Why is bitcoin driving others

[investerS]

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?

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[mOgliE]

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. 

[Twinkledoe]

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.

[Falgorn]

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.

[CasperCorn]

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

[BrewMaster]

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.

[ismadanniel]

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..

[ghost424]

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.

[jvdp]

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?

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

[Catmony]

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.

[investerS]

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?

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

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

[topleskacah]

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

[GameRaider85]

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).

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.

[monkeydominicorobin]

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?

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.

[eternalgloom]

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.

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.

[Red-Apple]

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).

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.

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.

[ranz_18]

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?

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.

[shulio]

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

[GameRaider85]

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).

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.

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.

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.

[robotrobert]

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?

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.