Bitcoin Forum

I noticed that altcoins are affected by the price of bitcoin when it goes up or goes down, what is the reason behind this? And is it possible that there is an altcoin that can possibly scape from this cycle and how?

The answer is simple. Bitcoin is like the king of crypto world. When the king is strong and prosperous, his kingdom is also happy. Trade flourishes, new people settle in etc. But when the king is weak and has a declining health, then the effects are visible in his kingdom too. Trades become less, people start moving out etc.

Currently Bitcoin is the focus point of crypto world and represents the trust and interest in cryptocurrencies. It is also the gateway to crypto world and is paired against the maximum number of cryptocurrencies. So when Bitcoin's prices go down, people basically lose trust in cryptos, and start selling their altcoins too; thus bringing the price of altcoins down.

As for which altcoin can escape this cycle, then the answer is probably none.

Most of the time, the price of altcoin is affected by BTC. If BTC falls, most altcoin will fall.
However, this is also a signal that when bitcoin falls, we should sell tokens in time.

Meaning the chance of any altcoins to scape this cycle is absolute zero because the selling of altcoins in the bad stage of bitcoin causes more badly.

because the main and only reason why real investors invest in any altcoin has always been to make profit on their bitcoins or make profit on their money so they could buy more bitcoin in its dips. so whenever bitcoin is making big move they dump altcoins to go back to bitcoin and get involved with that big move.

for altcoins that exist today? no, not a chance.
but if an altcoin were to be created that is not for the purpose of speculation and trading but for the purpose of being a currency (a coin) then it can flourish individually.

This is because altcoins are only "ALTernative coins" to the largest and most well-known cryptocurrency which is BITCOIN. The only way to escape this if people realize the value in coins other than bitcoin.

In my opinion, Ethereum is the closest to breaking free from bitcoin's ups and downs. Its so good that Ethereum actually has the potential to overtake bitcoin. Google "the flippening" or visit https://flippening.watch

Because altcoins are not determined its own value, I mean the price of altcoin still depend on the price of bitcoin to give the rate to the altcoin price. Look at the market and the majority of altcoins are using bitcoin pair as the main pair in every crypto exchange sites right now and that gives a lot of impact to the altcoin price itself which the price will be following bitcoin.

As I can see most relies on bitcoin as the best profitable after all. An altcoins is always affected when price of bitcoin goes down it follows. When they trades on altcoins and get profit most swing to bitcoin to calculate their profit. This is why I see it is always affected.

Because all altcoins can only be bought for bitcoin.
And when it is expensive, then all other coins grow in value.
It's simple.

Yes, it is currently we will see if bitcoin down then altcoin will be the same. The exact reason I didn't know exactly. I have two reason, the first reason is investors who have investments in bitcoin automatically they will have an investment in altcoin also, so when bitcoin prices go up or down they will sell and buy altcoin.

The second reason, we know that the biggest effect that makes bitcoin and altcoin is the information coming against cryptocurrency. They will automatically sell their altcoin if they know there will be a crash because there is bad information about cryptocurrency, not information that comes to bitcoin but information came overall to cryptocurrency.

Bitcoin is part of cryptocurrency, not a cryptocurrency part of bitcoin. So, it can go down and rise its altcoin price due to the same investor who has an investment of bitcoin and altcoin, or it could be because of hearing news from cryptocurrency.

Simply because bitcoin is like the king of cryptocurrencies if the king is illed or injured all of its warrior is effected and will not fight again.

In my opinion altcoin price follows the flow of bitcoin because btc is the first cryptocurrency that can be converted to fiat and vice versa. In order for us to invest on a specific altcoin from fiat, bitcoin is the gateway.

I also noticed same, I think Bitcoin has gained tremendous popularity over Altcoin such that people now see Bitcoin to a standard. Am also thinking, if any Altcoin is able to surpass Bitcoin, same thing will likely happen.

Market always start movement from alt coins. You can see clearly how is market going to rise or drop.
If market going to crash market starts to crash from alts cause people cannot usually turn to fiat directly from alt coins.

I agree with you, the price of all coins is affected by bitcoin, so I agree we must sell the tokens correctly, I hope the ethreum is stronger and unaffected by the declining bitcoin price.

I think this answer is very complete and very clear with all the illustrations it provides. hopefully the OP can be helped with your answer. I just want to add that bitcoin also can not develop itself without any other altcoin as an alternative

Because price depend on satoshi. Just keep your eyes one of exchanger, like bittrex. There is a way to buy altcoin with satoshi (btc to altcoin). If you bought a coin with 5000 satoshi. In few days you noticed that, the price now 5000 (same). But USD value down, why? Do u know? Its meaning bitcoin falling down.

right, bitcoin as an intermediary transaction to buy altcoin, so altcoin can not escape from btc. therefore if btc decreases then altcoin also decreases. and with encouragement of altcoin btc can maintain its circulation

It's because bitcoin is the king of CryptoCurrency and altcoins are alternatives in bitcoin.
I see the bitcoin price are going down and all coins in Crypto World are decreasing too and I think it depends on bitcoin price or because the correction that's why the price are fall in the pass few months.

You can use bitcoin as the main indicator of the crypto world. Price off almost all altcoins depends on BTC because most of them are tradable through pair with BTC.

Bitcoin is the dominant coin in crypto currency, as the king of coins goes down it is naturally that all other altcoins were also going down. especially majority of coins were priced based on BTC. Most Probably if bitcoin is down, your altcoin you are holding will also go down.

Most of this altcoins are pegged into btc meaning on trading sites they are in btc/altcoin pair and not in usd.

Altcoins are still too dependent on Bitcoin. This is primarily due to the fact that people perceive them as second-rate currencies. Altcoins have not yet reached the level of reliability, anonymity, transaction speed, so that they are considered equal to Bitcoin. Young crypto-currencies have the high connection with bitcoin rate. As the popularity of altcoin increases, connection weakens.

Yes because it is directly or indirectly connected to BTC.

It is not so difficult. Bitcoin became the first cryptocurrency and a symbol of a new previously unknown market, it is the single currency, all originally equal to it. After the emergence of the altcoins the price is started to be measured in satoshis, BTC. A cryptocurrency you can only buy with Bitcoin. Now appeared such giants, as, for example, Ethereum and many altcoins are based on his base. But in order to remove the king from his throne, you need to significantly surpass it in many parameters, such as the number of transactions per second, their speed, price, anonymity, scalability and accessibility. If there is such a cryptocurrency that can be easily bought, converted into any other cryptocurrency/currency and it will correspond to the parameters listed above, then it will have all chances to become a new king. This is my vision on this issue.

Do we have now an existing alt purposely to be a currency(coin)?
And what is the difference between coin and token?

Thanks OP for this.

This is well understood, because all altcoin is based on bitcoin, and when bitcoin is rising or falling, the price of altcoin is bound to be linked. Because most altcoin is not recognized by most people in the market, so this effect will change more in price.

This makes us realize that the influence of Bitcoin currency on the market is enormous, now many other currencies are living on Bitcoin and Alt is also one of the influential coins. From Bitcoin, if the economy develops in many countries, investors will no longer be concerned about the Alt issue.

you know what, the important thing to know is that It Happens! you don't really need to know the reason only to be aware that this relationship exists.

with that in mind, next time you see bitcoin rising or dropping you need to rethink your while altcoin investment before it is too late and you are in a big loss.

I wish this didn't happen and I think once the majority of the market wealth is shared between several coins this won't happen. as long as BTC holds most o the wealth Alts are somewhat tethered to it. Exchanges would also have to have more trading pairs away from btc. I think this will happen eventually.

Majority of the Altcoin are actually dependent on bitcoin, but there are still coins that are already well established. Since bitcoin is usually used as exchange rate in most exchanges it affects the value of alternative coins. I have few coins that going an independent track, the development team has really a good vision and performing well on getting every milestone happen. Time frame really matters for a project, a god project meets its goal.

Good observation so far, that is reality of the market trend of cryptocurrency as altcoins are correlated with bitcoin. If bitcoin will accelerate then altcoins will follow and by the time bitcoin declines, same thing will happen to the alts and it is like directly proportional with each other. I happen not to find yet a coin that will still continue to accelerate despite of the successive dips so far. I think that the strong resistance is hampering bitcoin's growth to move forward.

The reason is that Bitcoin is the main cryptocurrency, where the others called "alternative"= alike coins. The affects that play Bitcoin, play on other alike coins as well.

Bitcoins price is directly correlated to alternative currencies. When bitcoins prices go up, the believe in crytpto currency as a form of investment is strengthen and people get into it by getting more of other alternative currencies. Also, when the price of bitcoin declines, then the fear of holding crypto as investment also increases and people start selling of their holdings in other coins.