The Truth About the Crypto World: Market Makers Shake Out Weak Hands, Not Your Tokens.


Having been in the crypto scene for years, it's common for retail investors to curse "the whales" whenever prices drop, believing that the market makers are targeting their small holdings.
This is actually a huge misunderstanding. Market makers shaking out weak hands is not about stealing retail investors' tokens, but carefully planning to boost the price later and smoothly exit their positions.
Here's a practical example with a small-cap coin: The initial price is $1.30, with retail investors holding 70%. The institution pre-accumulates 3.6 million coins but delays pushing the price up. The reason is simple: a direct, aggressive rally to $1.60 would trigger a wave of retail panic selling, making it impossible for the institution's funds to absorb the sell-off, risking a sudden crash.
Standard market maker shake-out involves three steps. The first step is a slow, frustrating decline, dropping 2%-3% daily with low trading volume and no news to stimulate buying. Retail investors panic and start selling, while the main force quietly accumulates at low prices; the second step is a sharp drop to lure in short-sellers, quickly hitting a bottom, then rebounding fast to tempt retail investors to buy the dip, only to break below support again, trapping those who bought the bottom; the third step is emotional pressure, deliberately spreading negative rumors, amplifying market panic, and forcing losing retail investors to sell at a loss.
The essence of shake-out is to swap tokens: shake out short-term investors who lack conviction, replacing them with more committed holders, raising the average holding cost, and greatly reducing the selling pressure during subsequent rallies.
Don't blindly hate on declines; a sharp drop isn't necessarily a market crash. Understanding the main force's shake-out logic helps you stay calm amid short-term volatility. Many sudden deep drops are often prelude signals before a market move.
I don't play tricks; if you want to avoid pitfalls and steadily profit, don't walk alone in the crypto world. Keep up with the rhythm $BTC .
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GateUser-6319729f
· 48m ago
So, a sharp decline followed by a rebound and then breaking below is the real killer move, fully buying the dip.
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NightFlightPaperCrane
· 1h ago
This three-step wash-trading play is indeed a classic—the slow, grinding downtrend is the worst part; many people end up cutting/closing out at the floor right here.
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OwlMarketMonitoringLamp
· 1h ago
Raising the holding cost naturally reduces selling pressure; this logic is straightforward.
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GateUser-656cc6e4
· 2h ago
$BTC Followed, next time during the shakeout, try not to get shaken out.
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FarmingNoSleep
· 2h ago
Got it, the big players don't care about my small potatoes at all; what they want is the chip structure.
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