Why does Bitcoin seem to have a high influence over other cryptocurrencies? - page 2.

Docnaster

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Quote from: Superdoctor on July 21, 2022, 02:30:06 PM

But being that a product can be the first of its kind to be made (just like Bitcoin) and other companies may decide to produce similar product;( just like alts) but that doesn’t mean the original product price and value will always affect others. So why does Bitcoin have such a big influence on other alternative cryptocurrencies.

Going by your example of a product and it's alternative. It does not hold same for bitcoin. But I will try yo use the product name to explain to you why bitcoin leads and others follow.
Let us use Coca-Cola company as example. Let us say that the Coca-Cola company is the cryptocurrency, coke is bitcoin while other Coca-Cola products are altcoin. If coke is banned, the Coca-Cola company sales will drop drastically even if other drinks are available. Coke is the mother and face of Coca-Cola, but if coke is banned, it will not affect the peak milk company because they are not related.

Bitcoin is the mother and father of cryptocurrency, if the parents didn't provide food, both the parents and the children will starve.

NotATether

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Quote from: Superdoctor on July 21, 2022, 02:30:06 PM

Over the years, I have noticed that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, its expected that altcoins go up in price shortly after. Presently as bitcoin price reduced other altcoin prices was affected too. Fact is that Bitcoin has the most secured network and it was the first among others. No doubt some alt coins was made of bitcoins clone.

It is primarily because of the traders rather than the hodlers.

They group all cryptocurrencies in one category, thus when one big cryptocurrency makes very high gains (e.g. BTC), they buy up the other big cryptocurrencies, and it has a kind of knock-on effect on the market.

CryptoHeadlineNews

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One reason why other coins follow suit in the fall in price with Bitcoin is that Bitcoin is an important trading pairs to all coins on exchanges, and whatever affect it's price, it is likely to affect others, since it is the coin with the most market cap and mother coin to which others now exist

uneng

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Let's say bitcoin is the main representant of cryptocurrency sector, but not the only member of this sector. So, when people develop interest for bitcoin, it's normal the whole sector is affected positive as well indirectly, and that is when we see the impact and influence of bitcoin over other cryptocurrencies.

It's like a very popular shop localization. People go to the area for that shop in special, but every other businesses around will be benefited as well by that popularity, since people will cross by them and consequently some bucks will drop on their pockets too, although they aren't the main reason why people are there. Somehow it's what happens with altcoins.

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It is the one that gave way to the emergence of the term altcoins. If bitcoin haven't come into existence, there could've never been any altcoins. There is a need for a platform that has the ability to eliminate the third party involvement.

Satoshi tossed it through the innovative blockchain technology. Through this Bitcoin blockchain got developed and started to stay dominant in the market. Following bitcoin we started to see the development of more number of altcoins. This is the reason why bitcoin have got high influence over other cryptocurrencies.

fiulpro

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- We can say that bitcoins is unique but we can't say that other Altcoins are since they are made over the concept of Bitcoins making them variable yet same.
- Bitcoins was the first crypto ever, Altcoins comes and goes but it's Been stron since 2009
- Most trading pairs are pegged against bitcoins therefore the effect is synergistic if one falls the other does too
- It has high amount of profit
- Amazing crypto for trading
- Most people here as well are paid in Bitcoins, the amount of dominance in the market is excellent for bitcoins

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Bitcoin doesn't have a totally systematic and direct effect on the market of altcoins, and if one is attentive enough, one can see major differences. Apart from there being many altcoins doing their own, so to speak, and rising or falling regardless of the market situation, there are also major differences with the top coins. For example, even at a current adjusted growth over the last 7 weeks (it was higher a couple of days ago), BTC grew by 11.4%, whereas Ethereum grew by 31.4%. They both grew, sure, but the difference is immense. There was also a notable difference in early 2018, when Bitcoin was already falling fast from its ATH, while Ethereum reached its own in the middle of January and got pretty close to it at the end of January again. Bitcoin, as that time, had already lost almost half of its ATH value.
But overall there's a strong correlation between Bitcoin and top altcoins because they are often traded in pairs, because Bitcoin is #1 by marketcap, and because this marketcap is a very big share of the total market.

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One of the main reasons: Many humans & possibly bots are contributing energy to power them up. It's quite similar to why certain coin developers choose certain names that will be more commonly mentioned in the future by many people. For example "Hurricane Coin" because of possible increase in hurricane in the future due to increase in extreme weather conditions. As the names related to Bitcoin/crypto are mentioned, coins tethered/connected to Bitcoin with similar names are equally powered up.

You can easily move the price of Cryptocurrencies if you're intelligent enough to combine certain persuasive words with the terms that link crypto together. I doubt anyone can do this presently as people have become too weak and dumb to succeed.

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Altcoins are completely dependent on bitcoin, which is the undisputed leader in all crypto markets.
bitcoin is the most widely used and most popular and also has the largest capitulation, and when the price of bitcoin falls, altcoins fall even more.
so diversification in the cryptocurrency world is a big illusion, and the sooner you understand this, the better for you, because you will be able to fully invest in real signals, the bitcoin revolution and the rest is just noise.

GreatArkansas

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Quote from: Superdoctor on July 21, 2022, 02:30:06 PM

Over the years, I have noticed that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, it’s expected that altcoins go up in price shortly after.
(....)

One of the reasons why I am avoiding a lot of altcoins these days, the percentage when the market recovers are really far from Bitcoin. I also believe that this is the power of having a high market capitalization.
If you compare to other altcoins, the percentage of dumps when whole market is dumping is very huge to altcoins and when market recovers, other altcoins pump is not too huge compared to Bitcoin.

TravelMug

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It's because:

1. Bitcoin is the prime mover of cryptocurrency, so obviously it has dominated the market, and so with that it has influence every crypto that we have right now.

2. There is a symbiotic relationship between bitcoin/altcoin. That's why all tradings are BTC/X altcoin.

Darker45

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There's an overall sentiment of the crypto market and no other coin represents the market but Bitcoin. So if there's something that affects Bitcoin, it must also affect altcoins to a significant extent. There's no reason why altcoins are insulated from factors that affect Bitcoin. After all, they share the same crypto ecosystem.

As a matter of fact, even macroeconomics affect Bitcoin. So if Bitcoin is affected by this factor then altcoins will also be affected.

Silberman

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Quote from: Superdoctor on July 21, 2022, 02:30:06 PM

Over the years, I have noticed that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, it’s expected that altcoins go up in price shortly after. Presently as bitcoin price reduced other altcoin prices was affected too. Fact is that Bitcoin has the most secured network and it was the first among others. No doubt some alt coins was made of bitcoins clone.
But being that a product can be the first of its kind to be made (just like Bitcoin) and other companies may decide to produce similar product;( just like alts) but that doesn’t mean the original product price and value will always affect others. So why does Bitcoin have such a big influence on other alternative cryptocurrencies.

There are simply too many reasons for why this is the case, a great deal of the coins in the market do not really offer any improvement over the code of bitcoin and as such they move very similar to bitcoin, the market dominance of bitcoin is very high and in fact it is even higher than what we believe, a great deal of coins only have a trading pair with bitcoin which makes them susceptible to its price movements, a great deal of altcoins are terrible and they have no future and as such they are entirely dependent on the way bitcoin moves, there are even more reasons but I suppose you get my point.

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Quote from: Superdoctor on July 21, 2022, 02:30:06 PM

Over the years, I have noticed that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, it’s expected that altcoins go up in price shortly after. Presently as bitcoin price reduced other altcoin prices was affected too. Fact is that Bitcoin has the most secured network and it was the first among others. No doubt some alt coins was made of bitcoins clone.
But being that a product can be the first of its kind to be made (just like Bitcoin) and other companies may decide to produce similar product;( just like alts) but that doesn’t mean the original product price and value will always affect others. So why does Bitcoin have such a big influence on other alternative cryptocurrencies.

Since bitcoin dominates the whole crypto market, whatever its movement affects the whole coins in the market too. When bitcoin price consistently dumps, suddenly the whole crypto market becomes bloody. And once bitcoin price surges and skyrocket, the rest of altcoins follow and end up with a positive price too. We will all know when the crypto market is bullish because the first sign shows directly from the price of bitcoin.

qwertyup23

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Quote from: Superdoctor on July 21, 2022, 02:30:06 PM

Over the years, I have noticed that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, it’s expected that altcoins go up in price shortly after. Presently as bitcoin price reduced other altcoin prices was affected too. Fact is that Bitcoin has the most secured network and it was the first among others. No doubt some alt coins was made of bitcoins clone.
But being that a product can be the first of its kind to be made (just like Bitcoin) and other companies may decide to produce similar product;( just like alts) but that doesn’t mean the original product price and value will always affect others. So why does Bitcoin have such a big influence on other alternative cryptocurrencies.

The reason is always the price- more and more people are using and purchasing BTC which affects its price on the market. Being the first cryptocurrency ever made, it already has established its name on the market. Think of it as the first phone company ever made. No matter what happens, you are at least guaranteed, by some security, that many users would somehow trust it due to its influence world-wide to the point that there are countries using it as legal tender.

While this may be the case, also remember that other cryptocurrencies depend their price on the price of BTC. Though there may be exceptions, this is considered the general rule.

Rigon

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Bitcoin is the very first cryptocurrency to exist and is the cryptocurrency king.All markets are regulated based on these coins.We have noticed that every time Bitcoin goes down but all coins go down in price.Again whenever the price of bitcoin started to rise since then but all ALTS coins started to rise.This is a good relationship between the markets for Bitcoin.And for every coin there will be a Bitcoin effect.

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Quote from: NeuroticFish on July 21, 2022, 03:16:29 PM

This has been answered many times, OP should really do some search.
One of the reasons is that a vast majority of altcoins is bought/sold (only) for bitcoin. This makes them very dependent on bitcoin price in USD.

That's a very important reason. Another one is that all the legislation is made for bitcoin first, or for all cryptocurrencies but with bitcoin in mind.
Any legal problems bitcoin faces will impact other cryptocurrencies sooner or later. It's the same with financial products. When a bitcoin ETF is finally approved the next logical step will be to create one for some of the larger altcoins.

Stella Mese

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I've always noticed that when bitcoin goes down, the price of altcoins goes down and when bitcoin goes up, everything goes up too. but in my opinion it is caused by people's psychology, because I also when trading on altcoins always pay attention to bitcoin, whether it will go down or up, and it is proven that the ups and downs of prices always follow bitcoin.

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For the same reason most markets move in tandem - the financial sectors are intertwined and they all generally move in the same direction, despite slight deviations individually.

You can look at the market caps of each currency if you want to determine relative power over the crypto market. For obvious reasons, Bitcoin has the most control.

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Even before bitcoin, there were different approaches and findings on financial transactions over cryptography. Nothing worked out, and the innovation of bitcoin made the change. Initially there is no big support and acceptance, but the technology backing made it more stronger.

Slowly it gained it's value through the demand to supply approach. Later the involvement of common people started to take place considering it an investment and store of value. Following this more cryptocurrencies came into existence keeping bitcoin as the reference.

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