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Blockchain Basement

URGENT! Altcoin Apocalypse Incoming (Protect Your Portfolio NOW)

Wednesday, 3 June 2026 · 4 min read · Listen to the episode ↗

Asian-based market makers are reportedly coordinating with crypto projects to artificially inflate token prices before dumping on retail, with insiders in schemes like Rave DAO controlling over 98 percent of spot supply and tokens like Edge dropping roughly 70 percent in a single candle.

Active market makers, mostly based in China and Asia, are coordinating with crypto projects to artificially pump token prices before dumping on retail buyers. The arrangement gives market makers access to a project's token supply in exchange for capital used to drive prices to extreme highs. Tokens chosen for these schemes tend to have perpetual futures listings on Binance but very few spot listings, giving insiders control over circulating supply. Rave DAO insiders were estimated to control over 98 percent of their token's spot supply. Tokens including lab, rave, and momentum all experienced massive run-ups followed by severe collapses. Edge token dropped approximately 70 percent in a single candle, falling from around 1 dollar 40 to approximately 62 cents, and the host stated he is too scared to buy Edge token or use the Edge X platform given the severity of the collapse.

Bitcoin was trading at approximately 66000 dollars at the time of recording, with a recent wick bringing it down to approximately 60000 flat. Bitcoin ETFs saw approximately 520 million dollars in outflows on one day and roughly another half billion the day prior, running for approximately 12 consecutive days described as the largest outflow streak on record. USDT dominance is forming what one speaker called a flag pattern described as the kiss of death for Bitcoin, with a target of 10.5 percent USDT dominance before Bitcoin bottoms, compared to a current high being swept around 9.4 percent. Bitcoin money flow and momentum waves on the Market Cipher weekly have been decreasing since the first high at 110000 dollars. Both altcoin and Bitcoin capital are flowing into stablecoins rather than rotating between assets.

Order blocks from Binance and Wintermute are sitting at approximately 60000 flat on the order books, and speakers noted these can be cancelled and flipped to market sell at any time, potentially cascading price downward. One speaker does not believe Bitcoin will hold 60000 and expects it to be melted through rather than serving as strong support. A dead cat bounce of approximately 3 to 5 percent is expected before Bitcoin rolls over further. The first macro fib line of defense sits between 54300 and 57900 dollars, with a 0.65 fib at 54344. The primary bottom target is 41000 to 46000 dollars, consistent with typical 50 percent pullbacks from this level and described as very similar to 2022 price action. A bear flag on Bitcoin, if it plays out from the breakdown point, targets the mid to upper 40000 range. One speaker plans to buy 10 to 15 Bitcoin if price reaches the 40s.

If Bitcoin bottoms at 40000 dollars, the blow-off top in the four-year cycle would reach approximately 160000 to 170000 dollars. If Bitcoin bottoms at 55000 to 60000 dollars, the diminished gains equation brings the top to approximately 200000 to 260000 dollars. The four-year cycle bottom is expected somewhere between Q4 2026 and Q1 2027, followed by accumulation and a rally into late 2027 through 2029. One speaker acknowledged it is unknown whether 60000 was already the bottom and stated that if Bitcoin maintains 60000 through the summer and into Q4 without a new bottom, the bearish bias toward 40000 would be abandoned. The average cost basis for current Bitcoin holders is estimated around 50000 to 60000 dollars, meaning many holders are about to go negative again, and true capitulation has not yet occurred.

MicroStrategy's Michael Saylor has already been observed selling, and the speaker anticipates miner capitulation next given that Bitcoin mining companies are described as over-leveraged. The speaker frames miner capitulation as an expected cycle catalyst and recommends buying Bitcoin at anything sub 60000 dollars as reasonable accumulation territory while noting exposure should be built gradually. The speaker plans to concentrate only on Bitcoin, Ethereum, Solana, Hyperliquid, Tron, and BNB rather than taking risk on smaller altcoins.

Solana topped May app revenue at 91 million dollars, beating Hyperliquid at 53 million dollars and Ethereum at 52 million dollars. Hyperliquid has risen to seventh place among all non-stablecoin crypto projects by market cap in a very short period of time. One speaker plans to begin dollar-cost averaging into Hyperliquid, citing its development activity, partnerships, bear market profitability, and expansion into prediction markets, options, commodities, and stocks. A caveat was raised that Hyperliquid entering lending could destroy Aave, and listeners were warned to be cautious with DeFi exposure as a result. The Ethereum buy range cited is 1320 to 1500 dollars, with a note that Ethereum has a history of extreme capitulations that could push it toward 980 dollars.

Tap Tools, described as a major part of the Cardano ecosystem used to find up-and-coming projects, is shutting down, and Hoss Key dot io is also shutting down after four years of supporting Cardano. The speakers stated they will not touch Avalanche or Cardano and are limiting new investment only to assets with an ETF attached. The current market is characterized as an institutional bull run followed by an institutional bear market, with crypto lacking a driving narrative. AI and stock market IPOs are capturing retail attention and liquidity away from crypto. Chasing new projects to recover losses is described as how people typically get destroyed in a bear market.

This summary was generated from the episode transcript and can contain mistakes.