🔗 Risk Chain: from Altcoins to Exchange Shutdown

1. Liquidity Source #1: Selling Altcoins.

· Exchanges (especially those that actively issue loans and work with futures) hold a huge amount of altcoins on their balances.

· When they need dollars or bitcoins to maintain liquidity (so you can sell BTC at the stated price at any moment), they first sell what is easiest to sell. First stablecoins, then top altcoins (ETH, SOL), and then everything else.

· This creates immense pressure on altcoins, explaining why they fall faster and harder, even when BTC holds.

2. Liquidity Source #2: The Exchange's Own Reserves.

· Exchanges have treasuries — their own stocks of BTC, ETH, and cash. They use them as a "safety cushion" to dampen spikes in volatility and fulfill your orders.

· In a prolonged capital outflow and falling market, this "cushion" is depleted.

3. Moment of Truth: When Money and Altcoins Run Out.

· There comes a moment when selling altcoins makes no sense — their price has collapsed, and they do not provide sufficient liquidity. The exchange's own bitcoin reserves are also running low.