why does the price of Bitcoin influence other coins

galambo

sr. member

Activity: 966

Merit: 311

Quote from: qwertyup23 on February 28, 2022, 10:27:22 AM

There is a reason on why alternate coins are called "altcoins" because they simply derive their existence on the foundation that BTC built.

Lots of altcoins are present in the market- whether memecoins or usable coins. The latter are the types where they simply took the technology of BTC but they introduced improvements therein. The former are the ones that derive their value based on influence and hype- where its value is totally dependent on supply and demand (ie dogecoin influenced by Elon Musk).

One of the many reasons on why the price of BTC influence these altcoins is because they derive their value somehow on how BTC is performing in the market. That is also the reason on why BTC has the highest price of all altcoins present in the market.

Though there are thousands of alt coins in crypto market only few top 10 or 20 are capable of being declared as alt coins that are worthy for investment rest are just shit coins (that's my own opinion). Crypto market is dependent on bitcoin for price and there is only one major reason for that i.e. BTC is the founding father of this market and there is no other alt coin till date which can match BTC security and decentralization nature.

romeitaly

full member

Activity: 308

Merit: 108

Bitcoin is the first discovered cryptocurrency, that is why it is called the crypto king according to some replies here in the thread. Bitcoin dominance is the one of the reason why some altcoins are following the trend of bitcoin, and also some whales are depending on the movement of bitcoin that is why some of their holdings are being withdrawn due to the movement of the bitcoin

qwertyup23

hero member

Activity: 2268

Merit: 789

Quote from: Edith1994 on February 22, 2022, 01:26:14 PM

I really want to know why any time Bitcoin increases or go high many other coins will go high too and when Bitcoins drops many coins drops too.
is it that Bitcoin is the backbone of other coins or their is something connected between Bitcoin and other coins.

please I need explanation.

There is a reason on why alternate coins are called "altcoins" because they simply derive their existence on the foundation that BTC built.

Lots of altcoins are present in the market- whether memecoins or usable coins. The latter are the types where they simply took the technology of BTC but they introduced improvements therein. The former are the ones that derive their value based on influence and hype- where its value is totally dependent on supply and demand (ie dogecoin influenced by Elon Musk).

One of the many reasons on why the price of BTC influence these altcoins is because they derive their value somehow on how BTC is performing in the market. That is also the reason on why BTC has the highest price of all altcoins present in the market.

AakZaki

legendary

Activity: 2338

Merit: 1084

zknodes.org

Quote from: _BlackStar on February 27, 2022, 10:32:45 AM

One of the reasons I have today is that altcoin exist because of bitcoin and without bitcoin altcoin probably wouldn't exist. Bitcoin is one of the most numerous trading pairs for altcoin on the market other than USDT or other altcoin pairs that when the bitcoin price fluctuates ^{[up or down]} the altcoin price is also affected.

People say bitcoin is an altcoin role model where price movements will also be a role model to determine the best moment to buy or sell altcoin. At least bitcoin fundamentals will be taken advantage of by people who like to trade altcoin all the time. That's my simple reason why altcoin continue to be affected by bitcoin's volatility and probably most traders already know that.

Of course most traders already know it and Bitcoin is the main benchmark before trading on altcoins. Bitcoin is the backbone of cryptocurrency as described by the OP.
Bitcoin became the beginning of everything, so everything is based on bitcoin or depends on bitcoin.

_BlackStar

legendary

Activity: 1064

Merit: 1228

Playgram - The Telegram Casino

One of the reasons I have today is that altcoin exist because of bitcoin and without bitcoin altcoin probably wouldn't exist. Bitcoin is one of the most numerous trading pairs for altcoin on the market other than USDT or other altcoin pairs that when the bitcoin price fluctuates ^{[up or down]} the altcoin price is also affected.

People say bitcoin is an altcoin role model where price movements will also be a role model to determine the best moment to buy or sell altcoin. At least bitcoin fundamentals will be taken advantage of by people who like to trade altcoin all the time. That's my simple reason why altcoin continue to be affected by bitcoin's volatility and probably most traders already know that.

Mpamaegbu

legendary

Activity: 2716

Merit: 1225

Once a man, twice a child!

I've read interesting angles to the debate as to why altcoins chase Bitcoin in price wherever there's a bull rally for BTC. From my perspective, the whole alts price rising when Bitcoin price goes up thing is tied to emotion. Humans are emotional beings. The market is transacted by humans with emotions. People get emotional in judgment whenever Bitcoin begins to bull to the point that there is a maddening rush to buy any alts thought to do well in price. Most times there's a look out for low capped tokens as people would think those alts should be easy hits and then do a multiple of figures. I've been caught up in this in the past too. Most times, that expectation isn't met. Other times Bitcoin dumps but there are alts that continue to soar in price and not getting distracted by Bitcoin.

GeorgeJohn

hero member

Activity: 1498

Merit: 711

Enjoy 500% bonus + 70 FS

You should have ask the reason while altcoins price don't influence Bitcoin price acceleration, actually both questions are of the same value. So from your question i comprehend that while Bitcoin price regulates or influence the price of others coins is because of it's validity to the society, secondly bitcoin has attention in the market sphere more than altcoins because of it's potentiality, it's noticeable that during the introduction of cryptocurrencies Bitcoin was first created and also introduce to the world before any other coin, so it's has gathered it's momentum before coming of other numerous resemblance coins.

cryptoaddictchie

legendary

Activity: 2268

Merit: 1379

Fully Regulated Crypto Casino

Quote from: Edith1994 on February 22, 2022, 01:26:14 PM

I really want to know why any time Bitcoin increases or go high many other coins will go high too and when Bitcoins drops many coins drops too.
is it that Bitcoin is the backbone of other coins or their is something connected between Bitcoin and other coins.

please I need explanation.

For me its due to the market pairing. Of course those who have paired with btc on major market would be influenced by btc price since its related on trading. Most coins that has btc pair will likely also move the same with btc. There are other coins exception to these but we all knew it would be higher chances too to get affected.

Btc movement proves that other coins can be affected by it. Check out the chart of most altcoins and youll see some resemblance with btc.

DoublerHunter

hero member

Activity: 2590

Merit: 644

Quote from: Issa56 on February 26, 2022, 03:29:09 PM

What I notice is that most people already believe in bitcoin, so whenever bitcoin price is dropping, people holding alternative coins will panic and they will start selling their coins, which will make price of altcoins will start dropping due to people selling and if the price is increasing people will have confidence and they start buying back altcoins which will make the price to start increasing back. That's just my opinion, it might not be the reason.

^ No, probably that is not the main reason.
As what explanation above, most of the altcoins have been paired with BTC, USDT, and even ETH. So now the most common that has transactions is on BTC which make BTC down when there is also a lot of selling altcoin. For example, I sell my altcoin into BTC and then sell my BTC into fiat, that is the reason why altcoins swing in the same way as BTC. BTC has always transactions when people want to convert their crypto to fiat and it always go on the BTC before it will convert a fiat.

Issa56

hero member

Activity: 1484

Merit: 928

What I notice is that most people already believe in bitcoin, so whenever bitcoin price is dropping, people holding alternative coins will panic and they will start selling their coins, which will make price of altcoins will start dropping due to people selling and if the price is increasing people will have confidence and they start buying back altcoins which will make the price to start increasing back. That's just my opinion, it might not be the reason.

Mahiyammahi

member

Activity: 119

Merit: 46

While btc is crashing no one is willing to invest new tokens and get himself in lose of their assets. You can say BTC is market maker. Everyone's get fear with market crash. Whatever people says that it's future but no one willing to loose their money in this type of digital money. That's why people's get panicked and sell their alts to get rid of their fear. If everyone just stay strong and never sell their we won't watch any market crash

Peanutswar

legendary

Activity: 1708

Merit: 1280

Top Crypto Casino

Bitcoin has already built a reputation to the whole cryptocurrency and again its the mother of all coins, also another factor is the investors as you can see recently the economy have some issues with the war of the UK and Russia investors pulled out their assets because of the potential crash and of course people do panic selling additional is the bitcoin pairs there's a lot of them, but of course, the bitcoin never fails us to make a profit. Bitcoin shows the conquer in the market.

dbc23

sr. member

Activity: 1036

Merit: 311

Quote from: Edith1994 on February 22, 2022, 01:26:14 PM

I really want to know why any time Bitcoin increases or go high many other coins will go high too and when Bitcoins drops many coins drops too.
is it that Bitcoin is the backbone of other coins or their is something connected between Bitcoin and other coins.

please I need explanation.

It's simply Bitcoin is open source meaning people could read, improve, develop their own coin but can't alter the functionality of the existing coin. Now since most coins are built in this software prices of Bitcoin tends to affect them too. What ever direction Bitcoin posses ather coin know as altcoin takes up the same direction. And also Bitcoin happen to be the first every cryptographic project that ever survived due to its decentralized nature and as such it is the main target of the market and what ever effect it has on the market inveriably affects other coins

OcTradism

hero member

Activity: 1722

Merit: 801

Think of it as a leader stock in stock market. If a leader of a branch industry is falling, other stocks in that branch industry will do fall too. You will hardly find very rare stocks which can have opposite movements with leader stock in a same branch industry.

What is a leader in crypto market? It's Bitcoin, always is Bitcoin, from 2009 to 2022. So if Bitcoin is healthy, the crypto market has positive psychology so that altcoins will be fine.
If Bitcoin is in pain, the crypto market will have negative psychology so altcoins will mostly in pain too. Unfortunately, when the market is in pain, altcoins will lose more than Bitcoin.

Rich222

newbie

Activity: 14

Merit: 12

Quote from: KingsDen on February 23, 2022, 02:15:47 AM

When I was a newbie I made a similar post in the Altcoin board an I was having similar answers as I see here. But since I am becoming mature in this space, I have truly understood that there is no serious connection or whatever between these Altcoins and btc. What we see is just demand and supply.

When btc wants to rise, we already have the mindset that Altcoins will rise with it and you will see many people buying Altcoins in order to make x5, x10 etc. By this, our mindset plays out.
Again, when btc is crashing, our mindset will also tell us that Altcoins will crash with it and we begin to run out of altcoin market, maybe to aquire more bitcoin at low. This is just what happens. I will like someone to disagree if what I said is far from the truth.

in my own understanding, Bitcoin is mostly use by most trader in buying altcoins that also make Bitcoin demand and supply high by pushing other coins in a inverse direction.

pooya87

legendary

Activity: 3472

Merit: 10611

There are two very different ways to look at altcoin prices. One is to look at their price in USD and another is in BTC. For example ether price is currently $2670 or BTC0.07. With that distinction you can figure out what really is going on.

Most people get into bitcoin by buying it with fiat, then they try to increase what they have (make profit on their BTC). One way to do it is to trade which means buying altcoins with your bitcoins. But the thing about altcoin market is that whenever bitcoin price goes up, majority of traders sells their altcoins to get their bitcoin out because they know altcoins are going to dump against bitcoin. But since it is not everyone and also because arbitrage trading exists, the altcoins don't get completely dumped against bitcoin and consequently their USD price goes up.
For example ether example above we had the massive pump of 2017 where it reached 0.15BTC but as bitcoin price went down ether got dumped too and later when bitcoin price went up it again got dumped until it reached the current price of 0.07BTC but since bitcoin price today is 1200% higher than what it used to be at the bottom the ether price is also higher in USD but only 550% higher because of that massive dump.

Coin_trader

copper member

Activity: 2800

Merit: 1179

Leading Crypto Sports Betting & Casino Platform

Quote from: Edith1994 on February 22, 2022, 01:26:14 PM

I really want to know why any time Bitcoin increases or go high many other coins will go high too and when Bitcoins drops many coins drops too.
is it that Bitcoin is the backbone of other coins or their is something connected between Bitcoin and other coins.

please I need explanation.

Crypto has its cycle which traders follow, Its not always crypto follows Bitcoin movement because sometimes altcoins move into opposite direction. Altcoins price most often Bitcoin is because other traders that late on riding in Bitcoin gains usually look for other invesment which is altcoins to start or ride the wave that Bitcoin start. The exchange has a trading bot too which reacts on Bitcoin sudden price movement which gives an profit for stabilizing all the crypto price in proportion with Bitcoin gains.

KingsDen

legendary

Activity: 1288

Merit: 1081

Goodnight, o_e_l_e_o 🌹

When I was a newbie I made a similar post in the Altcoin board an I was having similar answers as I see here. But since I am becoming mature in this space, I have truly understood that there is no serious connection or whatever between these Altcoins and btc. What we see is just demand and supply.

When btc wants to rise, we already have the mindset that Altcoins will rise with it and you will see many people buying Altcoins in order to make x5, x10 etc. By this, our mindset plays out.
Again, when btc is crashing, our mindset will also tell us that Altcoins will crash with it and we begin to run out of altcoin market, maybe to aquire more bitcoin at low. This is just what happens. I will like someone to disagree if what I said is far from the truth.

Daodex

member

Activity: 252

Merit: 12

Its very clear to see that Bitcoin has the biggest volume over all and liquidity too, it's well supported over every other altcoins out there that's why it has the power to control the whole market value every altcoins look up to bitcoin movement.

Bitcoin_Arena

copper member

Activity: 2114

Merit: 1814

฿itcoin for all, All for ฿itcoin.

The easiest answer and explanation is probably because Bitcoin acts as a base currency for different altcoin pairs in different exchanges. I believe you have already seen so many altcoin pairs in BTC markets such as ETH/BTC, SOL/BTC, LTC/BTC

So let's say at a bitcoin price of 1 BTC being $10,000, if 1 LTC = 0.001 BTC in the LTC/BTC market pair, it means in USD value 1 LTC is worth $10
If the price of Bitcoin double to $20,000. Even if the price of LTC remained the same vs BTC (0.001 BTC). It implies the USD value of 1 LTC will have doubled to $20

That how Bitcoin affects other altcoin markets.

hatshepsut93

legendary

Activity: 3024

Merit: 2148

1. A lot of altcoin volume is concentrated in BTC pairs or alt pairs, so their USD price sort of gets automatically updated to mimic BTC movement

2. Bitcoin is the leader of crypto sphere. It's the most popular coin, the most developed coin, the most adopted coin, it has the largest marketcap. It represents cryptocurrency technology as a whole.

Bitcoinbride

jr. member

Activity: 38

Merit: 21

Quote from: Edith1994 on February 22, 2022, 01:26:14 PM

is it that Bitcoin is the backbone of other coins or their is something connected between Bitcoin and other coins.

please I need explanation.

Bitcoin is the pioneer cryptocurrency, you can call it the king. It has a direct influence on other coins because most cryptocurrency take reference from it, that's why you can often hear Bitcoin and other altcoins (a term to refer to any coin not bitcoin) this may be one of the reasons why it's price affects other cryptocurrencies.

Upgrade00

legendary

Activity: 2114

Merit: 2248

Playgram - The Telegram Casino

You basically gave the answer in your thread, Bitcoin is sort of the backbone of the ccryptocurrency market;

Crypto functions as a correlated market and bitcoin being the first crypto coin and holding majority of the market cap of the entire network, means that the price actions of bitcoin influences the opinion of majority of traders and can affect if they are bullish or bearish, which reflects in them following the price actions of bitcoin.

N.B., This does not mean that every single coin follows the price actions of bitcoin and some can rise or fall when bitcoin does the reverse.

Edith1994

newbie

Activity: 14

Merit: 16

I really want to know why any time Bitcoin increases or go high many other coins will go high too and when Bitcoins drops many coins drops too.
is it that Bitcoin is the backbone of other coins or their is something connected between Bitcoin and other coins.

please I need explanation.

Topic: why does the price of Bitcoin influence other coins (Read 358 times)