Why do altcoins not follow when BTC rises, but drop harder than anyone else when BTC falls!
Currently, most altcoins exhibit this characteristic: PPT-style innovation! This means creating extremely enticing and boastful vision plans, and once they are launched on trading platforms, they start dumping heavily. Due to the increasing number of cryptocurrencies being launched nowadays, with varying qualities, altcoins have become extremely fragile and cannot withstand even slight disturbances. The fundamental reason for the severe decline of altcoins is:
When Bitcoin rises, altcoin trading becomes active, and many investors buy in, but the manipulators take the opportunity to sell off madly, continuously dumping their holdings. As a result, looking back at past performance, the growth of many altcoins is far less than that of Bitcoin. After all, the manipulators hold a large amount of chips, and with continuous selling, the coin prices naturally struggle to rise.
The same goes for the downturn phase, where manipulators just focus on dumping, completely ignoring the need to support the market. Even if some investors attempt to buy the dip, the manipulators continue to sell off. In the past, launching coins in the crypto space was quite challenging, and manipulators placed great importance on chip distribution and concentration, carefully planning their control over the market, with stricter requirements from exchanges.
But the current state of the crypto space is entirely different. Just Binance alone has launched numerous projects such as USUAL, PENGU, CAT, VANA, ME, MOVE, ORCA, ACX, etc., all in a single month. Launching coins has become easy, and manipulators only need to continue dumping. If a project cannot sustain itself, they simply create a PPT to start the next project. With USDT and related resources, launching coins is as easy as drinking water, and exchanges lack effective regulation on this. If exchanges could force project parties to support their coins and take a firm stance, some project parties would inevitably take action, and the decline of altcoins might not be so severe.
