The cryptocurrency market began on a promising note, seemingly having found its ideal formula. However, this formula is not based on production, innovation, or utility. Instead, it combines leveraged funds and retail traders, resulting in disaster. The Kobeissi Letter reports that nearly 300,000 traders face liquidation of their positions daily. This staggering number reflects a grim reality: every day, individuals realize their investments have gone to waste. What is labeled as investing resembles more of a gamble, akin to playing Russian roulette, but with blockchain.

The official narrative attributes this phenomenon to traders using leverage to multiply their earnings. Unofficially, however, it resembles a form of financial addiction. One post or headline can trigger a chain reaction, experts note, particularly highlighting the impact of posts about Donald Trump. Consequently, the cryptocurrency market seems to be governed not by economic principles but rather by the tweets of a single individual.

The contrast between the official story and reality is striking. Major investors observe passively as retail traders engage in infighting. This chaos is beneficial for large players. While small traders panic and sell at rock-bottom prices, the larger investors acquire assets at a discount, later reselling them at a significant profit. This is not a market; it is a hunt where retail traders become the prey.

Analysts from The Kobeissi Letter ironically acknowledge that the long-term outlook appears positive. However, this view is only applicable to wealthy investors who can withstand any short-term downturn. For those who have invested their last dollar in cryptocurrency, this is more than a short-term risk—it is the end of the line.

Wintermute adds further complexity: the issue lies not in a lack of liquidity but rather in its redistribution. Money exists, but it flows from smaller players to larger ones. This is not a market correction but rather a financial revolution in which the cryptocurrency proletariat hands its wealth over to oligarchs.

In conclusion, the cryptocurrency market is not an investment in future success. It is a premium version of a casino, where tweets replace roulette, algorithms take the place of dealers, and happiness gives way to 300,000 liquidations each day.