$USUAL $BTC #ETH #SUI #SOL #BCH
Why does altcoins fall when BTC falls? Let's see!
Bitcoin's decline directly impacts altcoins because it is the "thermometer" of the crypto market. As the largest and most dominant cryptocurrency, any negative movement in BTC generates fear (FUD) and uncertainty among investors, who sell altcoins to protect capital in more consolidated assets or stablecoins. In addition, the high correlation between cryptos causes altcoins to follow Bitcoin, even without high volumes of their own. The lower liquidity of altcoins and the exaggerated reaction of the young market amplify these falls, showing how BTC leads the market sentiment as a whole.
However, it is important not to despair when Bitcoin falls. Historically, BTC has demonstrated its strength by recovering values after corrections, and is considered a resilient asset. This recovery usually occurs due to its growing adoption, market confidence, and position as a reference in the crypto universe. Therefore, momentary drops can be seen as part of its natural volatility and even as opportunities for those seeking strategic positions.
Patience at this moment is all we need to avoid losses and regrets. This is just an opinion, not advice!!!
Do your own research, be vigilant, and manage the risk of your capital.