Key Points
- The daily decline of the four major altcoins all exceeded 12%.
- Bitcoin demonstrates stronger resilience during the sell-off in the crypto market
- Lack of liquidity and high leverage have amplified the decline of altcoins.
On October 15th, the decline of altcoins was significantly faster than that of Bitcoin. As investors withdrew from riskier cryptocurrencies, Raydium ( RAY ), Zcash ( ZEC ), Lighter ( LIT ), and Starknet ( STRK ) all fell by more than 12%.
According to Invezz, during earlier market sell-offs, Bitcoin traded near $81,000, while the total market value of cryptocurrencies fell by about 3.7% within 24 hours, to $2.7 trillion.
This differentiation highlights a common pattern during market stress: smaller tokens tend to experience greater declines, as speculative traders close their positions and leave the market, making liquidity even more difficult to obtain.
RAY, ZEC, LIT and STRK lead to the sell-off of altcoins
The decentralized exchange token Raydium, which is related to Solana, was one of the varieties with the largest declines on Thursday. RAY fell by more than 12%, giving back some of the considerable gains made in the past three months.
Before the latest callback, the token had accumulated a gain of about 170% within 90 days, which makes it particularly susceptible to profit-taking when the overall market sentiment deteriorates.
Zcash also faced similar pressures. This privacy-focused cryptocurrency fell to $1,100, after previously trading above $1,650 in September.
In the reporting period of October 15th, leveraged positions worth approximately $20 million were liquidated, further exacerbating the selling pressure on Zcash.
Lighter and Starknet also recorded double-digit declines, indicating that the pressure is not limited to Solana ecosystem tokens or privacy-oriented cryptocurrencies.
Why do altcoins fall faster than Bitcoin?
The latest round of declines occurred after U.S. inflation data exceeded expectations, which exacerbated market concerns that the Federal Reserve may continue to maintain a tight monetary policy.
In September, the consumer price index rose by 3.7% year-on-year, while producer inflation accelerated to 6.3%, reinforcing the expectation that borrowing costs may remain high.
Higher interest rates will curb speculative investments, especially those in cryptocurrencies whose valuations rely heavily on future expectations.
However, macroeconomic pressures cannot fully explain why smaller tokens have experienced even more significant declines than Bitcoin.
Market depth is another important factor. During periods of selling pressure, thin liquidity means that large sell orders can significantly affect the price of altcoins, as there are fewer buy orders available at nearby prices to absorb them.
Bitcoin typically benefits from a deeper exchange order book and a broader base of institutional investors, therefore it may be less sensitive to individual transactions.
Leverage will further amplify this disparity. When price declines trigger forced liquidations, additional selling pressure may accelerate the decline in a market that already lacks liquidity.
If Bitcoin stabilizes, can altcoins rebound?
The next most important development will be whether Bitcoin can establish a sustained rebound above the range of $80,000–$82,000.
In previous corrections, both Ethereum and Solana experienced percentage declines greater than Bitcoin, as investors reduced their exposure to assets with higher volatility.
When confidence returns, this divergence may reverse, but the mere rebound in prices does not necessarily indicate that speculative demand has continuously improved.
For small tokens, derivative positions and liquidity conditions are particularly important. A decrease in open contracts may indicate that traders are reducing leverage, which could potentially lower the risk of further cascading liquidations.
At the same time, the broader demand for Bitcoin remains relevant, as the ongoing weakness of Bitcoin, as the largest cryptocurrency, may deter investors from turning to less liquid alternatives.
For now, the sell-off on October 15 indicates that altcoins are facing a dual challenge: firstly, the macroeconomic pressures affecting the entire cryptocurrency market, and secondly, their structural vulnerabilities that can magnify losses far beyond those of Bitcoin.
