#MarketPullback

Altcoins are hitting new lows due to a combination of macroeconomic pressure, market structure, and whale-driven liquidity games. Here’s a clear breakdown of why this is happening and how whales are squeezing the market — including the impact on BTC.

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🔻 Why Altcoins Are Hitting New Lows

1. BTC Dominance Spike:

• Bitcoin dominance has surged recently. This means most inflows are going into BTC, not alts.

• Alts bleed both in USD terms and BTC terms when dominance rises.

2. Lack of Retail Liquidity:

• Retail sentiment is weak; most traders are on the sidelines.

• Institutions and whales dominate, leading to unbalanced market dynamics.

3. High Funding Rates & Leverage Flushes:

• Traders are overly long or short with high leverage.

• Whales trigger liquidations by pushing prices quickly up or down — forcing positions to close and draining liquidity.

4. Exit Liquidity Has Dried Up:

• Many altcoins are still overvalued relative to utility, despite falling 70-90%.

• Buyers are not stepping in, so every small sell causes a bigger price drop.

5. ETF/Regulatory Focus on BTC and ETH:

• Spot ETF flows and media attention are centered around Bitcoin and Ethereum.

• Altcoin narratives are weak right now; no strong catalysts are driving new capital.

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🐳 How Whales Are Squeezing Liquidity

1. Fake Pumps & Dumps:

• Whales push prices up briefly to attract late FOMO longs.

• Once positions are stacked, they dump into them and trigger cascading liquidations.

2. Range-Bound Manipulation:

• Alts are trapped in tight ranges while market makers exploit both sides of liquidity.

• This crushes swing traders and eats up retail capital.

3. BTC as a Weapon:

• Whales use BTC to set the mood.

• A controlled drop in BTC drags down alts harder due to lower market caps and thinner order books.

4. Draining Open Interest:

• They build up OI on alts with small market caps, then nuke them to wipe out long/short positions — profiting from both funding and liquidations.