They follow bitcoin it is simply because most altcoins are in bitcoin's exchanger or market. When the price of bitcoin goes up the altcoins also therefor when bitcoins are dumping they also does. But some altcoins are in ethereum or tether exchanges that's hwy they are not affected in bitcoin's status.
Bitcoin is the king of crypto world and the rest of the cryptos are like ordinary people. People do what their kind ordered. Most of the people want to invest in bitcoin because of the reliability and authentication while Altcoin possess many scams. But know many people invest in Altcoin due to huge drop in bitcoin price. Some cryptos are growing and do not follow bitcoin.
Topic: Why do altcoins follow bitcoin? - page 6. (Read 1328 times)
It's a difficult question, actually. Some alts are moving totally independently from BTC price. Sometimes people just trade vs USD value. Some people dump their alts for BTC. And this winter BTC and alts were going up together. So it's no that simple.
Might be people consider to sell the coins when the bitcoin price falls because that the whole crypto market is manipulated by whales, who holds the high amount of coins, they might sell the coins in bulk which causes the huge fall on the prices, i personally feels that as bitcoins is the first coin, all the other altcoins follow the same trend.
As according to my point of view the reason behind to follow the BTC by altcoins is that the BTC is the first cryptocurrency which comes into the existence.
And the holders have more trust on it as compared to the Altcoins and BTC is the market holder it has the power to fluctuates the market.
And the holders have more trust on it as compared to the Altcoins and BTC is the market holder it has the power to fluctuates the market.
Basically everything in crypto is paired with Bitcoin. The analogy earlier that crypto is like a tree where Bitcoin is the trunk, Ethereum and other top 9 coins are like the branches, then the rest of the alts are twigs and leaves is very appropriate.
If the tree trunk is not healthy, the entire tree is not healthy.
Just watch the volume on BTC chart and you'll know where the market is heading.
If the tree trunk is not healthy, the entire tree is not healthy.
Just watch the volume on BTC chart and you'll know where the market is heading.
Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?
You can see that the adjustment of bitcoin prices greatly affects the altcoin and the market, only a small fluctuation of the bitocin price can cause the market to swing and the price of altcoin can be greatly reduced. So when you trade altcoin you always have to keep track of bitcoin prices, I advise you to only trade when the bitcoin price goes up or is rising. As the reason of high marketcap percentage of overall, it has relation with others but now it is getting lower marketcap so it will be less dominant according to previous timeline.
Because most altcoins are valued for BTC, the fluctuation of BTC has a direct impact on altcoin. Obviously all markets need healthy adjustment after a steady rise. The current decline is not too much of a worry, though some people will probably panic and sell off. If Bitcoin prices can stay above $ 6,000, things will become quite interesting. Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?
When you trade altcoin you always have to keep track of bitcoin because you can see that the market is constantly fluctuating at bitcoin prices, only a small bitcoin adjustment can make the market turn around and hard to guess. The price of bitcoin is always dominated by sharks, psychological panic fear, the market is in the down trend so when trading you need to always observe bitcoin prices.
As the reason of high marketcap percentage of overall, it has relation with others but now it is getting lower marketcap so it will be less dominant according to previous timeline.
Bitcoin is the King of cryptocurrency for now, and it is as a result of it successes that other altcoins where thought of and conceived; thus, BTC will always be a benchmark. And because BTC is king now, effects on it will have an effect on the other coins in the market. For a more vivid explanation, take for example the current trade war between the US and China at the moment, they are warring between themselves, but because these are the two largest economies in the world, especially with regards to export, other countries and their respective currencies will feel the heat. So unless the countries can find a way to be less dependent on China and US, the trend will continue. Thus, same applies to the altcoins, new or old altcoins have to find a way to grow thier own value and usefulness in the blockchain industry in order to be more independent. For example Ethereum is trying to have multiple uses for its token/coin like the smart contract, thus, people can build some on that, and they are not all that tied to BTC.
Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?
There are many reasons for that, to begin with this is the market of cryptocurrencies and in order to buy most alts you need to first buy bitcoin, so if people are selling bitcoin then that means that less money is in the market of alts, also if you look at the market dominance of bitcoin it is almost 40%, while that is lower than in the past any movement of bitcoin influences the market greatly and alts cannot avoid being affected by it.This is how the trend works and of course bitcoin have the highest market cap among those coins so if bitcoin gets dump the market cap will decrease along with all the coins. Well maybe there's some that didn't follow and have a good pump but this is rarely get to happen.
Until now the trend still depend from how bitcoin goes in the market, most of those alts are still working beside bitcoin and they are riding with the trend, it will take some time before the market will be like stocks where the assets have its own venue and will move according to its progress and gained supports from the community that they cater.
The entire market is governed by sentiments; so everything about cryptocurrency is linked to the pioneer ( Bitcoin). To the ordinary people that don't know much about cryptocurrency, the only thing they know as "internet money" is Bitcoin. Therefore it is normal to see every other coin being influence by Bitcoin.
Most of the altcoin price is completely fluctuating because only when Bitcoin price starts decreasing, see whenever the price starts increasing automatically the price of altcoins will start increasing. So it means Bitcoin is a father of all cryptocurrency because it is a major currency which is currently ruining in cryptocurrency world.
because bitcoin is the mother of cryptocurrency. it is the most successful coin & it has the highest marketcap. so all altcoins follow bitcoin.
This is how the trend works and of course bitcoin have the highest market cap among those coins so if bitcoin gets dump the market cap will decrease along with all the coins. Well maybe there's some that didn't follow and have a good pump but this is rarely get to happen.
It is just bassed on people sentiment, it is not because the price is sticked with bitcoin's pattern, that is just a theory.
Well, the price is only affected because of the price in BTC, but it does not affect much as many people think
in accordance with the laws of the market economy if the amount of supply is greater than the need then the price or value will tend to go down otherwise if the supply is less than the need then the price will tend to rise. Well, the price is only affected because of the price in BTC, but it does not affect much as many people think
Bitcoin is the main currency in cryptocurrency market its simple answer King is Bitcoin.
bitcoin is the father of all altcoin. most altcoins develop because they are influenced by bitcoin. so, bitcoin actually affects the development of altcoin, because of that, when bitcoin prices fall, most altcoins will also fall. it is also influenced because bitcoin is the platform of some altcoin.
Bitcoin is the main currency in cryptocurrency market its simple answer King is Bitcoin.
bitcoin is the father of all altcoin. most altcoins develop because they are influenced by bitcoin. so, bitcoin actually affects the development of altcoin, because of that, when bitcoin prices fall, most altcoins will also fall. it is also influenced because bitcoin is the platform of some altcoin.
Bitcoin is the main currency in cryptocurrency market its simple answer King is Bitcoin.
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