Following the Fed’s decision to cut interest rates, altcoins emerged as the real winners in the cryptocurrency market, with the market cap of the top 125 altcoins rising by 5.68%, compared to just 4.4% for Bitcoin $BTC .
Altcoins are more volatile assets than Bitcoin $BTC and Ethereum $ETH , and are similar in their performance to tech stocks that outperform market indices during times of recovery. The low liquidity levels of these currencies increase their volatility, leading to large price movements when liquidity is abundant, as happened after the Fed’s decision.
