I noticed an interesting pattern in the crypto market that resembles the classic Matthew Effect. It’s when those who already have capital and reputation gain even more advantages, while others fall behind.

The Matthew Effect was first described by American sociologist Robert Merton in 1968. The name is borrowed from the Bible, which says: "For to everyone who has, more will be given, and he will have an abundance; but from the one who has not, even what he has will be taken away." In simple terms, it means the winner takes all.

You constantly see this in crypto. Large players accumulate liquidity, information, investments. Small traders fight for crumbs. It’s clear now: BTC is trading around 80.44K (down 1.39% yesterday), ETH at 2.31K (down 2.23%), and even some altcoins like that major asset at 647.10 show a slight increase (+0.06%).

But the Matthew Effect isn’t just about price. It also applies to access to information, capital, and networks. Those who have been in the game for a long time have an advantage. Those just starting out need to be much smarter and luckier to catch up.

The Matthew Effect in finance is especially harsh. If you already hold large positions, you can afford to wait, average down, and not panic. If you have small capital, every percentage point matters. That’s the essence of this phenomenon.

It’s important to keep this in mind when planning your market strategy. The Matthew Effect won’t disappear, but understanding it works in your favor.