This is how these 3 cryptocurrencies behave when Bitcoin falls: the data will surprise you

Ethereum, Solana, and Cardano react differently when Bitcoin enters a bearish phase. This analysis reveals patterns, risks, and opportunities that could change your perspective on altcoins during times of high volatility.

When Bitcoin (BTC) falls, the rest of the crypto market typically follows, but not all cryptocurrencies react the same way. Ethereum (ETH), Solana (SOL), and Cardano (ADA) exhibit unique patterns that reflect their technical structures, adoption profiles, and sensitivity to market sentiment. Analyzing how these altcoins behave during corrections can offer valuable insights for investors looking to navigate volatility with greater clarity.

How Ethereum, Solana, and Cardano React to Bitcoin Corrections

Ethereum, for example, acts as a magnified mirror of Bitcoin. Experts believe that ETH tends to correct more intensely than BTC due to its exposure to DeFi applications and lower institutional adoption. In February 2025, while Bitcoin fell 6% in 24 hours, Ethereum fell 20%, reflecting greater realized volatility. This difference is also attributed to its transition to Proof of Stake, which has sparked debates about security and decentralization, factors that influence investor confidence during bearish phases.

But despite these steeper declines, Ethereum has demonstrated resilience. In previous cycles, such as in 2021, the ratio ETH / BTC It hit all-time lows before rebounding 1.650% in a year. While the current environment is different, some analysts believe a new “altcoin season” could be on the horizon, especially if Bitcoin’s dominance declines and investors seek alternatives with greater technical utility.

Solana, on the other hand, is known for its speed and scalability, but also for its sensitivity to Bitcoin movementsIn February 2025, following BTC's drop below $100.000, Solana saw outflows of over $365 million in just three days. 

Indicators such as the Chaikin Money Flow and the long/short ratio showed clear bearish pressure, with predictions that SOL could fall to $187 if the trend persists. This reaction is partly due to the fact that many traders use Solana for speculative trading, which makes it vulnerable to sudden changes in market sentiment.

However, Solana has also demonstrated resilience. Its adoption in sectors such as Web3 gaming, NFTs, and DeFi platforms positions it as one of the altcoins with the greatest potential for recovery. If the market enters a rotation toward higher-utility assets, Solana could benefit significantly, especially if it establishes itself as an efficient alternative to Ethereum.

On the other hand, Cardano offers a different dynamic. ADA often acts as an emotional thermometer for the market., with reactions depending on both the technical context and the behavior of its investors. In February 2025, Cardano fell below $0,71, with over $12 million in open positions liquidated. Unlike other altcoins, Cardano showed mixed signals: while some short-term holders accumulated over 1.52 million ADA, the Liveliness indicator revealed that others continued to liquidate their positions, reflecting fear and uncertainty.

Technically, Cardano's performance is closely tied to Bitcoin's performance, but also to internal factors such as institutional adoption, the development of its ecosystem, and the evolution of its smart contract platform.

What the data says

The correlation between Bitcoin and altcoins is high, but not linear. Ethereum, Solana, and Cardano don't just follow BTC's direction: in many cases, they amplify its movements. This amplification can be due to technical factors, such as liquidity in spot and derivatives markets, or emotional elements, such as the collective fear spreading on social media and trading platforms.

In the case of Ethereum, its role as infrastructure for DeFi and NFTs makes it an asset more exposed to leverage cycles. When Bitcoin falls, liquidations on platforms like Aave or Compound can trigger forced sales of ETH, intensifying downward pressure. Furthermore, its smaller presence on institutional balance sheets makes it more vulnerable to capital rotation toward assets considered "safer."

Solana, used by traders for high-frequency trading, responds quickly to changes in sentiment. Its network has faced outages in the past, raising questions about its stability during times of high demand. Still, its developer community continues to grow, and projects like Helium and Render Network have migrated to Solana due to its efficiency.

Cardano, on the other hand, has a more patient investor base, but is also more reactive to technical signals. Its ecosystem progresses at a slower pace, causing frustration in some market sectors. However, its academic focus and commitment to decentralization make it an attractive option for those seeking long-term projects.

When Bitcoin loses ground, altcoins can take the lead

Amidst the volatility and declines in the cryptocurrency market, especially when Bitcoin loses ground, an interesting window often opens for those who know where to look. While Bitcoin's decline often drags down other digital currencies, it can also be the perfect moment for some altcoins to shine and take the lead.

Historically, when Ethereum's relative value against Bitcoin declines, it's usually a sign that a period is approaching where other cryptocurrencies, such as Solana or Cardano, may outperform Bitcoin. This happens because, at such times, Bitcoin's influence on the market diminishes and activity on alternative networks, where developers are more active in creating new solutions, increases.

For those who want to take advantage of these opportunities, it's important to observe certain indicators that reflect market movement, such as trading volume, capital flow off exchanges, interest in derivatives contracts, and asset accumulation patterns. But it's not enough to look solely at the crypto market; it's also key to understand the global economic landscape. Factors such as interest rates, inflation, and regulations can change investor sentiment and their willingness to take risks.

For experts, diversifying and investing in altcoins with solid foundations and a clear vision is a smart strategy in these times of high volatility. In this context, Ethereum, Solana, and Cardano offer different but complementary offerings that can adapt to different investment styles and objectives, helping to balance risks and capitalize on opportunities.

Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.