The decline of major currencies and the rise of small currencies at the same time may seem contradictory, but it actually reflects capital movements and investor behavior in the market. Main reasons:
Profit Taking: After a strong rise, large investors begin to sell major currencies to take profits.
General Market Condition: If the market is in a 'correction', major currencies are affected first because they are the most traded.
Liquidity Transition: Investors shift from major currencies to small currencies in search of higher profits.
Regulatory Pressures or Negative News: Major currencies are more susceptible to negative news or government regulations.
📈 Why are small currencies rising?
Quick Speculations: Small currencies attract traders looking for a quick and significant profit in a short time.
Temporary Liquidity Injection: Capital moves to them after selling major currencies, temporarily raising their prices.
New Projects or Rumors: Sometimes small currencies rise due to the launch of a project or unconfirmed news.
Ease of Manipulation: Low liquidity in small currencies allows whales to move the price quickly.
🧠 Important Note:
This type of movement (decline of major currencies and rise of small ones) is often short-term, and may be followed by:
A strong correction in small currencies.
Return of liquidity to major currencies at the time
