Altcoins, such as Ethereum and Solana, are more sensitive to macroeconomic data than Bitcoin due to their smaller market caps and speculative nature, according to crypto research strategist Matt Mena. He explained that the theory of reflexivity, developed by investor George Soros, can be applied to cryptocurrencies, as price movements influence investor behavior, which in turn impacts prices further. When macro data signals improved liquidity, such as potential Fed rate cuts, there is increased risk-taking and capital inflow into altcoins, leading to magnified price movements. Additionally, factors such as liquidations and risk management tools like margin calls and stop orders can exacerbate price swings in the crypto market, which is highly fragmented across numerous exchanges.



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