🚨 THE SAD REALITY OF ALTSEASON NO ONE WANTS TO TALK ABOUT. KEEP READING 👇

They’re bleeding because this part of the cycle is designed to break you.

Here’s what’s actually happening 🧵⬇️

1) Bitcoin dominance is quietly doing its job

When BTC dominance rises, capital concentrates
Money doesn’t leave crypto it hides in Bitcoin.

That means:
• BTC becomes the safety trade
• Alts turn into liquidity sources
• Risk compresses before it expands

This happens every single cycle before alt strength returns.

2) Tax-loss harvesting is crushing alts right now

Crypto is one of the only major asset classes down vs January 1.

Equities? Up.
Gold? Up.
Crypto? Down.

Funds are selling:
• Losing alt positions
• Crypto ETFs
• High-beta names

Not because they’re bearish but to lock in losses before year-end.

That pressure ends… when the calendar flips.

3) December liquidity is thin = exaggerated pain

Low liquidity + forced selling = ugly charts.

That’s why:
• Small sells cause big dumps
• Alts look “abandoned”
• Price action feels irrational

It’s not panic.
It’s math in a low-volume environment.

4) Liquidity works on a lag

The Fed has already started injecting liquidity again.
But markets don’t respond instantly.

Historically:
• Liquidity improves first
• BTC stabilizes next
• Alts move last

Right now we’re still in the lag phase not the breakout phase.

5) Retail is exhausted and that matters

No hype.
No leverage.
No FOMO.

That’s usually when:
• Selling pressure fades
• Volatility compresses
• Smart money waits quietly

Whales don’t buy excitement.
They buy boredom.

6) This phase always feels personal

Low volatility
Sideways Bitcoin
Alts bleeding slowly

Same setup we saw in:
• Dec 2018 → Jan 2019 bounce
• Dec 2022 → Jan 2023 rally

Not a guarantee but a pattern worth respecting.

The takeaway:

Altcoins are bleeding because:
• BTC dominance is rising
• Tax-loss selling is peaking
• Liquidity is thin
• Demand is exhausted
• Macro liquidity hasn’t flowed through yet

This isn’t capitulation.

It’s compression.

And compression phases are usually what come right before expansion.

Patience here beats emotions.

In the mean time touch grass , enjoy christmas with your family

The market will always bounce back in due time

Merry christmas family <3