Quinn Thompson, founder of Lekker Capital, a prominent cryptocurrency hedge fund, has issued a dire warning to the crypto community. Thompson predicts a massive liquidation wave is imminent, which will devastate the altcoin market. This warning comes as the market appears to have lost its ability to recover, with leverage and open interest remaining high.

Thompson attributes the changed market dynamics to the launch of Bitcoin spot ETFs, which has altered the way capital flows into the crypto market. In the past, investors would move from Bitcoin and Ethereum to smaller cryptocurrencies as confidence grew. However, the current landscape has shifted, with investors struggling to purchase altcoins due to limited access through their brokerage accounts.

The result is a lack of demand to support the supply of altcoins, leading to a predicted supply inflation of $3 billion per month over the next one to two years. Thompson draws a parallel with the stock market, where some stocks thrive while others decline. He expects a similar distribution in the crypto market, with some altcoins performing well while others plummet.

The stagnation in demand will hit altcoins hard, particularly as many crypto projects unlock their tokens, flooding the market with previously blocked coins. The combination of token supply unlocks and selling pressure from venture capitalists will be too strong for most tokens, leading to a devastating blow to the altcoin market.

Thompson's warning is a stark reminder of the risks involved in investing in cryptocurrency. As the market prepares for a potential apocalypse, investors must be cautious and aware of the dangers lurking in the shadows. Will the altcoin market survive the impending doom, or will it succumb to the pressures of supply and demand? Only time will tell.