This strong drop of *Bitcoin* affects *almost all other cryptocurrencies* for 3 main reasons:
🔗 1. *$BTC pulls the entire market*
- Bitcoin is the *main asset of the crypto market*.
- When it drops sharply, investors enter *fear mode (FUD)* and sell other coins as well.
- Altcoins usually *drop more than BTC* in these situations.
📉 2. *Chain liquidation*
- The drop of BTC forces the liquidation of *many leveraged positions in altcoins* as well.
- This generates *automatic sales* in bulk, which *further drives down prices*.
💰 3. *Capital flight from the market*
- Large investors (whales) pull money out of the market when BTC shows weakness.
- This *reduces liquidity* in altcoins, which end up facing even more selling pressure.
⚠️ Practical example:
If BTC drops 5%, coins like:
- $ETH , $SOL , ADA, SHIB, BNB* can drop by 7% to 15%
- Memecoins and small tokens drop even more
(sometimes 20%+)
📌 In summary:
The drop of BTC *slows down the entire crypto market*, causes *widespread fear*, and can create *great entry opportunities*, but *requires extreme caution*.
