Bitcoin Forum

Hi friends:
What is the reason for the large fluctuations of altcoins in your view? Why are altcoins so fragile compared to Bitcoin and fluctuating with the smallest news? Of course, I mean the altcoins that have good ideas, professional support,... not the shitcoins.

Many traders and investors just aren't as confident in altcoins in general as there have been thousands of boom-and-bust projects over the years, and the lower liquidity in altcoins and the fact that some of them are controlled by just a few entities doesn't help either. A lot of newer alts also don't have as much of a track record as more established alts and Bitcoin, which doesn't do much for investor confidence, though this isn't always applicable for the more established altcoins.

The trust for bitcoin is huge and that's why with every single news that we have, it's moving. As for the altcoins, they are more volatile than bitcoin because they can be dumped anytime although bitcoin can do the same but the damage can be more than btc.

Bitcoin is the safest cryptocurrency and if you are an investor, you will take the gamble with some few altcoins but eventually, you will get back to bitcoin so that you'll be safe again with your money.

There are some reasons that actually gives a huge impact on the altcoin. Altcoin is very volatile compared with bitcoin caused by so many speculators on altcoin while the majority of people who are buying bitcoin were taking bitcoin as a way of investment and they are not so active doing a trade just like what has already done by them in altcoin. Altcoin is a way to trade in the volatile market.
Even small news does a huge impact and that has proven if altcoin is really sensitive to any news released for the altcoin itself. There was an altcoin who was getting a piece of single big news and it's enough to make it gets 150% just in one day. Beside of altcoin itself has already used by speculators and altcoin is an undervalued coin and that increases the possibility for pump and dump to be true. In this case, bitcoin gives also the contribution to the volatility of altcoin as there are so many factors are also making the altcoin become very volatile. They are using altcoin as short term investment and this increase the potential for the volatility to happen as they are converting altcoin into the USD or Bitcoin in short term period.

Bitcoin itself is highly volatile because it has quite low volume relatively to its market cap, and there's a strong lack of interest from institutional investors with big pockets, so it's mostly traded by retail investors and some rich guys who are into experimental stuff. Now take all this and multiply it by x10 and apply to altcoins - they are essentially like penny stocks, and no matter how "good" and "promising" it looks, without volume and big recognition it's still a penny stock. People outside of crypto have heard about Bitcoin, maybe about Ethereum, but no one heard about IOTA or XRP, because they still have no real-world uses.

Bitcoin is the mother of all altcoins, this is the main reason why altcoins fall so easily.
altcoin is just a way to get bitcoin, imo.
altcoin must have a large community and the latest innovations to stay in the market.

I don't see it that way when there is bad news all the coins that include Bitcoin shows all the signs of decline, it's the total market action, you mentioned that top altcoins in the market they perform better in all the news bad and good news and they always bounced back I always checked the prices of each coin and they all show sign of resiliency.

I believe what you mean by being fragile, is the rate at which they are volatile.
What then makes you think bitcoin is not fragile?

This is applicable to all coins. Although, there are certain new coins that dump unnecessarily and may not be able to find their way up again. That is, they may never see their ATH again. Some of them are already dead.

This cannot be far from the failure of the majority of alternative coins. Most projects are just implemented on the front page of whitepaper and never deliver to the investors, so most people are very skeptical and been careful when it comes to alternative coins

Real easy answer, liquidity and volume.  Also in most altcoins the top holders usually own a lot so one person can move the market which isnt as easy with bitcoin anymore.  You could dump $1mil worth of bitcoin in the market at market price and you wouldn't even make a dent in overall price.  Now pick any other coin and do that...you start to see why alt markets are heavily manipulated.

Every altcoin isn't fragile, because most of the time altcoins that are being in the hands of centralized authorities suffer to break easily. Most users have mentioned about the manipulation that is possible with altcoins in higher level than bitcoin. Another important thing is the market, supply to demand creates value to bitcoin. With altcoins in several cases the terminology on market movements differ. This is where bitcoin and few altcoins gets stronger and more altcoins stay fragile.

I agree with this. I have a few altcoins but after thinking for a while and considering market conditions I think it is safer to invest in Bitcoin than other altcoins. But I guess if you are really a risk-taker and an expert trader and probably if your luck is on altcoins, there's no harm in investing in it.

The competition has grown. A lot.
This is the only reason I can think of into why investors would go away from it.

When the competition gets enormous you would not want to be left on the one with less trust or no popular at all.
So, they will switch. Takes the investment out from that coins and then put it into the most hyped coin.
Ethereum as of now is the most hyped because of the staking process that will happen.

Most altcoins follow the rise of Bitcoin and this makes Bitcoin's dominance bigger in this market. I think altcoins need to increase prices more stably and do not need to wait for the good news to profit from this market. Personally, I still choose to invest in altcoin but I will always be careful because I know that altcoin is the riskiest investment in crypto market.

Market Capitalization for sure.
Bitcoin is much safer for sure than some altcoins there but the only problem on people is they want some easy pumps or huge returns in just a short period of time that's why they are more attracted to altcoins.

The Bitcoin dominance also: https://coinmarketcap.com/charts/
As you can see, dominance of Bitcoin is more than 50% for now, so expected that Bitcoin is still much powerful than combined all altcoins out there.

IMO it's because of the network effect. Bitcoin has the largest user base in the entire crypto market; in other words, the Bitcoin community is very strong. Let's see with altcoins (except stable coins), the altcoins holders always have Bitcoin, but not vice versa. With the small user base, the market becomes highly inefficient, therefore more prone to pump and dump or market manipulation in general.

We can't compare the trust that people have in bitcoin to that of altcoins, the difference is very clear, lack of trust and better support is what's plaguing most altcoins life in crypto space today upon the better features that altcoins have

It's simple for me. Go out there and find yourself 10 crypto users. All will use Bitcoin. None will use the altcoins you're talking about (good development, proper operations etc.). I'm not talking about Eth token users and traders either. I'm talking actual users, like have they ever broadcast a transaction? Paid for something with crypto? Not traders or bounty hunters who sell for money.

Now find 100 users. Maybe there is ONE actual altcoin user. Find 1000 crypto users. Maybe you get 10.

But 10,100 or 1000, all use Bitcoin.

Bitcoin has been in existence for a decade now, traders and investors have a high level of trust in Bitcoin. They feel more confident in investing in it too. From the beginning Altcoins failed to create that kind of trust. It so common to hear a scam related to Altcoin and I think trust is one of the main reason why Altcoins have lost confidence .

Mostly crypto community prefers Bitcoin first because they find more possibilities in btc more than any altcoin so If you see the dominance level and adoption graph of Bitcoin which is the deep side of Bitcoin as well it's all shows why altcoins are fragile against Bitcoin and that's the main reason.

The best reason here is the popularity. Let's be honest most altcoin has potential but being oppressed by bitcoin due to its popularity. How many have known some altcoin such as pivx? Dash? Monero? If you would ask neighboring country they could say that they know bitcoin well than these mentioned altcoins.


I think its 6.20% only maybe you are referring to the combined dominance or percentage of market volume. The market cap of bitcoin is huge compared to combined marketcap of altcoin but that isnt the main reason IMO. Could be a factor but the fact that bitcoin is the first digital currency which is why most prefer it.

In my personal opinion, altcoin is like relying on bitcoin, I even saw a few times when bitcoin prices began to fall, then most altcoins also went down, and vice versa, so I concluded that good altcoin is like there is a dependency on bitcoin.

if you see from the annual chart and from BTC dominance then when the dominance goes down that's alt will rise.
We will see that at the beginning of the end of 2017 the dominance of BTC decreased and the alt season arrived at that time.
maybe it will happen again in the next bull, or in the near future when halving btc happens, who knows.

indeed many altcoin price movements follow the bitcoin price movement but it is very reasonable because bitcoin is the center of all cryptocurrency that exists but sometimes when there are certain events that can increase demand the altcoin price will soar high and not depend on the price of bitcoin.

That is because the altcoins follow where bitcoin price moves, and the altcoin still behind bitcoin. Bitcoin still leads the crypto market, and if somehow bitcoin price is down, the altcoin will also down, and sometimes, the altcoin down will be too deep than before. That will make the altcoin fluctuating than bitcoin, although bitcoin price itself is fluctuating too. If we want to make a profit, I think we can try to trade with bitcoin pair usdt so we can have a chance to make a profit from the fluctuating price of bitcoin price.

It's because if there is a downtrend many of the exchanges doesn't support direct conversion of Alts to fiat or stable coin. Even if there is a market its volume is very less so people tend to sell the alts towards BTC to convert it to fiat or stable coin this leads to the fall if BTC tends to fall.

Another reason would be if BTC falls or the cause of that fall will also be negative for the entire crypto industry so it might also be the reason for that. If the dominance of the BTC decreases then at that time alts soar against the BTC

it is because of wide use and trust of investors on the btc, almost everything in the cryptospace depends on the bitcoins, another advantage is that btc was the first ever crypto currency. maybe someday quantum computing beat the btc and people may make something better than btc

It has been proven by time that bitcoin is the safest asset in this cryptocurrency sphere. You don't have to look for any other altcoins and think of it as your safest haven.

Alts can also be considered somehow as another asset that you can trade with but be careful doing that, you have to be really picky when choosing once. The popular ones before, they are likely to be forgotten now.

Simple, bitcoin has gain the trust of the community due to it years of continuous profitable performance, it has always revolves in a circle as it always recover after it decline in price meanwhile since most altcoins are just duplicate of already existing alts, it usually get replace with a new and improved project which kills the former. Meaning, altcoins can't be relied on but bitcoin can be relied on since we only have one bitcoin.

The cryptocurrency market is still influence by emotions meaning most Investors are just emotionally motivated and have no prior knowledge of investing therefore they fud on any negative news and since the altcoin market has more of this type of Investor, it surfers the most.

Every market is fragile be it Bitcoin or altcoin. The reason why it seems altcoin market is so fragile is because when there's a little change in the altcoin market everyone rushes to cash out to Bitcoin. When Bitcoin moons, everyone as well rushes to cash out and stay in bitcoin which further pushes the altcoin market down making it look as if though is too fragile when compared to Bitcoin and also remembering that everything that happens to Bitcoin is felt on Altcoins. If Bitcoin price goes up, Altcoins dump because everyone wants to stay in bitcoin.

This is mainly a consensus gap. Nowadays, there are many people who know Bitcoin, and there are many people behind him who support him, and there are fewer and fewer people behind altcoins, and the gap between the two is very large, which will lead to different liquidity, so price fluctuations are often Will be different. The price of Bitcoin is less volatile than altcoins. Often a altcoin news appears, which will cause the altcoin price to fluctuate sharply. Vulnerable to news.

The main effect its from bitcoin, the secondly from the project it self based on my speculation. Why? because went the trend market on bitcoin is on bullish/bearish altcoin always got effected for the price keeping down. Altcoin need a stable market condition to make their own fundamental movement price after the bicoin price was moving.

I guess it is because there are lots more issues related to Altcoins than Bitcoin which thoroughly affect the whole Altcoin market as a whole. Whenever there is a big news in relation to altcoin the whole market is being affected maybe due to the generalization brought by the recent happenings which involves Altcoins which is I think until right now is still not into good condition to regain the trust of the investors. People do obtain or trust more into Bitcoin undoubtedly because it is well-known to be the safest and the most secure cryptocurrency existing in the market that is people chooses it more over Altcoins. With such reasoning people do have in their minds towards Altcoins, it makes the prices of all Altcoins whether it is good or bad project to be affected on this making the whole Altcoin market to be fragile compared to Bitcoin alone.

One of the things in the crypto world is that it is unpredictable when news can affect a market positively or negatively. In the case of altcoins, the volatile nature is high when compared to Bitcoin, in that unfriendly practices or changes from the team can cause the token to drop in value; imagine a good project announcing that it will list on another exchange, of course users will want to buy and hold prior till then but what will happen if it is delayed, there are chances the token will drop in value. In addition, Bitcoin also affects altcoins, in this case when Bitcoin is rising in price most might be forced to sell off their altcoins to Bitcoin which also affect the altcoin in question. So, there are many things which affects altcoins and its price, and they might likely not be avoided.

Let me start by saying that, many have invested in altcoins and were disappointed in the process. I particularly invested in series if altcoins backed in 2016 till 2017 and very few of these investment yielded profit to me but others went into the drains. Many have this same experience and never wanted to invest into altcoins but only on Bitcoin. Bitcoin is more secure than the altcoins which most are been controlled by very few individuals called developers. They have all the control over the said altcoins and can go off anytime without investors consideration.

If we invest in altcoins without any research, we will fall just like gambling. We may lose our money in just a second. Altcoins are more volatile and that any bad or good news, they can be easily affected. Although the whole market is affected when negative news hit it, but when it comes to bitcoin it recovers easily and this is why bitcoin is a safe investment compared to altcoins.

Bitcoin does it but another factor that comes from the global sentiment was also giving a huge impact to drive the price of bitcoin. We can see so many investors have been tried to secure their asset from the global impact. Bitcoin is not getting any bad news but it faces the correction. that's a little bit doesn't make sense.

Bitcoin is an investment that many people choose to invest because the coin has had a very stable growth over the past time. In addition, altcoins can also be your second choice because these are coins that usually rise very high if good news appears. However, you are not always lucky enough to make a profit from this market and everything requires great patience.

While the correction is there happening, altcoins still faced several challenges which is more difficult as to compare with btc. If you're having an asset right now, much better to venture first on bitcoin all alone and make altcoins as your alternative secondly. It served as your second options to gain profit in the future. Once bitcoin will achieve the top value, we need to find another way to make sustainable income from it.

This is because of the use cases and objective of those platform. Sometime an altcoin becomes a shitcoin if the application of their platform doesnt needed and necessary in blockchain. Many platforms are like this and makes them become valueless.

Agreed. The bitcoin popularity becomes an immense progress on technological advancement and many cant argue to this. Why? Because many altcoins have just been imitating the real product and purpose of peer to peer and sometime its redundant to every investors thats why many altcoins are just ignored.

Even Bitcoin used to fluctuate a lot. There were times when BTC used to go up or down by as much as 40% in a single day. I am talking about the period before we first hit four digits in 2013. Back then there were less than a dozen exchanges, and the liquidity was limited. Many of the smaller alts are at this stage right now and therefore they have large fluctuations.

Bitcoin has many supporters so even the value is fluctuating and sometimes hits a bottom the price can recover easily due to people who buy and hold bitcoin because they believe on it.

This is not the case for altcoins, some investors are buying to take profit and dump their holdings once they get the chance to do so. While others are selling their alts to buy btc especially if they see the price is surging.

There's no reason for this volatility but when Bitcoin price either moves up or down, there's bound to be huge action on the price of Altcoins. If Bitcoin price goes up, people sell alts to get Btc but if Btc price dumps, people sell alts to cut their loss and as such the alts keep bleeding.

Market cycles is the answer to your question. With a high BTC dominance, BTC moves the market a LOT.

In 2017 when the BTC dominance was lower, alt's could move on their own, which will happen eventually again, once BTC breaks it's previous ATH.

A few altcoins did move despite of BTC as of recently, Blocknet from 7000 satoshi to 20000. Most likely due to their work on decentralized oracles.

Altcoins have a much lower market cap, but are controlled by relatively few people.

Therefore even a handful of people buying in or selling out can significantly impact the price, which then leads to a ripple effect because of algorithmic trading bots.

BTC is harder to move with its $100b+ market cap.

They are "new", bitcoin is so far most tested, most secure and most trusted. If it fails, everything fails as people keep looking the whole cryptocurrency scene value from bitcoin. We always tend to forget it and start to talk about ETH flippening again, not seeing that it has actually been more unstable then bitcoin.

Irrespective of all you just highlighted in regards to the so called established altcoins, they're still inferior to bitcoin and that's a major disadvantage all altcoins will have forever. Bitcoin is just one therefore the trust level associated with it plus an additional 10 year of been profitable, it must have definitely earned all the trust it's getting.

Altcoins get traded against bitcoin meaning most of them can't stand on their own. Altcoins are mostly bought with the intention of selling at the quickest profit possible therefore when even there's a news that can hinder that plans, the Investors panic and sell off their investment.

That is why they are called Alternative cryptocurrency because they are not btc, just an alternative to btc,
And if by being fragile you mean in terms of price,  alts are only base on speculation without no use, there is a tendency for the price to always fluctuate because nothing to stabilize the price,  people buy btc as a store of value unlike alts.

I don't know how it becomes fragile but if you would say how it becomes valuable than of altcoins? Maybe it was.

I only stand why it become valuable...it is because it places an important role just like having the best driver of the world...you'll have to pay it high than of casual drivers or having a precious metal(gold)...it was also expensive.

That's the way it looks like and we can't deny that Bitcoin is leading on the market demand because of its considerable market profitability in which everyone's are looking for among the rest cryptocurrency existed.

Because their marketcap value is less compared to bitcoin's value and the number of investors/holders of the altcoin is far less than the bitcoin so if there is a news which makes people to respond then it will get more sooner response than bitcoin.But most of the price movement of altcoins coming from bitcoin's price movement so it all depends on the investor's trust on the coin.

One of the major reason i believe is the total reliance on Bitcoin, Most altcoins are usually trade paired to btc.
Which is why sometimes, when bitcoin dumps 10%, certain altcoins dump 100%

and even on rare occasions, if bitcoin moon 20%, some altcoins dip 200%, it has to do with the sats of the buy orders too.

Why not try trading and practise with 5$-10$ see what you can do ?

Just my views though, do your own research and have a better understand

Since investors are seeing Bitcoin as the most stable cryptocurrency, there’s nothing left for most of these altcoins than to be stable. Most of the time when the altcoin market is falling, investors quickly withdraw their and send it over to Bitcoin and such action that’s being taken by most of these investors causes altcoins to be highly volatile.

Someone once said that whenever altcoins increase in price, they increase more than Bitcoin, and when they fall their fall is worse than Bitcoin, because they fall to the extent you will see more loss. And since Bitcoin is considered by most of the investors, it is seen as the main cryptocurrency. New investors mainly go for Bitcoin and not altcoins.

I'm also thinking about this, it's just that I'm pretty sure that many people believe in bitcoin that development continues, and bitcoin is a decentralized coin, and no one has power over it. besides that, bitcoin also has multifunctionality.
whereas for altcoin, most altcoins are controlled by a team, and if the team is not trusted, then altcoin will be damaged, this makes altcoin more fragile than bitcoin.

Well, I would say since bitcoin is the King of them all, it has gained so much confidence  from investors that when there is a negative news, sometimes the impact isn't  so much as regards dump because investors believe it will rise back quickly  but for altcoin that is dependent on Bitcoin, most times because of their volatility, once there is a negative news, you see investors wanting to get out of the market and as such would create huge dump

What I have noticed, blockchain solutions are progressing more and more into specific industries that used to work without it few years ago. And to be honest, I am pretty impressed with the value that certain worthwhile blockchain solutions are bringing to the table. Even though, many parameters must be analyzed before blindly believing in the benefits

Hello. This is true, I would say. And what are the industries you are following? And how are you basically exploring new solutions on the market?

Talking about me, I attend lots of music festivals and sporting events, which is why I was excited when I discovered GET Protocol. It seems like a really cool solution with a lot of adoption and promising future. I wanted to share some info about them and ask for your opinion. GET Protocol offers a blockchain-based smart ticketing solution that can be used by anybody who wants to sell tickets in an honest and transparent way

From your words definitely sounds interesting as this is the in demand industry. But can you probably come up with more info on GET protocol?

In few words, guys are bringing blockchain onto ticketing industry. And results so far are amazing - around 300k tickets are sold, partnership with Oerrock festival and more. What do you think of the guys? In my opinion, new standards on the market. Of course, I recommend you to have a closer look at their website to have deeper understanding of the idea. Pretty sure that you will be impressed

That makes sense and sounds interesting, will definitely have a look on my own and get back with own thoughts shortly! Thank you for your recommendation

Bitcoin dominance in the market is very large, when bitcoin has decreased then it indirectly affects the market as a whole so that most of the altcoins experience the same thing. Moreover, the price of bitcoin lately goes up and down quite actively, the effect of halving, a lot of speculation, etc. The altcoin is a strong potential, although it will definitely decrease the pump if the market conditions improve. While weak altcoins whose products are not strong enough, work carelessly, investors will eventually leave and become worthless.

 altcoins large fluctuations ? hell no dude alts are not volatile as bitcoin  so alts hardly move if ever there is a major bad news but btc are the ones that are going to be affected the most  .

 your questioning if why alts are fragile , obviously because of thier small value but not fragile in a way that they can be easily affected by a speculation or some sort of news   . good altcoins are much more stronger than the shitty ones  but all of them arent expempted ones whales manipulate them directly  .

There's no connection to blockchain and why altcoins are being fragile to bitcoin just like what op is asking. But what you have said is a fact, the progress of blockchain to the world has been so good and is becoming more popular and known what it can offer to most companies.

This is one of the true reasons why alts are like that, some of them are being controlled and manipulated.

Bitcoin is protected from or not exposed to danger or risk and there's a extremely large  lack of interest from institutional investors even though there is a high competitions in between mostly the first investment trust is bitcoin compared to Alt coin ,in this circumstances in the long process alt coin are still basis on bitcoins power.

Agreed. The circulation of funds inside an altcoin market is so predictable. Even whales can control a new project by setting up sell and buy order himself until he pumps it or dump it. Unlike bitcoin which will be needing a lot of funds to be able to manipulate.

Bitcoin is already known as the father of all coins so it has gained the trust of most investors. Merchants have chosen it as a mode of payment rather than other altcoins because it has shown huge potential. It has passed all the tests of time and if we'll look at its history, we could see how it went so far. It's well-established already and it could stand firm no matter what the market situation is compared to other altcoins.

Well, I think the reason why altcoins fluctuates is that there is not enough trader or supporters for the coin. Unlike bitcoin, ripple, litecoin and other well-known coins, the newly created digital coins will have a hard time to keep in touch with the famous coins. Since, they are new coins, their price is not a high as expected and it will hard for them to compete to the other coins.

Altcoins are much more fragile than bitcoin because it has a less supporters than Bitcoin. Also, altcoin is having a hard time to recover after a dump unlike bitcoin that can easily recover because of its supporters. Altcoin supporters after a dump is scared and does not want to invest into it anymore that is why it takes time for it to recover.

We know that the altcoin price follows the bitcoin price, so that is the reason why the altcoin is so fragile compared to bitcoin. When bitcoin price down, the most altcoin will be down, and it's a matter of time before that altcoin will go down. When bitcoin price increase, the altcoin will not increase too fast because they need to survive for a while so they can increase step by step to reach a higher price. But the other reason is when bitcoin price loses value, people will sell their altcoin to be back to bitcoin or usdt.

more demand means more buyers and sellers so that means the coin wont remain stable , take example bitcoin . btc is so indemand therfor btc is verry volatile but most altcoins are simply not getting much demand from the public . the reason why alts is so fragile is its lack of support from the people and also from the bigger names , it can easily be manipulated by some regular group of people and they dont require much wealth to do it but this cant easily happen on solid coins because many people can counter it

indeed bitcoin is the first choice for stability and security. with a large community bitcoin is a trusted coin in cryptocurrency. this is followed by altcoins, but only a few altcoins can be used as a reference for long-term investing. besides that the level of trust is also important to maintain the community