@rengerswhitacker
Rumors of Bitcoin ETF approval often cause liquidity to migrate from altcoins into BTC as traders rebalance toward the perceived “safer” asset. This temporarily drains liquidity from smaller tokens, widening spreads and increasing volatility in those markets. Investors should avoid forced selling of altcoins during liquidity droughts. Instead, they can rotate gradually, hedge with BTC pairs, or wait for post‑rumor normalization. Understanding liquidity rotation cycles helps avoid unnecessary losses and improves timing for re‑entry into altcoins once capital flows stabilize.
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