into:

💎Market Update (Bitcoin + Ethereum)

💎Why Altcoin Season Never Happened

💎How to Navigate the Current Market

💎Sonic Ecosystem Guide

Let’s Get Into It ⤵️

💎Market Update

Bitcoin

Bitcoin has been moving slightly downward ever since it hitting $109,000 All-Time Highs. After bouncing around the $90,000-$100,000 region for weeks, yesterday BTC broke down and now hovers around $88k. This level ($89,000 to $92,000) coincidentally happens to be the next support zone, and an important one.

If Bitcoin breaks below this range, things could get ugly fast. We could see a further drop to the $70,000–$75,000 zone based on the next major support level. That doesn’t mean the bull market is over, but it would signal another brutal selloff before any potential recovery.

Ethereum

Like Bitcoin, Ethereum is also approaching a key decision zone. Breaking out below the $2000-$2200 zone would confirm a wider downtrend and drag other altcoins down with it.

My General Market View

The market currently lacks a north star. There are no major bullish catalysts, no strong narratives, and no real reason for buyers to step in. This has left short sellers fully in control.

So, what could turn this around? A macro event, a Bitcoin rally, an equities pump, or even just seller exhaustion. We’ve seen hints of exhaustion recently, but not enough to shift the trend. Most of the action right now comes from derivatives trading, short squeezes causing quick pumps, but there’s no sustained spot-buying, which is crucial for real momentum.

Until demand returns, Bitcoin and the wider market will keep chopping sideways. There are also strong signals of a market-wide recession by Q2 this year. This would mean a sharp correction in stocks, and Bitcoin might follow with short-term downside. For now, just sit on your stablecoins or have the biggest portion of your portfolio in Bitcoin over altcoins.

💎Why Altcoin Season Never Happened

Altcoin season kicked off briefly in November, but instead of running for the usual 230 days, it died after just four days. Two key factors played a role in this:

• Pump.fun

• Bitcoin ETFs

PumpFun

PumpFun created a lot of dispersion in the altcoin market, promoting a hyper-gambling culture, where a few bad actors scam billions from retail traders. And this hasn’t been limited to smaller meme coin launches. It has extended to celebrity-backed tokens like $TRUMP, $MELANIA, and $LIBRA. The real issue with these high-risk bets is that once the money exits, it’s gone for good, creating a net outflow from the market.

Bitcoin ETF effect

While ETFs are net bullish for Bitcoin adoption, they’re actually bad for traditional altcoin season dynamics. Historically, profits flowed from Bitcoin → Ethereum → major altcoins → mid-caps → small caps. However, this time that cycle got skipped because retail traders either put their money in ETFs and forgot about it or went straight to meme coin gambling.

The result has been an altcoin market that looks nothing like past cycles. If you weren’t buying the 2024 summer dip and selling in November, you probably didn’t make much money. Narratives have no staying power, meaning the window to exit profitably is much smaller. Essentially, this cycle has favored traders over long-term holders.

Currently, there is so much anger in the space, most of it not from the huge financial losses, but the loss of hope. Losing money hurts, but the idea that you were so close to life-changing gains, only to watch that opportunity slip away, is even worse. And that’s why emotions are running high right now. We might just be in the anger phase of the market cycle.

💎How to Navigate the Current Market