Bitcoin's DOGE moment: Wall Street is quietly buying up your retirement funds

Author: Udi Wertheimer

Compiled by: Shenchao TechFlow

I believe Bitcoin is entering a developmental stage that we have never seen before.

I have been trying to persuade people in the cryptocurrency circle. But they don't understand.

I finally found an example that they can understand.

Please read this article in full. It may help your family retire.

If my judgment is correct, Bitcoin is currently in the final stage of a generational shift.

Many (if not most) of the old large holders have exited this asset. They sold at what they believed was the peak (around $100,000) and have been replaced by new holders.

This rotation is very rare and difficult to achieve. But once successful - I believe it has succeeded - a previously unimaginable multiple increase will follow.

But you don't have to imagine what it would be like. Because it has been proven that this situation has happened before.

The Inspiration of Dogecoin

Today, Dogecoin is known as the king of Memecoins, a Meme that everyone dreams of replicating. But few people understand what really happened, how Dogecoin achieved its legendary Meme status, and how unimaginable the entire process was.

Since the creation of Dogecoin in 2013, it has been viewed as a joke in the crypto community. Experienced altcoin traders believe that the way to play Dogecoin is to accumulate it quietly for a few months, then sell it to newcomers at 5-10 times the profit whenever they appear every few years, and then start accumulating again during the next quiet period. This cycle repeats.

They have gone through multiple cycles, buying and selling Dogecoin for less than a cent, making money from newcomers.

But on April 2, 2019, some crazy things happened.

Elon Musk, the then CEO of Tesla and SpaceX, wrote on Twitter: "Dogecoin might be my favorite cryptocurrency. It's pretty cool."

Under the influence of this message, Dogecoin rose by 50%, from 0.24 cents to 0.36 cents (note that it is cents, not dollars).

A rise of 1.5 times in one day is quite impressive, right?

Wrong. This isn't anything at all. Dogecoin is about to rise another 200 times from there, almost surpassing Ethereum.

But in July 2019, existing Dogecoin holders could not imagine such a future. Dogecoin rose from $0.0025 to nearly $1 in just a few years?? That's ridiculous. It's impossible.

This is a huge event, and cryptocurrency natives believe they know this is a huge event, but they seriously underestimate it.

So after the 50% increase, they prayed to Satoshi Nakamoto, thanking him for getting Elon Musk to promote Dogecoin, and then they began to sell.

Their choice was correct for a short period of time.

The old holders have been selling every time there is a rise for most of the year, and they feel quite good about themselves as Dogecoin continuously fails to break through.

But beneath the surface, some things are happening. After the outbreak of the COVID-19 pandemic, the public realized that they could sit at home and try to short GME on Robinhood, and some of them noticed that Robinhood also offered cryptocurrency trading.

As early as 2020, Robinhood only listed 7 cryptocurrencies, the old generation BTC, the tech-savvy ETH, and then some awkward coins like BCH and ETC. The only interesting and cool coin on Robinhood was DOGE.

The army of Robinhood meme traders saw this opportunity and launched the popular TikTok trend known as the "Dogecoin Challenge."

Encourage users to share their Robinhood account screenshots, showcasing the Dogecoin they purchased. This trend is exploding. Everyone is buying.

Just some TikTok users, nothing big...

But Crypto Twitter didn't notice.

In 2020, cryptocurrency natives hardly paid attention to Robinhood or TikTok anymore. Most old Dogecoin holders had no idea what was happening. Therefore, whenever the price went up a little, they would sell.

For them, Dogecoin is just a stupid joke; you sell during a bull market and buy during a bear market to make some extra money.

If you look at the chart, you will believe this. For most of 2020, the price did not fluctuate much. Everyone has been trained to believe that "when Elon tweets, we will only go up by 20%" because the old holders are always there to sell and push down the price.

They have no faith.

But new holders do have confidence.

Beneath the surface, young people on TikTok have been buying in.

The cryptocurrency Twitter sphere is largely kept in the dark. Charts make them believe that nothing has happened.

By January 2021, Dogecoin sellers had finally run out of tokens.

In just two weeks, the price of Dogecoin skyrocketed from $0.008 to $0.08, increasing tenfold within that period, and its market capitalization soared from $1 billion to $10 billion.

Everyone on the timeline has gone crazy. The group chat exploded. The old whales are calling each other in the middle of the night. Did you see it????

"Did you see this?!?!" The first Dogecoin cognitive collapse.

It is hard to express in words what a huge cognitive shock this is. Most crypto natives have completely collapsed because almost everyone has owned Dogecoin at some point in the past 7 years, and almost everyone has sold it. They hardly paid attention to TikTok trends and have no idea that this wave of market activity has been brewing for months.

But their biggest mistake has yet to come.

Eventually realizing that the entire retail world had fallen in love with Dogecoin, some savvy cryptocurrency traders began to buy back. There were many posts on the timeline boasting about how they quickly doubled their money using Dogecoin. They were all very proud of themselves.

But none of them expected that this entire large-scale action was just a warm-up.

Their thoughts are still stuck on the old Dogecoin price. Dogecoin is a coin worth less than a cent. Everyone knows this. If it briefly exceeds one cent, that's a bubble, and we use it to accumulate more stablecoins and then leave.

But the new holders know nothing about the old price.

Young people on TikTok and Robinhood have no idea about the years of suffering endured by the old Dogecoin holders. In fact, when they zoom out on the Robinhood charts, they can't even see the historical price trends. To them, it's a blank slate, and "Dogecoin to one dollar" seems completely reasonable.

As a result, with the old holders rotating out, the new holders had no concept of the old low prices, and after letting CT believe that the market had ended between February and April, Dogecoin surged again by 10 times, reaching an ultimate peak of about $0.70.

What happens when the seller's tokens run out. Illustrated

This is 200 times higher than the peak of the first Elon market in 2019. In just 2 years. TikTok users cashed out a lot, while CT missed the entire market. The best CT traders might have locked in a 3x return in the middle (and ensured to boast about it for months on the timeline).

The same thing is happening to Bitcoin today.

Indeed, today's Bitcoin is much larger than Dogecoin was at that time. But there are also many more participants. What we have are not retail traders from Robinhood and TikTok users, but institutions, ETFs, and Bitcoin fund management companies like MSTR. What we have is not Elon promoting Dogecoin (by the way, he wasn't as famous in 2019 as he is now), but the president of the free world promoting Bitcoin. Perhaps we have even— or will soon have— countries purchasing Bitcoin.

Various institutions have been frantically purchasing Bitcoin from old holders: those indifferent cryptocurrency natives. The cryptocurrency natives have no idea how traditional capital markets operate. In fact, they mock them. They do not want to know. So they completely missed out and continue to sell at around $100,000, which is laughably high for them.

But new buyers can't even see this number. $IBIT, BlackRock Bitcoin ETF, is priced at about $70. Its chart starts from the ETF listing date (January 2024), when the price was $30. It only rose by $40! That's nothing, why isn't it $700?

This is the chart that IBIT holders see.

Companies like Saylor's MSTR, which are Bitcoin treasury companies, don't even consider the unit price of the underlying asset. They measure purchases in terms of dollar value. "Last week we deployed $500 million." They are completely insensitive to the price of Bitcoin. They just put in as many dollars as possible. (By the way, MSTR is likely to continue doing this at an increasingly rapid pace. If you're sitting there waiting for Saylor to get liquidated, that means you don't understand what's happening. Do your research. This won't happen in the short term.)

CT and cryptocurrency natives believe that after the ETF approval and Trump's victory, Bitcoin's price will rise from $50,000 to $100,000, and that’s the whole trend. I mean, it has stopped rising!

But the fact is that it just takes time to rotate the assets out of the hands of the old holders. The real market hasn't even started yet.

Look around

Most of the old Bitcoin extremists are nowhere to be found. Where are they? Have they vanished?

Most of them sold out. They bought houses and boats, and then they left.

Where are cryptocurrency investors? They switched to ETH and then wrote articles about flipping and staking yields.

What about the young speculators? They never have Bitcoin; they are all trading worthless air memecoins. They dream of catching up to the next Dogecoin, not realizing that the next Dogecoin is actually Bitcoin.

No one is left. Wall Street has bought up everyone's Bitcoin. And they have just begun.

So what will happen next?

When you read this, you are unwilling to believe. You are likely to have a serious lack of understanding of Bitcoin. You know I have correctly predicted Bitcoin at every step, every day, for months now, which is why you are reluctantly reading this article, but you still don't want to believe.

So if we think back to the story of Dogecoin, we are now at the position after Elon’s first tweet, after the TikTok "Dogecoin Challenge", but before the first 10x surge in January 2021.

In other words, the price of Bitcoin is positioned after the ETF, after Saylor accelerated it, and after events like Trump's presidency. But its price is also positioned before anyone believes that "this time it's really different" and before anyone realizes that "the sellers have sold out of BTC."

Bitcoin is bigger, so we might not see a 10x increase immediately, but as I mentioned before, I am very confident that we will see $400,000 by the end of this year. This target might be too conservative.

You still think this is ridiculous. But the old holders have already exited. We have no reason not to have rapid multiples again.

Moreover, this is just the first wave of the market. I believe that similar to DOGE, after the first cognitive collapse, there will be a larger, faster, and more violent cognitive collapse. After the first target of 400,000, there will be another cognitive collapse of 10 times or more. This will happen when the whole world starts to believe (remember when every young person in the world was talking about Dogecoin a month ago?). But I don't want to talk too much about that right now. That will be the second cognitive collapse. That will be a matter for later.

We are entering the first cognitive collapse.

What does this mean to you?

First of all, you can actually retire on 1 Bitcoin. If you have the chance to get 1 Bitcoin, do it now. Put it aside and forget about it. I'm not sure you'll have such an opportunity again.

Secondly, after you purchase your first Bitcoin, continue to buy Bitcoin. Keep adding. This is what Wall Street is doing. Do you really think you are smarter than Wall Street? They have already outpaced you for the past 2 years.

Third, now is not the time to wait for the price to drop. Who will sell? The old holders are already out. They can't sell the coins to you; they have already sold them.

Oh, there is a fourth one...

The fate of altcoins

Your altcoins are done for. There will always be some coins performing well everywhere, and if you really pay attention, you might catch them. Quick in and out, thanks for your scam. But most altcoins will not be able to keep up with the massive funds flowing into Bitcoin.

This won't happen immediately. But if Bitcoin rises 50 to 100 times in a relatively short period, then no currency can keep up, not even income-backed currencies, unless the income also increases by 50 times, which I think is possible for early-stage companies. So if you really want to, you can still bet on early-stage companies.

Interestingly, some large memecoin projects dream of replicating the success of Dogecoin without understanding the true reasons for its success. They think that if they replicate certain elements, like being listed on Robinhood (but this time alongside 500 other tokens) or getting Elon to mention it (but that’s not cool anymore, he’s been doing that all along), or making some TikTok videos (far from the zeitgeist of the COVID era), they can succeed. But those pieces just don't match. Clearly, Bitcoin is a better story.

And the biggest loser in this cycle may be Ethereum. MSTR's market value could surpass that of Ethereum. Ethereum will truly fulfill the prophecy: "no second best," as it will be replaced by MSTR in the second position. Ethereum holders are also starting to establish treasury companies, which is nice, but they won't be able to catch up in this cycle.

You should be able to easily see the problem, the biggest Ethereum bulls are aiming for the pathetic $4000 target on the timeline, while embarrassing figures like sassal and eric.eth continue to post garbage content every day. The issue is that the old holders are still around. So yes, ETH will perform well here and there, but only in short bursts, and overall, ETH/BTC will continue to set lower highs as the old holders keep selling off with every small uptick.

If Lubin, Tom Lee, and their friends continue to buy for many years, then perhaps the next cycle will finally bring a real market for Ethereum. I don't think this cycle will happen.

Wall Street is buying up all the Bitcoin.

Please buy some Bitcoin before it is completely divided.

Thank you for your attention to this matter!