Altcoin Volatility!

Why Is the Market Fluctuating So Sharply?

Along with the overall market decline, volatility on the altcoin side is growing much more sharply compared to BTC. The main reason for this is not price but liquidity structure:

• Altcoin order books are much shallower than those for BTC and ETH.

• Even small sales create a "price effect."

• Leveraged long positions had accumulated; the decline triggered chain liquidations.

• Volatile ETF flows clearly weakened risk appetite.

• Low volume during Asian hours further thinned liquidity.

Due to this structure, altcoin declines typically produce 2–4 times the volatility of BTC.

This is not a technical weakness; it is the nature of the market cycle.

The aggressive pullback seen on the #altcoin side is more a liquidity-driven price behavior than a trend break.