The volatile market in the crypto world often makes people anxious, but have you ever thought that behind it is actually an art of chip exchange?

When I first entered the scene, a 10% drop in my account would make me curse for half a day. I always felt that someone was watching my small amount of coins behind the scenes, deliberately opposing me. It wasn't until I experienced several cycles of bull and bear markets that I truly understood: the market manipulator's shakeout is never aimed at individuals, but is a necessary market cleanup—just like farmers till the soil before planting, and before pulling the market up, a shakeout is also necessary.
The 2018 METIS market changed my perspective completely. During that period, it fell from 1.2U down to 0.9U in a steady decline, dragging on for two months, with complaints echoing in the community. A seasoned investor cut his losses at 0.95U and proudly said he dodged a bullet. Little did he know, the chips he threw out were exactly swallowed by the market maker.
Then came the more intense move—suddenly plunging to 0.7U and quickly bouncing back, technical traders started shouting "double bottom formation." As a result, the market maker countered with a drop to 0.65U, causing chaos in the group chat. This is a combination of "shakeout" and "trap" tactics, with only one purpose: to make those with weak resolve voluntarily surrender their chips.
**The core logic of shakeouts is actually very simple**
Essentially, shakeouts are about exchanging chips, not grabbing chips. Market makers create panic to make retail investors sell cheap chips at the bottom, which then flow into the hands of more patient holders. When most retail investors choose to hold on stubbornly, the market maker escalates the tactics—either extending the shakeout period from days to weeks or even months; or intensifying the shakeout from mild fluctuations to fierce sell-offs.
Once you understand this, you'll realize that those drops that once scared you are actually the market helping you clear out less committed participants.