Why Do Altcoins Drop Sharply When Bitcoin Only Pulls Back Slightly? 📉

It's common for Bitcoin to experience a mild correction while altcoins suffer much heavier losses. This is often due to capital flow: Bitcoin is seen as a leading asset and a relative safe haven. Altcoins carry higher risk, so investors rotate capital from them into Bitcoin or stablecoins during volatility.

Most altcoins are traded against BTC. When Bitcoin declines, altcoins face a double impact: they fall against the US dollar and also lose value relative to BTC. This leads to much steeper declines, amplified by leverage and liquidations. 💥

During corrections, Bitcoin dominance often rises, indicating capital flowing back into BTC. Many altcoins may have also pumped significantly beforehand, leading to earlier and more aggressive profit-taking. Market psychology plays a key role; if Bitcoin struggles, confidence in altcoins diminishes. 🧠

A small Bitcoin pullback doesn't mean altcoins are safe. During corrective phases, altcoins tend to fall faster, drop harder, and recover more slowly than Bitcoin. Stay cautious! ⚠️

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