The Fed's balance sheet reduction directly withdraws funds from the market. High-risk altcoins have become the hardest hit by selling due to the lack of institutional support. Data shows that more than 70% of the top 100 altcoins by market value have fallen to their lowest point this year.
Investors' risk aversion has intensified, and funds have "migrated" from altcoins to Bitcoin. Bitcoin's market value has rebounded to 55%, a new high since 2024, further squeezing the survival space of altcoins.
