Altcoin Bloodbath Incoming? Trader Bets $1M on Sector Collapse to 2020 Prices

The trader likened the current altcoin market to penny stocks, except in this case spread across tens of thousands of tokens.

Popular crypto trader Doctor Profit has said that the altcoin sector could fall back to its 2020 levels.

And he is putting his money where his mouth is, backing his prediction with $1 million worth of short positions across 100 altcoins.

100 Coins, $10,000 Per Coin

In a post shared on X earlier today, Doctor Profit outlined his strategy built on 100 isolated short positions of $10,000 each, all placed with 1x leverage.

“I’m now betting on the biggest hill of garbage the market has ever seen, even worse than during the dot com bubble and the garbage of the penny stocks,” he declared.

The trader says altcoins are in “a multi-year bear market,” with as much as 90% of that market being in a relentless structural downtrend, and that there presently isn’t any catalyst that can change their trajectory, including social media influencers, whom he accused of shilling what he described as “garbage” to the public.

He added that when $19 billion was wiped out from leveraged positions in one of the worst liquidation events in the history of crypto on October 10, 2025, most altcoins fell by between 50% and 80%. What remained, in his view, was stranded retail liquidity with no institutional floor to support it.

The analyst estimates a 50% drop across his positions, which, if realized, would translate to about $500,000 in profit. According to him, if any single position gets liquidated because a coin doubles in price, the loss will be capped at $10,000 while the other 99 positions keep running.

He also insisted that his play was not based on guesswork, likening the current altcoin market to penny stocks, which look cheap to buy but have no mechanism for recovery. However, per his assessment, the opportunity set comprises tens of thousands of liquidity-filled altcoins, which he claims are “ready to be milked.”

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Others Say Fed Liquidity Could Change the Equation

Despite Doctor Profit’s dismissal of altcoins, there are other market watchers who believe the sector is due for a bump upwards soon. One of them, Mark Chadwick, has pointed to the Federal Reserve’s balance sheet activity, saying it is a potential wildcard. He pointed to several incoming liquidity injections due this week, including a $5.058 billion Fed bill purchase and $90 billion to be released through the Treasury General Account, as well as a $15 billion Treasury debt buyback, which he described as the largest on record.

The trader drew one conclusion from all that activity: that quantitative tightening is effectively ending, and alt season, rather than being canceled, had only been delayed.

Looking at the market, Bitcoin was trading near $76,000 at the time of writing, up by about 2.4% in the last 24 hours, with a dominance sitting at 57.4%. Several major altcoins also posted modest 24-hour gains, with Ethereum (ETH) near $2,300, Solana (SOL) around $86, and XRP at $1.43, even though some analysts believe the token is getting ready for a move that could push it as much as 35% in either direction.