EVER WONDER "Why does $BTC dip cause all market to dip"

Read Some Few Points

1. $BTC as a Market Leader
Many investors view Bitcoin as the benchmark for the market’s overall health.

2. Leverage #LiquidationData Future Traders

Many traders use leverage to bet on Bitcoin price. When $BTC price drops significantly, it triggers margin calls and forced liquidations of long positions. These liquidations create downward pressure on $BTC, further affecting #altcoins and exacerbating the overall market decline.

3. High Correlation

Most #Altcoins! are highly correlated with $BTC, meaning their prices tend to move in the same direction as Bitcoin.

5. Market Psychology

$BTCprice movements heavily influence market sentiment. A sharp decline in Bitcoin can trigger fear among investors, leading to panic selling across the board. This “fear contagion” spreads quickly due to the volatile nature of crypto markets.

6. Institutional Influence
#Altcoins , which are generally more volatile and less liquid, tend to experience steeper declines during such events.

TIP for FUTURE TRADERS

* Always Set Stop Loss Levels

* Avoid Over Leveraging

* Staying disciplined