Why is BTC down 5% but altcoins are down 20-30%?

+ Higher sensitivity: Altcoins often have a smaller market capitalization and little liquidity compared to BTC. This causes the price of altcoins to drop more when there are strong fluctuations.

+ Market psychology: Investors often look at BTC to trade altcoins. When BTC drops in price, it can cause panic and fear throughout the market, causing investors to sell off altcoins at a faster rate.

+ Transaction rate: Many investors use BTC to trade altcoins. When the price of BTC falls, the value of the assets they use to buy altcoins also falls, causing selling pressure to increase.

+ Lack of stability: BTC has been around longer and is more widely accepted, so it is relatively more stable than altcoins. Altcoins are often susceptible to bad news.

+ Dependence on BTC: Many altcoin projects still depend on the development and market psychology of BTC. If BTC falls, investors will worry about the sustainability and potential of altcoins, leading to a stronger sell-off.