HodlX Guest Post Submit Your Post Today, the cryptocurrency market resembles a theatrical performance in which insiders write the script and unsuspecting retail investors play the roles of the extras. While altcoins are falling, meme coins turn into minefields and liquidity remains locked in exchange-traded funds (ETFs), institutions are accumulating Bitcoin but aren’t injecting free Tether and fiat into other assets. Behind all of this lies a new wave of manipulations involving Solana cartels, insider-driven pump-and-dump schemes with worthless tokens, the absurdity of artificial intelligence (AI) agent trading and the epic dump of the TRUMP , MELANIA , LIBRA and BROCCOLI tokens. These patterns highlight the ongoing challenges of market transparency and stability, making it increasingly difficult for investors to navigate the space with confidence. This article contains only a market overview and does not provide any financial recommendations. The current market situation The market has been moving in a pretty expected way. BTC bounced back quickly but couldn’t reach a new all-time high, so it started slowing down again. Normally, if Bitcoin’s dominance dropped, altcoins might have had a chance to rise. But aside from a few short-lived spikes – like ETH trying to break out – there hasn’t been any major shift. As a result, altcoins look so weak that memes about their collapse are spreading across the industry, creating the impression that not only professionals but even beginners have lost faith in an altseason. Most investors’ portfolios are deeply in the red. Adding to the uncertainty is the geopolitical situation. Institutional investors remain on edge, fearing that the world is on the brink of a major conflict. This has driven large players to actively buy gold, which has been setting new ATHs (all-time highs) over the past two weeks. This trend indicates that capital is flowing out of risky assets, including crypto, and into safe-haven assets like precious metals. The liquidity crisis The key issue now is a real liquidity crisis. High-profile scams, mass liquidations and hype-driven sectors – memecoins, AI tokens, etc. – h ave absorbed enormous amounts of capital, concentrating money in the hands of major players. Here’s what we see in the market. Liquidity frozen in ETFs – A significant portion of capital is locked in spot ETFs, limiting its circulation in spot markets. Retail exhaustion and regulatory pullbacks – A series of sharp sell-offs and scams, such as the recent incidents with TRUMP and Argentina’s presidential token LIBRA (which saw over $250 million lost), have severely damaged trust and reduced market activity. Capital outflows to traditional assets – While crypto faces a crisis of confidence, gold is setting new ATHs, and the stock market continues to attract institutional investors. Ongoing liquidity squeeze – Altcoins increasingly fail to meet expectations, and instead of a new growth cycle, we see a systematic transfer of retail investors’ funds into the hands of large players. Memecoins and AI tokens – After explosive growth in 2023, they are now experiencing brutal crashes, with price drops of over 90% becoming the norm. Amid this, market stability is weakening, especially in the DeFi sector, which critically depends on liquidity. Systematic liquidity manipulation in the memecoin market Just as the dust was settling from the LIBRA and KSA scams, the market faced another case of speculative manipulation, this time with the Broccoli token. Named after CZ’s dog, the Broccoli token became yet another example of how crypto market manipulation continues to enrich insiders while leaving retail investors with losses, further eroding trust in the space. Key stages of the scheme Artificial hype creation – Limited liquidity and aggressive marketing fueled a rapid price surge. Peak pump phase – More traders joined in, attracted by rising prices and social media buzz. Sharp collapse – Insiders dumped their holdings, took profits and crashed the token’s price. This case confirms that the market remains highly vulnerable to speculative strategies by large players, who exploit hype cycles to generate short-term price movements. Conclusion The market is now balancing between two opposing forces. On one hand, it has been drained by mass scams, capital lock-ups in ETFs, geopolitical instability and overall industry fatigue from constant failures and fraudulent projects. On the other hand, despite all the negative factors, the crypto market has been through similar phases before. Large players are reallocating capital, and while institutions remain cautious, they aren’t exiting crypto entirely. However, if the current liquidity crisis drags on, we could see another wave of panic, especially if arrests and investigations around Libra escalate. Yaroslav Kalynychenko is the head of marketing at Generis Web3 Agency and an expert in promoting crypto, fintech and innovative digital solutions. Check Latest Headlines on HodlX Follow Us on Twitter Facebook Telegram Check out the Latest Industry Announcements Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. 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