It seems that this avalanche originates from altcoins, but the real last straw that broke the camel's back is the second coin.
1. The second coin, as the only one besides the first coin, has always held a significant position in the cryptocurrency market. Its sharp decline has made this storm even more direct; simply put, the harvesting has become overt. The manipulators no longer need to hide; they are directly wielding their scythes to cut the grass.
2. Ethereum is known as the mother of altcoins, and its current performance has turned panic into fear, as the survival of these altcoins is now in question. Many are afraid of the next bull market, especially since these altcoins have already been delisted and gone to zero. Thus, selling off while there is still some value has become a trend, leading to a sell-off stampede and creating a vicious cycle.
3. The market for the second coin contains a large number of institutional investors. Now that it has plummeted so badly, many of these large investors have been liquidated, and a significant portion of their funds comes from lending institutions. If such situations occur frequently, the lighter consequence is that the collateral of these large investors gets liquidated, and the heavier consequence could resemble the Three Arrows Capital scenario.
It can be said that the movement of Ethereum indirectly determines the intensity and bottom of this liquidation. If Ethereum warms up, the market will retaliatorily surge.
