Topic: How much does Bitcoin affect other cryptocurrency? - page 5. (Read 757 times)

Bitcoin is the key points of the crypto world, but USDT is just a stable coin and as such you will not get the same performance as if you invested in bitcoin or ethereum, The value of altcoins is highly correlated with the
 increase/decrease of Bitcoin. USDT is a stable coin and the price is supposedly pegged to the US dollar so even if there is an increase or decrease in bitcoin price, it doesn’t affect the value of USDT like that. And but it all depends on each coin they follow is still bitcoin.USDT coin is stable. The price of bitcoin is high then the price of ETH as well as other altcoins will also rise, even more exponentially than bitcoin, and vice versa.

    -   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 have also considered that holding Bitcoin is actually more than enough because other cryptocurrencies are also not necessarily better than Bitcoin so for now I am no longer so concerned with altcoins although apart from Bitcoin I still hold stablecoins to maintain the value of my assets when I haven't used them to spend any other asset I want. I mean, for now I'm just more concerned with Bitcoin and not giving so much headache to altcoins or anything other than Bitcoin, (except stablecoins).

currently bitcoin is indeed very influential for other altcoins, because every bitcoin movement increases, other altcoins must follow the flow of bitcoin, in fact they have their own values ​​and there are very many differences in each coin that is present especially coins like ETH and bitcoin which appear very much different so for investing at this time we definitely get different benefits for each coin that we hold, because they have their own characteristics, for example the USDT coin is stable and there will not be a big increase in price and like bitcoin for example, it all depends on each coin each though the stream they follow is still bitcoin.

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

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

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

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.

They don't follow each other, the altcoins follow Bitcoin, not the vice versa. And this is just a macro trend, it doesn't mean that there's no other price movements. People buy altcoins because they can jump by 50% in an hour randomly, without Bitcoin doing any significant moves. But people dismiss that altcoins just as easily crash, and in long term they all crash to zero and get delisted and forgotten when they have low volumes.

Trading altcoins is more like gambling than investing, it's a game of a bigger fool - they don't create anything valuable for society that could justify their price.

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.

Thanks for all great replies. I will check them all! 

The value of altcoins is highly correlated with the increase/decrease of Bitcoin. USDT is a stable coin and the price is supposedly pegged to the US dollar so even if there is an increase or decrease in bitcoin price, it doesn’t affect the value of USDT. As for your other question, if at the end of the 12 month duration, the price of bitcoin is high then the price of eth as well as other altcoins will also rise, even more exponentially than bitcoin, and vice versa.

USDT is just a stable coin and as such you will not get the same performance as if you invested in bitcoin or ethereum, that being said the performance that you will get out of your bitcoin or ethereum investment should be similar, however while ethereum has reached new ATHs since 2017 its ATH in terms of bitcoin has never been beaten, which means that since then bitcoin has been outperforming ethereum, making bitcoin the best choice not only as an asset but as a way to make money.

We must know that bitcoin was the first successful cryptocurrency, and it laid the foundation for the development and growth of the broader altcoin market. So the fact that altcoins often depend on Bitcoin to change the market means that their prices can be affected by Bitcoin movements. But this is also an opportunity to be able to make more profit for your account because of the potential of altcoins, if you have enough experience, knowledge, and understanding of a certain cryptocurrency.

Bitcoin is the most well-known and widely used cryptocurrency, and its price movements often have a significant impact on the prices of other cryptocurrencies. This is because many investors and traders use Bitcoin as a benchmark for the overall health of the cryptocurrency market, and also because Bitcoin is often the first point of entry for individuals who are new to cryptocurrencies.

When Bitcoin experiences a significant price increase or decrease, it can cause other cryptocurrencies to follow suit, either because investors are looking to diversify their portfolios or because they believe that the price movements of other cryptocurrencies will mirror those of Bitcoin.

However, it is important to note that not all cryptocurrencies are affected equally by Bitcoin's price movements. Some cryptocurrencies have unique features and use cases that make them less reliant on Bitcoin's performance, while others may be more closely tied to Bitcoin due to similarities in their underlying technology or market positioning.

Ultimately, while Bitcoin does have a significant impact on the broader cryptocurrency market, it is only one of many factors that can affect the prices of cryptocurrencies. Other factors, such as regulatory developments, technological advancements, and market sentiment, can also play a role in determining the performance of individual cryptocurrencies.

If you think about it, if there's a popular business that people acknowledged it's presence and there's a lot of customer then for sure some business minded would also build an business around the popular one as an alternative choice for people. Which I could say that could be compare to BTC and other cryptocurrency, they are made due to BTC presence it's like the core of the system itself which keeps this industry alive.

as we know btc is the first coin and can be said to be the pioneer of all crypto, so btc is a benchmark for an altcoin if it is going to experience a price increase but it does not rule out the increase in altcoins not as fast as btc, sometimes btc undergoes corrections quickly different from altcoins which are always frequent stuck
and if btc stops then all crypto will be memory

Very very, Any money coming into crypto from whales and institutions are going into Bitcoin first, not until Bitcoin dominance starts decreasing that's when they will start moving funds out of Bitcoin into other alternative coins. Bitcoin is the first and the best and it also has the highest volume, liquidity and etc.  

There are also other factors that makes alternative crypto performs better than Bitcoin, for example insider pumps, FOMO, etc a good one is what happened with PEpE meme coin, that crazily reach over 1 billion market cap in a bearish market.

My first point is talking about price action of bull market, when Bitcoin takes the lead, every other coins follow and when Bitcoin reach it's peak and get tired its left for the coins to do their thing, that's why even shitcoins do well in a bull market.

OP, I get where you are heading to. I know you must be wondering why bitcoin stands to be head over other Crypto currencies in the world and why is the other Crypto market dependent on bitcoin.

At first, you should know that bitcoin is the first Crypto currency to be developed and it has no central authority over it. Hence it is a decentralized blockchain.
Bitcoin so far since inception have been termed and tagged a digital gold which no other coin has succeed to have achieved.

The maximum supply of bitcoin gives it a good spot to be in the limelight and for everyone to see.

Lastly,  the demand for bitcoin surpasses every other  coin so far and running into millions on daily basis much better that other Crypto. You could imagine if these people tell their experience on good fate about bitcoin tell me why wouldn't there be a surge in price and holders vice versa as the case maybe. All these contributes to the ups and downs of the bitcoin market which also affects other Crypto market as well.

The whole crypto currency space is built around BTC. More like everything revolves around BTC and as such BTC has a lot of influencing force on other crypto currency.
To put it in the right perspective, if BTC stops existing today, the will mean the end of crypto.

Bitcoin couldn't care less about shitcoins. Bitcoin can act on its own and simply follow its way. Shitcoins, usually go for whatever platform they are running on and follow the main project. Or at least in bigger movements, the shitcoins follows. And in turn, these main shitcoins will eventually follow Bitcoin, as it was said, Bitcoin is the pioneer and therefore, it's the drive!

There is a difference if you’re looking into long term holding or investment. With bitcoin there is a guarantee that you wouldn’t be scared of holding on to coin that could dump from anytime. So the risky of holding to bitcoin is much less than those Alticoins. Alticoins do not have a long term value, we could argue that for ETH and the stablecoins but they also have same issues. Stable coins like USDT could come behind bitcoin for stability but they can also be deppeged just like what was experienced by the USDC coin this year.

The profit level due differs sometimes because some of these Alticoins tend pump to a high level if the team’s handling the project decide to create a FOMO scenario but they don’t last long because some are most tricks to lure people into investing in them and then the whales dump it by taking off there funds. Social media hype or a certain transition just like the ETH moving to POS could create a panic in the market and therefore causes its price to rise beyond bitcoin percentage rise but they all comes back to followin bitcoin.

So there’s a difference, in fact I personally don’t see investing in other Alticoins as a diversification of portfolio since the risk of losing is higher in them than bitcoin. So rather stick to a coin that guarantees you a value anytime