The thirst for quick wealth has destroyed the cryptocurrency market in 2026

Anyone still dreaming of getting rich quickly through altcoins has missed a shocking truth: the cryptocurrency market has just gone through a brutal washout, and those seeking quick exits are only getting caught in more sophisticated traps. After in-depth conversations with major private funds and leading Market Makers, the current market picture is clearer than ever: this year is not the season for small retail investors to strike gold.

Altcoin: From Hope to Harsh Reality

Last year, interestingly, venture capital (VC) firms basically stopped attacking Web3 layer 1 projects. Now, the situation is even worse. The 1011 event (October 2025) became a surprise blow to many unlucky altcoin players. The risk-reward and loss potential for retail investors has now reached an unacceptable level.

To be clear: there is no upcoming “altcoin season.” The only exceptions are projects with truly solid infrastructure—such as stablecoin platforms, RWA (Real World Assets) solutions, or cross-chain payment technologies. However, these are projects that are almost certain not to issue tokens, or will do so in ways completely different from investor expectations.

DAT: The Financial Bubble About to Burst

The long tail of DAT (early token issuance) bubbles can no longer find genuine buyers. A close look at recent transactions shows most are in-kind token swaps—essentially internal fund transfers between parties.

The problem is clear: project developers, initial token holders, and financial advisors all favor the DAT mechanism because it allows them to raise funds quickly and make immediate profits. But for investors—whether private investors pre- or post-listing—there’s a high chance you’ll become a “harvest crop.” This is a rather ruthless but effective mechanism, and it’s thriving due to its profitability.

Post-1011 World: Deep Scars on the Market

The October 2025 washout didn’t just impact retail investors. Weekly trading volumes on major exchanges dropped widely by 20-40%. Many top Market Makers also suffered heavy damage—some even got liquidated with leverage but did not publicly disclose it. This is an unprecedented event.

Large funds are now focusing on risk management issues, and everyone needs time to adjust their strategies, recover psychologically and financially. The market needs not only to heal economic wounds but also to restore confidence after a catastrophic decline.

Survival Strategies for Three Types of Investors

The current phase is a “fearful hesitation”—completely different from two years ago when people could buy blindly. We are not yet at the “blind selling” stage at market peaks, when the entire market is driven into irrational frenzy.

If you have no position: Allocating 5-20% of your portfolio into BTC is reasonable. Currently, the BTC/gold ratio is at historic lows, especially with BTC trading around $66,900. This is a good entry point to build a long-term position.

If you are fully invested or using leverage: Reduce leverage immediately. Switch to a defensive stance. We emphasize this repeatedly: the asymmetric risk when you are already on a ticking bomb.

If you have half a position: Maintain your current stance. This is a time to practice patience, wait for opportunities to emerge rather than rushing to make decisions.

From Despair to Rationality: How Long Will the Market Heal?

In summary, the crypto market is “born in despair, grows amid hesitation.” We are currently in this hesitation phase. Those still eager for quick riches need to abandon that illusion. Maintain your current positions, preserve your financial strength, and most importantly—survive this phase intact.

The market will recover, but not today, nor a few weeks ago. Prepare for a long-term battle where patience is your best weapon.

(Note: This is only market analysis, not investment advice. Always conduct your own research before making any decisions.)