How much does Bitcoin affect other cryptocurrency? - page 4.

Reid

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Quote from: CYBER_COWBOY on May 11, 2023, 04:54:46 AM

I am follow an account on Instagram that shows how much bitcoin and some other cryptocurrency´s are worth every 24 hours. and something I have noticed is almost every time bitcoin goes up many other also go up.
And when bitcoin goes down many other also go down, of course this don´t apply everyday and all currency´s.

That was the case now unlike before. Bitcoin goes up, altcoin go down and vice versa. But when the stablecoins were created it became different Bitcoin up, altcoin goes up too.

Quote from: CYBER_COWBOY on May 11, 2023, 04:54:46 AM

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.

Because that might not be the case on some season. Bitcoin could go up, but it doesn't mean all alts will be dragged by it. You should also try to monitor the altcoin that you are buying if it behaves like Bitcoin whenever it fluctuates or if there is a history where it doesn't move at all whenever Bitcoin moves.
It doesn't always mean it will go the same way as Bitcoin just because you heard or read it from someone else.

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Quote from: drwhobox on May 14, 2023, 07:23:14 PM

Quote from: southerngentuk on May 14, 2023, 03:14:58 PM

The prominence of bitcoin and its being the first cryptocurrency with a large market cap go without saying when it affects the entire cryptocurrency market. The price movements of altcoins closely resemble Bitcoin's performance, and Bitcoin's market sentiment often spreads to other cryptocurrencies. This correlation is closely tied together by factors such as market sentiment, investor behavior, and the liquidity provided by Bitcoin. So, once the price of bitcoin rises, it can cause altcoins to rise quickly, and vice versa, when bitcoin falls, it can also cause altcoins to fall deeply.

Bitcoin was created before any other cryptocurrency, and bitcoin is the perfect technology to use against fiat. Bitcoin price definitely affects other cryptocurrencies because most of people trade other cryptocurrency against bitcoin and bitcoin holds the largest share in the cryptocurrency market. There are other major factors but I think this one is one of the major reason why bitcoin affect other cryptocurrency.

It was created to be a perfect alternative, it is not against fiat, as these false propaganda has led the government never to become friendly with bitcoin. Although the market has more than 20,000 coins each, but so far, no alternative currency can be better than bitcoin. It can be said that bitcoin is old, old and slow, but it is still superior in terms of security and privacy, and that is why it is always the choice of many people. While altcoins are just a pump and dump market used for speculation and don't offer any benefit or use case. Although people seek quick wealth from altcoins, in the long run, they always look to bitcoin, it remains the top choice of people.

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Quote from: drwhobox on May 14, 2023, 07:23:14 PM

Quote from: southerngentuk on May 14, 2023, 03:14:58 PM

The prominence of bitcoin and its being the first cryptocurrency with a large market cap go without saying when it affects the entire cryptocurrency market. The price movements of altcoins closely resemble Bitcoin's performance, and Bitcoin's market sentiment often spreads to other cryptocurrencies. This correlation is closely tied together by factors such as market sentiment, investor behavior, and the liquidity provided by Bitcoin. So, once the price of bitcoin rises, it can cause altcoins to rise quickly, and vice versa, when bitcoin falls, it can also cause altcoins to fall deeply.

Bitcoin was created before any other cryptocurrency, and bitcoin is the perfect technology to use against fiat. Bitcoin price definitely affects other cryptocurrencies because most of people trade other cryptocurrency against bitcoin and bitcoin holds the largest share in the cryptocurrency market. There are other major factors but I think this one is one of the major reason why bitcoin affect other cryptocurrency.

Besides the fact that most of the altcoins trade against Bitcoin and the position of Bitcoin as the biggest coin by market capitalization. It could also have something to do with the influence of Bitcoin over the total value of the Cryptocurrency market, in a sense that, some traders may use the change of that metric to position themselves while doing their operations. If Bitcoin loses value, because it's dominance, it means the the total market value descents faster than it would if other currencies like Ethereum or Litecoin did. A green day for Bitcoin can be translated to a green day for other coins, since the increase of total value of the market may make traders feel bullish.

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Quote from: southerngentuk on May 14, 2023, 03:14:58 PM

The prominence of bitcoin and its being the first cryptocurrency with a large market cap go without saying when it affects the entire cryptocurrency market. The price movements of altcoins closely resemble Bitcoin's performance, and Bitcoin's market sentiment often spreads to other cryptocurrencies. This correlation is closely tied together by factors such as market sentiment, investor behavior, and the liquidity provided by Bitcoin. So, once the price of bitcoin rises, it can cause altcoins to rise quickly, and vice versa, when bitcoin falls, it can also cause altcoins to fall deeply.

Bitcoin was created before any other cryptocurrency, and bitcoin is the perfect technology to use against fiat. Bitcoin price definitely affects other cryptocurrencies because most of people trade other cryptocurrency against bitcoin and bitcoin holds the largest share in the cryptocurrency market. There are other major factors but I think this one is one of the major reason why bitcoin affect other cryptocurrency.

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Quote from: southerngentuk on May 14, 2023, 03:14:58 PM

The prominence of bitcoin and its being the first cryptocurrency with a large market cap go without saying when it affects the entire cryptocurrency market. The price movements of altcoins closely resemble Bitcoin's performance, and Bitcoin's market sentiment often spreads to other cryptocurrencies. This correlation is closely tied together by factors such as market sentiment, investor behavior, and the liquidity provided by Bitcoin. So, once the price of bitcoin rises, it can cause altcoins to rise quickly, and vice versa, when bitcoin falls, it can also cause altcoins to fall deeply.

This happen because Bitcoin has direct impact on the whole cryptocurrency. When Bitcoin is doing well it can attract new investors which can even give new investors to other cryptocurrency which can give an increased demand to other cryptocurrency. Although some altcoin market move independently in most cases, they are still affected when Bitcoin become bullish because the hype of Bitcoin is spread out to the entire cryptocurrency ecosystem.

southerngentuk

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The prominence of bitcoin and its being the first cryptocurrency with a large market cap go without saying when it affects the entire cryptocurrency market. The price movements of altcoins closely resemble Bitcoin's performance, and Bitcoin's market sentiment often spreads to other cryptocurrencies. This correlation is closely tied together by factors such as market sentiment, investor behavior, and the liquidity provided by Bitcoin. So, once the price of bitcoin rises, it can cause altcoins to rise quickly, and vice versa, when bitcoin falls, it can also cause altcoins to fall deeply.

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Quote from: Obito on May 14, 2023, 09:53:56 AM

Quote from: Mr. Magkaisa on May 12, 2023, 09:01:49 AM

And when the value of bitcoin falls, the value of other cryptocurrencies also fall, meaning that the impact of Bitcoin is strong regardless of its price in the market.

Not most of the time, there are some altcoin that continues to go up even when bitcoin is going down during altseason but yes I can agree that the impact of bitcoin is strong given that the down times can be an indicator for altseason.

The movements of altcoins are not exactly as the ones you can find in bitcoin, but they are extremely similar, if you take a look at the moment when we shift from a bull market to a bear market you will see that very few altcoins will still go up in value one month after bitcoin began to go down, the majority react very quickly to the influence of bitcoin and they go down just a few days or weeks after bitcoin has began to do so, demonstrating once again the high correlation that bitcoin and altcoins have.

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This is true that all other cryptocurrencies are closely related to the bitcoin so whenever the price of bitcoin effected by some issues then indirectly the price of other coins will also effected. Bitcoin cannot go to zero but unfortunately if it occurs then automatically all the crypto coins will get their position at zero.

As the market is going towards negative so the price of each and every currency will go down but bitcoin will not be as low as its current price is very higher as Compared to the other currencies of the crypto Industry. So relation of bitcoin is directly proportional to all the others currencies of market we should keep eye on Bitcoin's price if it is green all other coin will also be green.

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Quote from: Mr. Magkaisa on May 12, 2023, 09:01:49 AM

And when the value of bitcoin falls, the value of other cryptocurrencies also fall, meaning that the impact of Bitcoin is strong regardless of its price in the market.

Not most of the time, there are some altcoin that continues to go up even when bitcoin is going down during altseason but yes I can agree that the impact of bitcoin is strong given that the down times can be an indicator for altseason.

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I think Bitcoin is so influential towards other cryptocurrencies especially in terms of market prices. Well, indeed there's this thing called altcoin season wherein prices of other coins are increasing in contrast with the market price behavior of Bitcoin but most of the time, Bitcoin's price action triggers either uprise and downfall of other crypto's value. One good example is previous ATH of Bitcoin wherein most of cryptos' also reached ATH and likewise when correction occured same thing happened with others. But in terms of general usage, there is I think where parallelism ends. Not all cryptos are being used in a platform even if Bitcoin is most of the time an option.

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Quote from: CYBER_COWBOY on May 11, 2023, 04:54:46 AM

Are cryptocurrency holding each other hand in hand in someway or are they independent. It seems that they share something with each other that I don´t know anything about.

I don't think that crypto markets are independent, there is definitely a high correlation between bitcoin and all the other crypto coins. The only difference I would say is that bitcoins are the driving force here. On one side you have bitcoin and maybe Ethereum and on the other side all the alt coins. A big shift in the alt coin market will lead to a price change of BTC and ETH, and vice versa. The connection that all these crypto coins share are the same type of investors. Someone who holds alt coins is very likely to hold bitcoins as well. And when the investors start selling one coin there is a high chance they will sell their other coins as well. For most investors crypto currencies is only a part of their portfolio and there is always reshuffling going on depending on the news and future outlooks.

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Most altcoins are affected by the market trend of Bitcoin. We have seen in history that whenever Bitcoin gets hyped, altcoin follows. Aside from that people who are into altcoins are using the popularity of Bitcoin to get noticed. Furthermore, Bitcoin seems to be the measuring standard of altcoin when it states its features.

Bitcoin also affects people's trust in the whole cryptocurrency Industry. Since Bitcoin is the most dominating cryptocurrency, the altcoin market also suffers when it losses its credibility due to FUD and negative news.

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Quote from: ektotanes on May 12, 2023, 08:06:46 AM

Bitcoin really affects all other cryptocurrencies. Bitcoin is the main one here, and altcoins just follow it.

Well said, generally speaking I agree with this statement. For example when Bitcoin is declining in value, altcoins generally do a lot worse. Likewise when it is increasing altcoins generally do a bit better.

Quote from: ektotanes on May 12, 2023, 08:06:46 AM

As you understand, there is no point in holding a bunch of coins, you only need bitcoin Cool

There is generally no point unless you trading/speculating short-term. For example in early 2021 there was a good opportunity to accumulate more satoshis during a 3-5 month period when numerous altcoins were outperforming Bitcoin by up to 10x, even 100x for some. But otherwise long-term 99.99% of these altcoins aren't able to keep up with Bitcoin. There are a few exceptions that continue to do so, but they are a minority and still within their first 4-6 years of existence, so it's very much unproven whether any altcoins at all will outperform Bitcoin over a 10 year+ period.

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Quote from: ItsCrafty on May 12, 2023, 07:59:39 AM

Quote from: KingsDen on May 11, 2023, 06:41:27 PM

Bitcoin is the king and when the king sneezes, everyone shivers. When bitcoin is in the bear lane, other coins (altcoins) follow and vice versa.
That is why myself and many other people do not believe in diversification in cryptocurrency. You cannot hold bitcoin and want to diversify in altcoins. It is the same risk and even worse risk.
If you invest in bitcoin or altcoin then diversify to gold, Real Estate etc.

Again, Op I do not think you want to invest in a stable altcoin (USDT). It will not give you RoI.

I agree with you that Bitcoin is the king of all cryptocurrency markets,but one thing I have noticed,That when the price of bitcoin falls, if bitcoin falls 10 percent, all altcoins fall 20 to 25 percent,And this is beyond my understanding

That is because the altcoins can easily be manipulated unlike bitcoin that has higher volume, market cap and more decentralized. It is because of the ability if altcoins to increase more than btc or decrease more than btc that makes people gamble with them.

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Diversification is an excellent strategy in cryptocurrency.This is how you divide your capital into different cryptocurrencies.People adopt this method to protect their assets from loss,because investing in a single coins is risky.If a project fails, all your capital can be lost.

The advantage of investing in different cryptocurrencies is that if unfortunately one of the coins goes to zero, the rest of your capital is protected,And if one or two of the remaining crypto-currencies increase in value, then your loss will be covered and your profit will also be made.

It is very difficult to see where bitcoin is in -10% and another altcoin is in +25%. That is why I have said that such diversification is not necessary if you are a bitcoin believer because is not gona go to zero. It is whe you are a shitcoiner you will be talking about coin going to zero.

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Literally every other cryptocurrency follows the price trajectory of bitcoin. We still see 4 year halving cycles with bitcoin from bear to bull & repeat. Pretty much every other coin follows bitcoin, it’s probably because there are so many BTC pairings on exchanges. People try to duck & dive in & out of bitcoin to take advantage of alt swings. It’s going to be a while before bitcoin stops controlling the oath other coins take.

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All other coins and tokens that are listed on the exchanges are pegged to BTC. Almost all altcoins can be traded against BTC which is why it has the biggest volume and dominance in the market.

All other altcoins are priced in satoshis so when BTC is dumped the value of those altcoins also falls.
What happens in a way though is that altcoins' buy orders are filled.

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I think it impacts each other and I talked about this before. I know that people think when bitcoin goes down the altcoins goes down as well or when bitcoin goes up then altcoins go up as well, millions and millions of people trust that is the true thing but the reality is that we are not going to end up with that at all.

I think it is possible that we are going to end with them all moving together, they all go up together and go down together. Where can we understand this? We can look at the price and check the drops at the same time, if you could have two screens checking the price you will see that there are moments when people sell their bitcoin to drop the price, they are also selling their ethereum as well, or any other coin.

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Quote from: cydrix on May 12, 2023, 09:25:50 AM

Please remember that Bitcoin is the first cryptocurrency on the market. All of the other cryptocurrencies that you see today were developed after bitcoin found success. Therefore, whether or not the cryptocurrencies follow bitcoin is not up for discussion.

I believe that bitcoin is the primary driver of the entire altcoin market. and closely resembles its course. However, there are a few glaring outliers. The impact was initially 100%, but after the introduction of stablecoins, it has somewhat decreased.

Also most regular people don't even know about anything besides Bitcoin, lol. So it's not surprising that it's Bitcoin that drives the whole market and not the other way around.

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Quote from: Mr. Magkaisa on May 12, 2023, 09:01:49 AM

- I just noticed that since Bitcoin is the most popular and useful in the world, when its value increases in the market, most of the altcoins that are often included in the top 100 list also increase their prices.

And when the value of bitcoin falls, the value of other cryptocurrencies also fall, meaning that the impact of Bitcoin is strong regardless of its price in the market.

I agree with you that Bitcoin has a significant impact on the entire crypto market. So When Bitcoin's price increases, many investors and traders may shift their focus to Bitcoin which can lead to a decrease in trading volume and demand for altcoins. As a result, the prices of altcoins can decrease.

On the other hand, when Bitcoin's price decreases, some investors may view altcoins as a potentially more profitable investment and may shift their focus from Bitcoin to altcoins. This increase in demand for altcoins can lead to an increase in their prices.

It's important to say that different altcoins can be impacted to varying degrees by Bitcoin's price movements. Some altcoins may be more closely correlated with Bitcoin due to similarities in technology, while others may have their own unique factors and couldn't be affected by bitcoin's movement.

cydrix

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Please remember that Bitcoin is the first cryptocurrency on the market. All of the other cryptocurrencies that you see today were developed after bitcoin found success. Therefore, whether or not the cryptocurrencies follow bitcoin is not up for discussion.

I believe that bitcoin is the primary driver of the entire altcoin market. and closely resembles its course. However, there are a few glaring outliers. The impact was initially 100%, but after the introduction of stablecoins, it has somewhat decreased.

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