(1) Liquidity advantage
Bitcoin is the most liquid asset in the cryptocurrency market, with an average daily trading volume exceeding $30 billion, far surpassing altcoins.
During market panic, investors tend to hold assets that are easy to buy and sell, avoiding losses from low liquidity that could result in being unable to 'sell' or suffering from 'slippage'.
(2) Lower volatility
Bitcoin's annualized volatility (approximately 60%-80%) is higher than gold, but much lower than most altcoins (such as SOL, DOGE, etc., which often exceed 150% volatility).
During market pullbacks, Bitcoin's price decline is usually smaller than that of altcoins. For example:
Data from August 2025: BTC fell by 3.7%, while altcoins fell by an average of 15%-20%.
(3) Support from institutions and long-term holders (HODLers)
Bitcoin ETF inflows are stable (such as BlackRock's IBIT positions continuously growing), while altcoins lack similar institutional support.
Long-term holders (LTH) account for 70%, and their 'diamond hands' strategy reduces selling pressure, while altcoin holders tend to take profits in the short term.
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