#BTC新高10W
Why do altcoins drop when Bitcoin rises?
If you've been watching the market lately, you might have noticed a strange phenomenon: when Bitcoin rises, many altcoins drop. What's going on here? Let's analyze:
Bitcoin's dominant position: Bitcoin is like the 'anchor' in the cryptocurrency world. When Bitcoin rises, people feel it is more stable and are more willing to invest their money in it, making Bitcoin's position even more solid, while altcoins seem less attractive, causing their prices to naturally drop.
Liquidity shift: Most altcoins are traded on exchanges using Bitcoin. When Bitcoin rises, altcoins depreciate in relation to Bitcoin.
Market sentiment influence: The ups and downs of the cryptocurrency market often follow Bitcoin's trend. When Bitcoin rises, people feel the entire market is rising, but at this time, many may hesitate to take risks by buying lesser-known altcoins and instead rush to buy Bitcoin.
Profit-taking: Some people who previously bought altcoins and made a profit may see Bitcoin rising and think about selling their altcoins to buy Bitcoin, allowing them to continue making money. This puts pressure on altcoin prices, causing them to drop.
Whale manipulation: Some large holders, or those with a lot of money, may intentionally drive up or sell off altcoins to profit. When Bitcoin rises, they might withdraw their money from altcoins to buy Bitcoin, which disrupts the altcoin market.
Fear of missing out on Bitcoin: When Bitcoin rises, many worry about missing the opportunity to make money and invest all their funds in Bitcoin, leading to a decrease in funds for altcoins and preventing their prices from rising.
High speculation: Altcoins are generally more speculative than Bitcoin. When Bitcoin rises, people may find Bitcoin more reliable and flock to buy it, making altcoins seem even more speculative and causing their prices to become unstable.
The test of a bull market is not just the rise and fall of prices, but also a test of our mindset. In the face of account fluctuations, we must remain rational. Next, I will announce the next tenfold potential coin! Guessing is not as good as seizing the opportunity! Like + comment, and share freely.
