What happened today

Crypto sold off sharply across the board. A macro headline hit risk assets, liquidity thinned, and forced selling in derivatives accelerated the move. Bitcoin fell first, Ethereum followed, and many altcoins underperformed as traders de-risked.

BTCUSD daily move

A wide-range down day shows how quickly markets can re-price after headlines and position unwinds.

Why A Headline Can Trigger A Sell-Off

  1. A risk-off headline lands and larger players cut exposure.
  2. Order books thin out and price gaps lower.
  3. Forced selling accelerates as positions are closed automatically.
  4. The cascade extends until new buyers step in or volatility cools.

What A Liquidation Cascade Is

A liquidation cascade is a chain reaction where positions are closed automatically as price moves against them. Closing those positions requires market sells, which push price lower and can trigger more closures. It is mechanical rather than emotional, which is why it happens fast.

Why Altcoins Fell More Than Bitcoin

When Bitcoin dominance lifts quickly, altcoins tend to bleed harder. Liquidity is thinner, positioning is more sensitive, and moves extend until conditions stabilise. After the cascade, majors usually base first; higher-beta alts follow later if risk appetite returns.

ETHUSD daily move

ETH typically shows larger percentage ranges on stress days. A level reclaim is safer than trying to catch a falling move.

A Simple Plan For Days Like This

• Avoid leverage entirely. Volatile, headline-driven sessions punish margin users most.
• Do not chase the first bounce. Let volatility compress and wait for a simple confirmation such as a clean intraday level reclaim that holds into close.
• If converting to stablecoins, verify token and network before you send.
• Set alerts at levels you would actually trade and let price come to you.
• Pre-define your maximum daily loss and step away if it is hit.

What To Avoid

• No leverage or futures. If you want exposure, use spot only.
• No knife-catching inside wide red candles.
• No revenge trading after a stop. Take a break and reassess with clear rules.
• No overtrading just because the range is large.

Rotation Notes For Altcoins

A common post-shock sequence is:

  1. Bitcoin stabilises first.
  2. Majors such as ETH base next.
  3. Higher-beta alts recover later if conditions improve.

Use that order to plan rotation rather than guessing bottoms.

Mini FAQs

Why did crypto drop yesterday?
A macro headline triggered risk-off flows, thin liquidity, and a wave of forced selling that accelerated the move.

What is a liquidation cascade?
A mechanical chain of automatic position closures that sell into a falling market, pushing price lower and triggering more closures.

Should I buy the dip after days like this?
Only with a plan. Wait for volatility to compress and for a simple confirmation; assume a second leg is possible and size modestly.

Why did Ethereum fall more than Bitcoin?
ETH is more sensitive to liquidity conditions. When Bitcoin dominance rises quickly, altcoins tend to underperform until conditions stabilise.

When do altcoins usually recover after a Bitcoin shock?
Typically after BTC stabilises and dominance stops rising. Look for a low-volatility base and a level reclaim rather than guessing.

How can I protect myself next time?
Use spot rather than leverage, pre-plan entries and invalidations, verify stablecoin networks before sending, and respect your daily loss limit.

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TON Mini Apps… What They Are And How To Use Them
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Coinbase Smart Wallet… Passkeys Setup
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Send USDT In Telegram On TON
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Altcoins Bled As Bitcoin Dominance Rose… KAIROS Timing Windows
https://www.themarketsunplugged.com/altcoins-bled-bitcoin-dominance-kairos-timing-windows/

KAIROS… Finding The Moment That Matters
https://www.themarketsunplugged.com/kairos-finding-the-moment-that-matters/

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Legal & Risk Notice
This article is educational content and not financial advice. Markets move quickly; always do your own research, use risk controls, and never trade what you cannot afford to lose.