The current situation is due to three main reasons: first, the liquidity impact from the economic cycle; second, countless new projects dividing up the already insufficient liquidity; and third, the Trump family and other big players taking money out of the crypto space and leaving. Once you understand the reasons, it’s easy to see the current state of the crypto market. Almost all the remaining liquidity is concentrated in BTC. Institutions and whales only dare to park their funds in BTC, and secondarily in ETH. That’s why BTC has been the best performer in the past two years, while ETH has held its ground without major sell-offs. As for altcoins, they’re just facing relentless declines. So, the market’s future depends on the return of liquidity. The Fed has shifted from balance sheet reduction to “technical balance sheet expansion,” ending the asset reduction plan that started in 2022. With bank reserves hitting the “adequate level” floor, they’ve started purchasing short-term Treasury bills to maintain ample liquidity. This behavior essentially qualifies as “balance sheet expansion.” Of course, the real turning point will be Powell stepping down in May 2026. However, whether most altcoins can recover even after liquidity returns remains uncertain. For this cycle, I’m only confident in placing large positions in BTC, ETH, and SOL, along with small positions in blue-chip altcoin projects that have real-world applications and solid fundamentals.