Bitcoin Forum

I just noticed this now, why is that when the bitcoin price goes down hard, so as the other coin and tokens? Do they have mutual functions on the market? Thats what ive noticed to this bearing market as of now. Can anyone help me on this? I just want to know more detailed explanation regarding to my theory.

This is market sentiment. This even happens in stock market if you observe it. But it is higher in cryptos as crypto are more closely related to each other sharing popular currencies as BTC and ETH as exchanging pair.

This is not relevant at the moment, the only thing relevant is the bear trend at the moment and the decreasing volume that is effecting each crypto from bitcoin to altcoins to tokens everything is pushed down at the same time, newbie investors are cashing out in panic, i hope this situation will come to an end soon.

 I’ve learned over time that the fact that every major exchange offers BTC trading pairs (where you can trade BTC for alts rather than alts for fiat or USDT) is the key to understanding why alts follow BTC.
Because BTC is the top coin being traded for other alts in terms of market cap, volume, and general popularity, it is thus at the center of the crypto economy and has some gravity behind it (enough gravity to have an almost constant relationship with alt prices)

The price of each coin is determined by how much are people currently willing to spend for it. To simplify lets just say that the price of the coin is determined by the price of the last buy or sell order.
Lately due to bad publicity and other factors cryptocurrencies aren't receiving much love so not many people are willing to buy but more people are willing to sell so in order to sell they need to sell for a lower price. And because bitcoin is like a bridge to other alt coins, if less people are buying bitcoin its expected that less people are also buying everything else and so everything is dropping.

Btc is considered the grand papi of all cryptos and as such all other cryptos are somehow, by a magical force, tethered to it.

Ok ok, not by a magical force, the problem is with the exchanges, they mostly use bitcoin as a trading mechanism. While many like idex and and i think binance, (not sure) use eth as well, a majority and infact the top ones use bitcoin as their number one currency.

You have to convert to btc on bittrex.com before you can buy any other coin.

So if btc drops, the psychology is that other coins will drop as we, either because ppl wanna buy more btc with alts, or sell of their alts due to the drop in btc.

I guess there are two main reasons for that: first of all most of the coins are mainly traded in BTC pairs on the exchanges, so if their value is mainly expressed in BTC, if BTC tanks in their $ price, so do they. The second reason is that if the market sentiment is to sell BTC for FIAT, people sell alts for BTC so that they can sell those BTC for FIAT as well. Very simple.

The price of altcoins are derived from bitcoin. Therefore if bitcoin drops in price, altcoins will be affected.

Keep in mind that the crypto or even forex market is driven by sentiment.. That's why it's advised to have your emotions in check when trading and also,  you don't lose until you sell.

Because when the bitcoin has dropped sharply, so may cause people to panic, so they can sell other tokens, so there will be a chain reaction, like many Naomi domino effect.