Where does the buying pressure for Bitcoin come from?
The answer lies in these BTC/altcoin trading pairs! Most investors buy coins through USDT, but recently, many market makers and institutions have adopted a different operation model: they exchange altcoins for Bitcoin through altcoin/BTC trading pairs. This essentially amounts to selling altcoins on the market, leading to a decline in altcoin prices.
So, why do altcoins often fall when Bitcoin rises? The reason is here: the selling pressure faced by altcoins mainly comes from the frequent currency exchange operations of these institutions.
When the price of Bitcoin rises, these institutions exchange the Bitcoin they hold back through BTC/altcoin trading pairs, creating a repeated cycle.
This operation not only increases the amount of USDT and Bitcoin held by institutions and market makers but also amplifies the returns on capital through leverage.
This explains why altcoins face selling pressure when Bitcoin rises, but it also reveals a signal: when Bitcoin's market gradually stabilizes, the opportunity for altcoins will come.
So, stay calm, seize valuable coins, and wait for the moment when the bull market erupts!
