What should we do if the altcoin plummets? What should we do if Bitcoin falls?

First of all, we need to understand why Bitcoin falls, and most altcoins will also fall?

There are two situations here

1. After the main funds in the bull market have hyped up the top Bitcoin currencies, they need to wash out the floating chips and reap some profits. In this period of time, the funds are withdrawn and switched to altcoins to achieve secondary profits. Because the main force pulls the market first in the early stage of each bull market, Bitcoin injects confidence into the market. At most, the market share of Bitcoin can reach more than 70%. At this time, Bitcoin's dominance over the market is invincible. The withdrawal of funds and the start of Bitcoin's decline can bring huge fluctuations to the market. The altcoin market is small in size and is full of various types of funds, retail investors or main forces. At this time, retail investors will panic and sell. It is easy for the main force to make the price fall. The hot money of altcoins can either wait and see, or cooperate with the main force to smash the market, so that more and lower chips can be obtained effortlessly to achieve the effect of washing the top currencies at the same time, and low-level chips can be obtained on altcoins. The subsequent price increase will make a lot of money

2. In a bear market, the market is not active, and there are fewer people playing with stock funds because the market is not fun, so the liquidity of altcoins will be even worse. At this time, people are also very cautious and will withdraw as soon as there is a risk. So you will find that every time Bitcoin starts to fall in a bear market, as long as it weakens, most altcoins have already made a choice in advance and started to fall in advance. Only a few hot market currencies will be strong because of funds. The more bearish the market, the more serious the market differentiation will be.

Why don’t altcoins follow the rise when Bitcoin rises?

1. In the bull market, at the beginning, the market has gone through a long period of falling and volatile market. At the beginning, all funds go to pull up Bitcoin. At this time, retail investors in the market will rush in to buy altcoins. The big cake may rise by 20%, and most altcoins will rise by 10% and are very easy to fall. Because altcoins do not have main funds to make markets, the money is all in Bitcoin. At this time, Bitcoin will rise while altcoins will not follow. Also, when the market rushes to the stage top, many funds in altcoins will flee with the cover of Bitcoin, and then they will start to harvest synchronously. Six years of experience in the currency circle, any questions can be consulted for free, friends who want to clamp Junyang click on the avatar to discuss together #etf #比特币减半