In the Crypto Assets market, we often observe a phenomenon: when the prices of major Crypto Assets such as Bitcoin (BTC) and Ethereum (ETH) significantly fall, many small digital assets (commonly known as "alts") also experience a simultaneous decline. There are several key factors behind this phenomenon:

First of all, BTC and ETH, as the cornerstones of the market, often dominate the market sentiment with their price movements. When these two major cryptocurrencies experience a significant fall, investors usually quickly withdraw from the less liquid small digital assets to reduce their risk exposure.

Secondly, the liquidity pools of most small projects are often maintained by the same group of institutional investors or market makers. When the market experiences severe fluctuations, these institutions may collectively adopt contraction strategies, reducing the supply of liquidity, resulting in multiple projects in the market seemingly "collapsing" at the same time.

Finally, the risk control mechanisms of exchanges also play an important role. In extreme market conditions, certain exchanges may initiate automatic risk control measures, forcibly closing the positions of high-leverage users, which further exacerbates the downward pressure on prices, leading to a simultaneous plunge in multiple digital assets.

Understanding these market mechanisms helps investors better assess risks and develop appropriate investment strategies. In the highly correlated Crypto Assets ecosystem, diversified investment and moderate leverage are particularly important.