Altcoin Volatility: Short-Term Speculation vs. BTC Consolidation

The sudden rises and falls of altcoins are driven by the limited nature of the "risk-on" psychology. Bitcoin's stability above the 100K+ level is directing investors to altcoins, but these movements cannot be sustained due to a lack of deep liquidity. This situation typically indicates a classic scenario where BTC is in a "liquidity gathering" phase prior to a new trend:

- Algorithmic trading and whale manipulation: Sudden movements in altcoins may trigger a transfer of resources to BTC by drawing small investors into positions with liquidity traps and forcing exits.

- Historical similarities: During the BTC consolidation periods of the 2017 and 2021 bull runs, altcoins exhibited extreme volatility; subsequently, the entire market rose under BTC's leadership.