This year, the main reason almost all cryptocurrencies saw 10x, 20x, maybe even 100x drops was not "all projects were bad"; it was market mechanics: liquidity flow + selling pressure.

While some of these major collapses happened suddenly without warning, others happened gradually. But in almost all cases...

New money moved to more liquid and easily hedged places instead of buying any specific coin. The BTC/ETH side became a natural magnet due to depth, accessibility, and perceived security. In altcoins, the following scenario was simultaneously present: vesting/unlock schedules, inflationary tokenomics, ecosystem incentives, and sales from project treasuries for (operations, market makers, listings, marketing). As demand weakened and supply increased, the price was crushed mathematically.

And then a few more factors added...

• Examine altcoin order books. Even small sales cause big drops; trigger stop-losses; panic selling increases; creating a “drop → more sales” cycle.
• Attempts at rallies were cut short when caught in funding and liquidation chains. Longs were liquidated and turned into spot sales; then attempts were made again, but were cut short again.
• While capital remained the same in the market, the number of coins and narratives increased. Every new launch/airdrop drained liquidity from existing altcoins; “the money stays the same, but the slices are smaller.”
• As uncertainty increased in tokens, investors became more selective. Risk premium rose; investors fled to the “least debated” side.
• Memecoin/short-term rotations weakened medium-term altcoin accumulation. People shifted from “hold” to “trade” mode.

The 2025 altcoin market was not a story market but a flow market. The flow went into BTC/ETH, while unlock + selling pressure persisted in altcoins. That’s why some gradually eroded, some collapsed suddenly; but the reason was the same: demand fell while supply increased.

Such sharp declines also create a “new supply wall.” Because as prices fall, the same amount of money can buy many more coins. Gradual accumulation at the bottom eventually held a significant portion of the circulating supply; technically, they became “large wallets.” This could mean: as the market begins to recover, it’s not because old investors’ costs are very high; quite the opposite, because those accumulating at the bottom have very low costs, early profit-taking may occur, and every rise could hit a “sell wall.” Especially if liquidity remains shallow and unlocks continue, every rally could see “new whales” distribute and push the price back down.

The 2025 crypto collapses were not just destruction, but also caused changes in ownership. What will determine the speed of future rallies is exactly this:

Will new money inflows dominate, or will the sales from low-cost large wallets?