When Bitcoin takes a noticeable hit in value, it often sets off a chain reaction throughout the entire cryptocurrency market. Since many altcoins tend to follow Bitcoin’s lead, their prices usually drop as well. This can spark panic among investors, leading to a wave of sell-offs and increased market instability. As confidence dips, the trading volume and liquidity of smaller tokens often shrink. New crypto projects may also find it harder to attract attention or funding during such uncertain times. Simply put, when Bitcoin stumbles, the whole crypto landscape tends to feel the shock.
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