Why do altcoins not follow when BTC rises, but fall harder than anyone else when it drops? Today, let's talk about why current altcoins can't withstand even a little turbulence! First, let's define altcoins: Altcoins refer to all cryptocurrencies other than Bitcoin. After Bitcoin, various other cryptocurrencies began to emerge, many of which modified or innovated based on Bitcoin, while some were created to meet different needs or specific uses. Because these cryptocurrencies are often born under the influence of Bitcoin, they are sometimes jokingly referred to as 'altcoins'. The term 'altcoin' can sometimes carry a derogatory connotation, implying that these coins are 'imitations' or 'copies'. However, some altcoins have innovated in terms of technology, functions, use cases, and have achieved significant market positions. For example: Ethereum: Although it initially appeared as a 'copycat' of Bitcoin, it became the second-largest cryptocurrency globally by introducing innovations like smart contracts and decentralized applications (dApps), driving the entire blockchain ecosystem's development. Ripple (XRP): Ripple is a cryptocurrency associated with traditional financial systems, aiming to improve cross-border payment systems through blockchain technology, with significant practical application value. Litecoin: Litecoin is one of the earliest 'copycat' cryptocurrencies of Bitcoin, which adjusted Bitcoin's algorithm and transaction confirmation time, enabling faster transaction speeds, with the goal of becoming a more lightweight and efficient cryptocurrency. Dogecoin: Originally appearing as a joke and meme, Dogecoin has gradually developed into one of the world's most well-known crypto assets through strong community support and an ever-increasing range of applications. Earlier altcoins also had some technical and application innovations: Technical innovations: These altcoins attract users by offering different technical characteristics from Bitcoin (such as faster transaction speeds, smart contracts, privacy protection, etc.). Application innovations: These altcoins focus on applications in specific industries or scenarios, such as cross-border payments, decentralized finance (DeFi), supply chain management, etc. But now, altcoins are more about: PPT innovation! Simply put, it means writing grand visions and then frantically dumping them! As more coins come onto the market and the quality declines, altcoins have also become fragile! Why do altcoins not follow BTC when it rises, but fall harder than anyone else when it drops? The fundamental reason for the severe drop of altcoins is: when Bitcoin rises, more people buy altcoins, and whales frantically dump, continuously selling! So looking back, many altcoins have not risen as much as Bitcoin! Whales have too many chips in hand, they keep selling, how can the coin price rise! The same goes for when it falls! Whales only sell coins, not defend the market; if you try to buy the dip, they still dump!! In the past, it wasn't so easy to list coins in the crypto space; traders cared a lot about the distribution and concentration of chips and emphasized control over the market, with stricter requirements from exchanges! Nowadays, in the crypto space, Binance alone has listed USUAL PENGU CAT VANA ME MOVE ORCA ACX, etc., in just a month!!! It's too easy to list coins; whales just need to sell, and if a project goes down, they just need to create a new PPT for the next one! With USDT and resources, listing coins is as easy as drinking water! Exchanges are also inactive! If they enforced market protection and had a tougher stance, some project teams would have to protect it!!! Altcoins wouldn't drop so badly! Everything is a result of indulgence and neglect! That's why this year, Chong Ge has been emphasizing the 'bad guy theory'! Remember the 'bad guy theory': in the crypto space, regardless of whether the market is good or bad, just carry the bad guy through! The crypto space is both a stage for human nature games and an arena for the collision of beliefs and strategies. Every fluctuation is a selection and reshaping process, eliminating blind followers and leaving those who truly understand market rules.
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