Many investors believe that when people “sell Bitcoin”, they immediately exit into dollars or euros.
In reality, this almost never happens.
The real exit path usually looks like this:
BTC → ALTCOIN → USDT / USDC → (sometimes) FIAT
Here is why this matters.
1. Most selling stays inside the crypto system
When someone sells:
• BTC → ETH
• BTC → FET
• BTC → SHIB
No real money leaves the market.
This is only:
one crypto exchanged for another
risk transferred, not removed
No dollars, no euros, no banks involved.
This creates an illusion of strong liquidity, but it is only internal.
2. Altcoins are used as a liquidity buffer
Large holders rarely sell BTC directly into stablecoins.
Instead they:
• Sell BTC into altcoins (high liquidity, less visible)
• Let altcoins pump temporarily
• Then convert altcoins into USDT / USDC
This allows them to:
reduce impact on Bitcoin price
distribute selling pressure
exit progressively without crashing the market too early
Altcoins often act as a liquidity buffer.
3. The real danger is not BTC selling — it is stablecoin conversion
The real stress begins when people try to convert:
ALT → USDT / USDC → USD / EUR (bank)
At that moment:
• Stablecoin reserves are tested
• Banks slow down or block transfers
• Withdrawals are limited
Confidence becomes fragile
If many investors try to exit to fiat at the same time:
• Liquidity disappears
• Prices collapse quickly
Exchanges may freeze withdrawals
This is where systemic risk appears.
4. Key conclusion
Crypto markets remain stable because:
Most investors never truly leave the system.
They rotate:
• BTC → alt
• alt → stable
• stable → alt / BTC
But very few actually convert into real fiat money.
The market is liquid as long as money does not try to leave the casino.
Final message
Bitcoin and altcoins are highly liquid inside crypto
Real fiat liquidity is limited
Massive exits to banks would cause violent price collapses
Understanding this mechanism is essential for proper risk management.
That’s why Shiba, and about 80% of altcoins, are no longer profitable.
You think it’s a pump, but in reality it’s just Bitcoin exits flowing into altcoins.
