Why your alt didn't dump as much

[libert19]

I was wondering why the alt I was holding didn't dump as much as top currencies then came to a Twitter thread elaborating there is no exit liquidity for alts to dump as fast. Liquidity having coins dump first and others later.

It got nothing to with project itself, it's just market. It's better to exist asap.

There was nice Twitter thread explaining all this but I forgot where I read it.

So if you were curious, there it is.

[mk4]

Bitcoin and Ethereum are bought and sold highly with leverage, hence significant movements in either direction can cause liquidation cascades hence the more sort of 'violent' movements. And to add to that, liquidation cascades on DeFi loans with ETH and wBTC as collateral.

[logfiles]

Bitcoin and Ethereum are bought and sold highly with leverage, hence significant movements in either direction can cause liquidation cascades hence the more sort of 'violent' movements. And to add to that, liquidation cascades on DeFi loans with ETH and wBTC as collateral.

Not forgetting those liquidations (whose exit orders end up getting executed at market price) also trigger stop losses set up by other traders in most cases, thereby lowering the price even further until the point reaches where there is a temporary equilibrium in the market.

[_BlackStar]

I really want to know which alt you mean because I believe most altcoins will follow the bitcoin price trend so far. IMO, the current average of the top altcoins have fallen by more than 80% since their last ATH, I can expand the list here for comparison.

The following is the current market condition regarding the percentage decline in bitcoin prices and top altcoins after last year's bitcoin ATH.

Bitcoin - [-71.3%]
Ethereum - [-78%]
BNB - [-69.5%]
Cardano - [-84.9%]
XRP - [-90.6%]
SOLANA - [-87.1%]
Polkadot - [-86.6%]
TRON - [-73.7%]
LEO - [-36.5%]
Shiba Inu - [-90.6%]

[teosanru]

I was wondering why the alt I was holding didn't dump as much as top currencies then came to a Twitter thread elaborating there is no exit liquidity for alts to dump as fast. Liquidity having coins dump first and others later.

It got nothing to with project itself, it's just market. It's better to exist asap.

There was nice Twitter thread explaining all this but I forgot where I read it.

So if you were curious, there it is.

Most Altcoins have fallen for sure, but yes a general tendency and pattern has been that alts fall much more than what BTC falls, and this difference is exponential. So coming from that way I feel alts still have a lot of room to fall. If there will be a bear market then the pattern would be like first btc will pump and alts won't a bit making a bull trap and then suddenly prices would fall and this time bitcoin will also fall and alts will fall too.

[Slow death]

all altcoins also dropped a lot, if we compare for example LTC that even when bitcoin reached ATH, LTC could not also reach the ATH it had when bitcoin reached $20,000, by which I mean that altcoins are very unstable and only very solid projects (something I haven't seen so far) that aren't bitcoin dependent could withstand when bitcoin drops a lot and of course I haven't seen any altcoin be bitcoin independent so far. Well the good news is that the price of bitcoin is resisting a lot to fall below $17000, it even rose to $20,000

I was wondering why the alt I was holding didn't dump as much as top currencies then came to a Twitter thread elaborating there is no exit liquidity for alts to dump as fast. Liquidity having coins dump first and others later.

It got nothing to with project itself, it's just market. It's better to exist asap.

There was nice Twitter thread explaining all this but I forgot where I read it.

So if you were curious, there it is.

Most Altcoins have fallen for sure, but yes a general tendency and pattern has been that alts fall much more than what BTC falls, and this difference is exponential. So coming from that way I feel alts still have a lot of room to fall. If there will be a bear market then the pattern would be like first btc will pump and alts won't a bit making a bull trap and then suddenly prices would fall and this time bitcoin will also fall and alts will fall too.

I agree, but strange that I saw that some altcoins recovered a lot from the fall they had in the BTC - Alt pair, I don't know why

[JeromeTash]

I really want to know which alt you mean because I believe most altcoins will follow the bitcoin price trend so far. IMO, the current average of the top altcoins have fallen by more than 80% since their last ATH, I can expand the list here for comparison.

You got it right, bro. I really wonder what altcoins OP was looking at that really didn't "dump"  except for stablecoins or coins that are pegged to things like Gold. Hell! Even all "stablecoins" are more than -10% from their "all-time high" 

[boyptc]

Majority of them dumped and they all just follow whichever path bitcoin is going. They're all attached to it but for some altcoins, they didn't dump that much but still it's a dump for them.

Probably maintained a great position but it's only a matter of time then they're about to be dumped again once bitcoin's dominance increases. As it recovers now, money in the alts will probably back to bitcoin.

[seleme]

I really want to know which alt you mean because I believe most altcoins will follow the bitcoin price trend so far. IMO, the current average of the top altcoins have fallen by more than 80% since their last ATH, I can expand the list here for comparison.

You got it right, bro. I really wonder what altcoins OP was looking at that really didn't "dump"  except for stablecoins or coins that are pegged to things like Gold. Hell! Even all "stablecoins" are more than -10% from their "all-time high"  

Probably OP wanna explain the liquidity issues during fast markets, the lack of liquidity can lead to bloodbath in few hours while it is much harder for top coins with strong trading volume.
Regarding stable coins, TRX based $ pegged stable coin USDD is trading around $0.94 due to market circumstances. Let's see what is next for crypto market, waiting for second correction then straight downhill on top crypto index.

[crzy]

Bitcoin and Ethereum are bought and sold highly with leverage, hence significant movements in either direction can cause liquidation cascades hence the more sort of 'violent' movements. And to add to that, liquidation cascades on DeFi loans with ETH and wBTC as collateral.

This is a high liquidity and many traders are very active right now in that’s why the marker is dumping so fast. Not all altcoins are active some are already stagnant with their price and that’s why you see a no action at all aside from dumping. That altcoins can rise once the market recovers, expect for the altcoins to recover after Bitcoin so this may take a months before it happen again.

[JeromeTash]

Regarding stable coins, TRX based $ pegged stable coin USDD is trading around $0.94 due to market circumstances. Let's see what is next for crypto market, waiting for second correction then straight downhill on top crypto index.

isn't it one of those algorithmic stable coins?

If yes, then if you have any of them, just sell them off right now. I can bet my neck on this, the coin is going to depeg from the USD at one point. Am to trying to FUD or anything like that, but I am just trying to be logical based on what happened recently.

[bhooscream]

I was wondering why the alt I was holding didn't dump as much as top currencies then came to a Twitter thread elaborating there is no exit liquidity for alts to dump as fast. Liquidity having coins dump first and others later.

No wonder, this is a bearish era, isn't this? I think about it because all coins are exactly dropped, following the journey of Bitcoin that is also crashed so much.
This may not be the end of this crash price because some continuous drops may still be ongoing. However, who knows the market exactly? Who knows that several months later the market will immediately pump? Or vice versa?
That is why for whatever altcoins that I am holding right now, I have no choice but to hold them. Whether they can survive or not, this becomes my own risk because I have bought them, and too late to stop loss 

[mk4]

This is a high liquidity and many traders are very active right now in that’s why the marker is dumping so fast. Not all altcoins are active some are already stagnant with their price and that’s why you see a no action at all aside from dumping.

That's definitely not the reason. High trading activity can work both ways, and huge selloffs can happen regardless if the liquidity is high or low.

That altcoins can rise once the market recovers, expect for the altcoins to recover after Bitcoin so this may take a months before it happen again.

I'll bet you that most of the altcoins in this market(outside of Ethereum, Solana, etc) are already toast and is likely to not go back to previous all-time highs. The newer ones that would attract typical retail participants are the ones that will go high, mostly not the old ones.

[cryptomaniac_xxx]

I really want to know which alt you mean because I believe most altcoins will follow the bitcoin price trend so far. IMO, the current average of the top altcoins have fallen by more than 80% since their last ATH, I can expand the list here for comparison.

The following is the current market condition regarding the percentage decline in bitcoin prices and top altcoins after last year's bitcoin ATH.

Bitcoin - [-71.3%]
Ethereum - [-78%]
BNB - [-69.5%]
Cardano - [-84.9%]
XRP - [-90.6%]
SOLANA - [-87.1%]
Polkadot - [-86.6%]
TRON - [-73.7%]
LEO - [-36.5%]
Shiba Inu - [-90.6%]

Yeah, I was about to say that,  You can also add Doge on it as per coinmarketcap:

All Time High
May 08, 2021 (a year ago)   $0.7376
92.10%

So majority dump way more than BTC. So regardless of the liquidity argument, lol, they are altcoins, well still very difficult to conclude. So it could be a plus/minus for measurements, but we also have to factor volatility in my opinion.

[LouVandetta]

I really want to know which alt you mean because I believe most altcoins will follow the bitcoin price trend so far. IMO, the current average of the top altcoins have fallen by more than 80% since their last ATH, I can expand the list here for comparison.

The following is the current market condition regarding the percentage decline in bitcoin prices and top altcoins after last year's bitcoin ATH.

Bitcoin - [-71.3%]
Ethereum - [-78%]
BNB - [-69.5%]
Cardano - [-84.9%]
XRP - [-90.6%]
SOLANA - [-87.1%]
Polkadot - [-86.6%]
TRON - [-73.7%]
LEO - [-36.5%]
Shiba Inu - [-90.6%]

This!! For real tho, makes you wonder which alt that op has. And it's really obvious that most altcoins at the time were in the bottom. At least today's prices seems a bit a lot better than before. It's scary to think that even major altcoins could have fallen that deep.
So far, bitcoin still holds the wheels, when it dumps then alts will also suffer from it. Tho some other factors played a part in it as well, such as volatility, news and all.

[sklopan]

The most striking phrase that as a whole described the whole situation is the market. It is not worth expecting much, and it is worth analyzing the current situation very qualitatively.

[_BlackStar]

Probably OP wanna explain the liquidity issues during fast markets, the lack of liquidity can lead to bloodbath in few hours while it is much harder for top coins with strong trading volume.

I seem to understand what the OP is trying to explain, but of course I just want to know what altcoin he is referring to. It is possible that altcoin traded in highly liquid markets will not gain influence quickly during fast markets. It really depends on how the traders react during a fast market and usually no matter how good the liquidity is, there is always a chance that the holders or whales will make a massive sell off which will affect the market price.

Probably his altcoins doesn't have much volume or it is just relatively new which might have hype factor to withstand the bear market.

Sure, but it's only temporary as the hype will soon dissipate once most people are will sell and secure profits. So in the end the altcoin you are referring to is not an option for the long term, and be careful.

[Flexystar]

Yeah, I am also scratching my head right now. Which alts he is talking about, may be they are hypothetical and does not exists yet. Lolz.
On the serious front, no there is no such alt which has not dumped with same frequency as bitcoin did or the share market as whole did. Crypto is synching with the market and stuff is getting real bad ass now. Except the stable coins, there is no other alt which has not dumped a lot. In fact many of them are doomed by 80% plus deduction in the prices and market depth is crazy low. With this, they are now on the verge of closing the projects also. So yup same question from my side too, what are his alts!

[noorman0]

The next question, do such alts also respond when the market moves up? Sometimes they defy gravity to global price fluctuations where trends can change suddenly. And you have to be careful with that because most of the liquidity cases are contributed by only a few parties. It's like releasing a bird to look for a grasshopper in a snake's nest.

[Mpamaegbu]

I don't know if I'm the only one who is lost here, following OP as they didn't list the alt they're hodling which didn't dump. From what I've seen on crypto sites and my portfolio, alts dumped seriously. Except OP is referring to stablecoins, otherwise alts dumped. They're likely to dump even more in days to come as I believe Bitcoin isn't yet done with its correction. We know whenever Bitcoin goes down, it drags alts with it.