The answer is already in the question itself – the crypto market does not live in a vacuum. It's like a matryoshka doll: it is embedded in the global financial market and depends on it.
Imagine the entire global market as a huge bubble. There are different markets inside it:
• Bonds
• Real estate
• Stock market
• Precious metals
• Oil and raw materials
• ...and cryptocurrencies
The crypto market is only 3 trillion of the total 440 trillion. Less than 1%. Microbubble.
There are 2 trillion bitcoins inside it, and the rest are altcoins. When chaos begins in the global market (for example, tariff wars), investors start to get nervous.
The market lives by expectations
Investors are not looking at the present, but at the future. They don't know how the trade war will end.:
• How will Canada respond?
• How will China respond?
• What will the Fed do?
• Will rates be raised or lowered?
Uncertainty = fear.
How do investors mitigate risks?
When no one understands what's going to happen next, the logic is simple.:
In the global market: they go into defensive assets → dollar, gold, bonds.
In the crypto market: they enter Bitcoin or stables (USDT/USDC).
Altcoins are being drained because they are the riskiest assets inside the crypt.
Why is the dominance of BTC growing with every crisis?
• For a traditional investor, bitcoin is a risk. It's younger than the stock market, it's technological, it's new.
• But inside the crypto market, BTC is a protection. He has no corporate risks like the altos.
When the crisis begins:
1. All markets (stocks, bonds, crypto) merge.
2. Bitcoin is falling, but alts are falling harder.
3. Part of the capital from alts flows into BTC → dominance is growing.
And now the key point: violas need more time to recover.
• Markets must calm down first.
• Then there should be optimism and a willingness to take risks.
As long as there is uncertainty and pessimism, it is pointless to expect alts to outperform BTC.
Alts are corporate risks:
• Commands
• Central offices
• Competition
• Product cycles
Bitcoin is a protocol. Like the Internet. Without corporate risks.
That's why alta always suffers more at times like this.
