Bitcoin Forum

I observed when bitcoin prices goes down, other cryptocurrencies also goes down and when it goes up, the same thing happens to others and i just dont know why cos i think different currency should go up or down at different times or are they all bitcoin dependent?

Hi,

Bitcoin is the original alt coin, so it is quite logical that its trend tend to drive others'.

But you are right, if we follow the logic of offer and demand, actually when btc goes down, eth should rise. This would be true if cryptos were the man trading factor. But it is not. When the price of bitcoin falls, it is because (amongst other reasons) people are selling their bitcoin. But they do not sell to buy other cryptos, they sell to get back their initial currency (generally speaking, fiat money, such as dollars, euros, etc).

So yes, this will be true when bitcoin are traded for other alt coins. But I hope this won't happen, because, please, remember that bitcoin is NOT a trading tool.  :-*

You have your logic there. That's why you will see that parallel trend to other altcoins.

Recently, the rate of bitcoin and other crypto currency shows a decline because of the decisions of China and South Korea about the limitations of the work of crypto-exchange exchanges. In addition, the price of bitcoin may have been affected by the stoppage of trading on the Japanese exchange Coincheck, which was forced to take such a step because of the hacker attack - as a result of it, NEM was stolen by 400 million dollars.
The bitcoin rate may also be decreasing due to the statements of some large investors. So, George Soros - an American billionaire, speaking at a forum in Davos, called the crypto currency a typical "financial bubble". At the same time, he stressed that the same bitcoin is not a stable means of accumulation, like another currency, and therefore crypto-currencies are just speculation.

Its simple. :) Bitcoin is the father of all coins. :) So if it goes down almost all altcoins will follow.

it may be because people are cashing out from all those altcoins to come back to bitcoin market.

but the important thing to remember is that IT HAPPENS!
knowing that you can simply prepare accordingly and by acting faster because of anticipation you can become a lot more successful in this market and make more profit.

1)btc up-alt down
2)btc down-alt down
3)btc stay-alt up

reason
1)if bitcoin price up newbie started to in only in bitcoin so the major focus will be on btc only.risk will be if the price strike down.
2)btc effect pair to fiat...when btc price decrease other will follow by % of btc drop.
3)btc stay...will be more than a day so trader will do scalp and started focus on alt..

If you mean driving, that would mean the urge to use or gain financial help from bitcoin. It could also be the urge to learn about Cryptocurrency and not just Bitcoin because bitcoin is based on Blockchain Technology which is currently helping a lot of platforms to revolutionized their programs and become more advance than any technology. Learning about Bitcoin would take interest on how much knowledge you want to learn.

You should check properly in the market not all the coins are follow the same way. But many altcoins are followed it is depends on the Bitcoin technology.
Know many altcoins are following the Ethereum platform. The future most of the altcoins are following in NEO platform so this is temporary fluctuation in the market. But still are believe the Bitcoin technology

Most of the cryptos are tied with bitcoin's price directly because all of them are traded mainly against bitcoin rather than fiat so when bitcoin will get dumped people will start to sell their other alts for bitcoin to sell bitcoin in panic. And vice versa when bitcoin start to surge, they will start investing their bitcoin back to alts so that they can increase their total bitcoin.

I know its not all in totality, but majority that are well known follows btc trend thats my point.

all altcoin is highly dependent on bitcoin
try to you see, when the red bitcoin graphics automatically all altcoin will follow the volume of bitcoin, and it is true that bitcoin is called king, crypto currency in the world. Because everything will follow bitcoin,When bitcoin up or down. it all depends on bitcoin

I believe its because of the pairing Exchange Platform has. Most of the investors selling out because of panic uses BTC-USD, thus not making any changes to other coins.

Bitcoin is actually the progenitor of all of the existing cryptocurrencies.  The progenitor bears most of the damage but some of the damage shall be handled by the progenies.

This is the right answer, Bitcoin is very often used as a base pair for trading against other altcoins.
Some exchanges are now starting to also use Ethereum as a base pair, but Bitcoin is still the most dominant one.

You really should check BTC USD and ETH markets via Coinmarketcap, there are subtle differences in price spikes and drops when you compare them.

if the investors in altcoins are panic selling and are in fact exiting to USD through bitcoin, then what you are saying is that the altcoin dumps caused bitcoin price to drop not the other way around! is that what you are trying to say?

because it makes sense that altcoin dumps cause a drop in bitcoin but i don't think it was the case here.

I agree with you because i also observe what you've been mention above. Altcoins is dependent on bitcoin in my local exchanger, If bitcoin will get banned in my country all altcoins will be worthless. It cannot converted to real money anymore.

Nearly all other crypto coins are bound to BTC to switch to USD. That is why bitcoin price movement affects the altcoins prices.

What I'm saying is, when there's a panic selling. The pairing will always CRYPTO => FIAT and not CRYPTO => Another Crypto, that is why we see that when BTC is down alts will follow.

Bitcoin is not driving any other crypto currency and that there is no direct relation in between any of the crypto currency with that of bitcoin. However, this is just a general observation that at time when the market value of the bitcoin falls down, the market value of the rest of the crypto coins also falls down and that is because of the reason that bitcoin is like the most popular coin having a huge market.

If its not driving them, why cant it move differently, why is it that whatever happens to it happens to other coins?

Bitcoin is the old and safest and well known to most crypto community. And BTC used as a medium of exchange for almost every Altcoin out there. Due to every Altcoin is correlated or paired with BTC,  when BTC declines almost every Altcoin starts declining

because bitcoin is the king of crypto. every crypto is around bitcoin.
the most trading platform has bitcoin pairs with other coins.

that is what my observation too. I think the reason is that all of the coins are cryptocurrency in which they are volatile.  when there is a problem occurs that affect bitcoin ofcourse it can affect other coins too. and also ass we all know when we are trading our coins before we can get it as a cash , you will convert it first to bitcoin then cash. this is how it works in my case. so I think bitcoin is the king of cryptocurrency that if it affected, other coins will be affected too.

It's easy to understand. Because the price of all the coins is relative to the bitcoin. In the digital currency. Bitcoin is king, and bitcoin is the identity of people's virtual currency and the whole community. If people have confidence in the community of virtual money, the value of other altcoin in this industry will also reduce the degree of identity. It can be believed that the digital currency is a whole and is bound to the bitcoin.

Bitcoin is the very first cryptocurrency. There are several different reasons why people believe in bitcoin. It has made an impact on the lives of many people more than the other coins. It is the most popular among all them. More people use it than the other coins. So if bitcoin falls all the other is most likely affected.

I assume this is due to the fact that BTC is the leading coin. And somehow altcoins are dependent on the BTC's prize called something like a bitcoin standard. It may be because the market is young and there are still time for it to develop. I hope that this 'bitcoin dependency' times will end soon. Despite that altcoins are dependent on the Bitcoin price, we still need to know that altcoins are not a carbon copy of bitcoin. That's why this dependency will vanish soon, Ethereum, LiteCoin and Ripple are not the same as Bitcoin. These days show that this dependency is gradually fading amidst the dump of bitcoin some coins are remaining still in their price.

It's not really easy to understand, if you have a coin which has a different purpose and is used for something else other than being a currency, it's price shouldn't change when Bitcoin does.
There is only one explanation, one is buying and another one is selling a.k.a countries circumventing sanctions.

Nobody said anything about believing in Bitcoin, believing is something else, if you believe in Bitcoin but have no money, you'll become a beggar like me. lol.

Of course, Bitcoin is a daddy, and altcoins are always ready to fallow their parent. Additionally most people never do not know about alts until they come to cryptomarket and start to learn everything there.

The reason behind why many people driving the bitcoins is because of its opportunity and unique characteristic that possess.
I think from this many people hook up with their services in order to achieve a better life that will gives them more reasons to become a successful person.

I think not all because even right know that bitcoin has gone to a very low level, i can see that ethereum has not went down that much and there were even days when ethereum price was better than when bitcoin was high.

Previously, in principle, it was the other way around. If bitcoin was growing, the altkoins were falling, and when the bitcoin rate dropped, the altkoins grew. And it was logical. Because if bitcoin fell, investors switched to investing altcoyins. Now the situation has changed. Perhaps because there was a lot of false information about the entire crypto currency, and not just bitcoin.

All altcoins are bought and paired with Bitcoin. If Bitcoin goes down, the usd price of the altcoins goes down as well.

Bitcoin driving others maybe because of their curiosity in bitcoin and also their belief that they will have a better future if they will going to try patronizing bitcoin and other cryptocurrencies.
Another is bitcoin is not like the money that we really use everyday. Bitcoin has its highest value in all eventhough if it is intangible or tangible money.