Relation between Altcoin and BTC

[hachiman13]

This might have something to do with alts being traded in pair with bitcoin. If perhaps the price of alts are paired with USD, we might see a more diverse market of different cryptos independent of the price of bitcoin.

[Pom_bensin]

the relationship between bitcoin and altcoin is now very tight, altcoin will decrease or increase in price when bitcoin fluctuates. so the increase or decrease of bitcoin will affect altcoin because buying and selling altcoin will be affected where a lot of users sell or buy altcoin by using bitcoin.

[0t3p0t]

Bitcoin is the center of the crypto economy in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to escape. This only becomes more true as people start to “take gains” or “cut losses” from altcoins to buy Bitcoin when it goes on a run, and tend to “go to altcoins” or “go to fiat/USDT” when Bitcoin stagnates or drops.

The main currency in cryptocurrency markets is Bitcoin (fiat currency, ethereum, and Tether are also used, but Bitcoin is the primary currency). Given this, altcoins tend to fund Bitcoin runs and Bitcoin tends to fund altcoin runs. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.

I agree with your idea mate because it is what really is happening in terms of Altcoins relation to Bitcoin and the market of course. We can clearly see that when there is a price correction wherein Altcoins are much affected when Bitcoin's price starts to fall. Maybe because majority of traders uses Bitcoin as trading pair on every exchange due to it's higher value compared to any other pairs. It could also be a reason that Bitcoin is the most popular all over the world because it is widely used and accepted as a form of payment.

[Tactical Genius]

Bitcoin is the US dollar of cryptocurrencies,usually people buy Bitcoins and use that to buy other cryptocurrencies.When the price of Bitcoin goes up people dump altcoins to join the price pump and so altcoins usually drop in price for a while before rising because people will now  have to spend more to buy alts if they don't buy within the time being

[gates]

I think that when bitcoin price drops, weak hands start selling their their altcoins for bitcoin to cash out, which makes the price of altcoins drop as well.

Yeah, people mostly switch to bitcoin after fall cause they think they can make more money if they do that. And since altcoins are being traded with bitcoin I see this that when bitcoin falls, altcoin follows.

I thought the same, and actually continue to think this way. I asked this question in purpose to to learn the process more deeply. I'm interested in the technical aspect of their so called 'relation', i.e how it actually works. And I'm also having some doubts about this 'weak hands start selling their their altcoins' theory, because the popularity of BTC decreased, it's not often used for transactions and it's not a platform for ICOs. So, people are investing into Ethereum, which volatility is smaller, and other new interesting alts. So my doubt is - is it going on to be that way? Do people really start selling their their altcoins for bitcoin to cash out? Of course, there are a lot people, who still do that, but there are also many people, who prefer to hold good alts.

[Gabash]

Bitcoin is the father of all the cryptocurrencies that is why it is dominant in the market,as the father of all these coins bitcoin will dictate what will happen to  his children which is the altcoins,it is morelikely a dictator/comanding officer in a platoon of soliders,which means altcoins movements will only follow one coin which is the bitcoin.

... Yes their relation is just like a family that bitcoin rules like the head of the family while altcoins are the members because as we observed they are both crytocurrency produced by the blockchain technology. They are all electronic currencies that are the same concept.

[Rudi Setya]

Questions like these I often hear. If I think that bitcoin and altcoin are interrelated. bitcoin is the first digital money. whereas altcoin is present after bitcoin, then followed by other coins. So bitcoin is used as an investor guide for transaction activity. and some investors use other altcoins and are still guided by bitcoin prices.
When bitcoin lowers altcoin also goes down. and vice versa.

[Haunebu]

There is obviously a definite relation between bitcoin and altcoins, but the exact relation itself is tough to describe due to the extreme volatility of this crypto market. According to me and many others, bitcoin has, is and shall always be the king of the crypto world and the altcoins will always depend on bitcoin in some way or another. For example, most altcoins cannot be purchased directly and we need to purchase bitcoin first before trading them for the respective altcoins that we wish to purchase. Bitcoin and altcoin values are directly proportional to each other some times and inversely proportional to each other sometimes.

[sinduarianto]

according to myself because Bitcoin is one of the mains of all coins because if the price of Bitcoin goes up then all Altcoin will also go up.

[marcbitcoins]

Hi guys, I understand that this question is probably obvious, but I'm wondering. What is the actual principe of Altcoin and Bitcoin relation? Why when Bitcoin price falls, Altcoin price falls too and vice versa?

BTC which is the the first known coin was founded and become successful, many professionals and businessmen come up with the idea to follow the path of BTC in which they create their own coins with the concept of their products will be backed up by utility token like hitting two birds in one stone. All coins after BTC were called altcoins but most of the holders are depending to BTC in which if BTC price will fall it will create domino epic creating panic to the altcoin holders in which they will sell their altcoins too.

[Grim149x]

It's the first thing that comes out of people's mind when they think of crypto currency or digital currency. A lot of people are ignorant, that's why they correlate altcoins to bitcoin.

[FiveReelsOne]

Altcoins were made solely because of bitcoins. That is the reason why currently bitcoin is too popular and that may be the cause why we are in the crypto market now. I believe Bitcoin is the mother of all altcoins an the reason why of all it has the biggest value of all coins. All altcoins maybe converted to bitcoins according to its value. Almost all coins are being affected with its price when it comes to the value every now and then. The changes of this prices sometime are being dictated by supply and demand of each altcoins in connection to bitcoins value.

[Britanshio]

Hi guys, I understand that this question is probably obvious, but I'm wondering. What is the actual principe of Altcoin and Bitcoin relation? Why when Bitcoin price falls, Altcoin price falls too and vice versa?

First crypto coin made was bitcoin  and after the speculation that what if bitcoin will down how coud crypto currency to be suopprtive.This is the reason why alternative coin or altcoin exist to support the cryptocurrency.

[maman09]

Hi guys, I understand that this question is probably obvious, but I'm wondering. What is the actual principe of Altcoin and Bitcoin relation? Why when Bitcoin price falls, Altcoin price falls too and vice versa?

for that you can look for comparison in exchange ,.
or one simple example. bitcoin is a virtual currency that is always held by merchants and investors. all trades will involve bitcoin. it is the reference of all altcoins.

[Red-Apple]

Hi guys, I understand that this question is probably obvious, but I'm wondering. What is the actual principe of Altcoin and Bitcoin relation? Why when Bitcoin price falls, Altcoin price falls too and vice versa?

the "vice versa" is not true actually.
the price relationship between bitcoin and altcoins has always been a weird one in my opinion. whenever bitcoin is either rising or falling, altcoins fall down. i suspect this has something to do with the fact that everyone wants more bitcoin and every trader cashes out of altcoins into bitcoin to take advantage of that market when it is moving.

the only time that altcoins rise is either when they are getting pumped without paying attention to what bitcoin is doing or when bitcoin is stable so money moves to volatile altcoins.

[Vaflia]

I think you're not exactly right. When bitcoin grows, altcoins are falling. When bitcoin falls altcoins are falling, too So it was all 2017 year.

[criminalbee]

Hi guys, I understand that this question is probably obvious, but I'm wondering. What is the actual principe of Altcoin and Bitcoin relation? Why when Bitcoin price falls, Altcoin price falls too and vice versa?

It is the result of having a 2 currency that is being used in the market today. Fiat currency which is controlled by central bank/government and cryptocurrency a decentralized currency or in Layman's term called "Internet Money". Bitcoin is the most acceptable cryptocurrency that is why altcoins always relies on bitcoin price movement. Since there are new whales in the industry which trade in the market they are also have a big impact in the value of altcoin and Bitcoin. If Bitcoin goes up and altcoin goes down, it means the whales are selling only altcoin in pair with bitcoin. But if you saw that Bitcoin price is going down and altcoin is also going down, it means the whales are selling altcoins to Bitcoin and selling Bitcoin to Fiat or if there is an available pairing of altcoin vs fiat in the platform they sell it directly to fiat. When you see Bitcoin and altcoin are pumping together it means they are buying bitcoin and altcoin with fiat. That is what you call diversification.

[Subkarnas]

As you can see on many/most of the exchanges, (major) altcoin value is expressed proportional to the value of bitcoin. So when there is a fluctuacion on the market the traders will buy/sell bitcoin/altcoins because there is much to be gained there (this action is reserved for the experienced because you can lose it all, very fast). Bitcoins place as #1 is mostly reserved because it was first out there.

[Coin_trader]

Hi guys, I understand that this question is probably obvious, but I'm wondering. What is the actual principe of Altcoin and Bitcoin relation? Why when Bitcoin price falls, Altcoin price falls too and vice versa?

It is the result of having a 2 currency that is being used in the market today. Fiat currency which is controlled by central bank/government and cryptocurrency a decentralized currency or in Layman's term called "Internet Money". Bitcoin is the most acceptable cryptocurrency that is why altcoins always relies on bitcoin price movement. Since there are new whales in the industry which trade in the market they are also have a big impact in the value of altcoin and Bitcoin. If Bitcoin goes up and altcoin goes down, it means the whales are selling only altcoin in pair with bitcoin. But if you saw that Bitcoin price is going down and altcoin is also going down, it means the whales are selling altcoins to Bitcoin and selling Bitcoin to Fiat or if there is an available pairing of altcoin vs fiat in the platform they sell it directly to fiat. When you see Bitcoin and altcoin are pumping together it means they are buying bitcoin and altcoin with fiat. That is what you call diversification.

Such a very good explanation that deserves 2 smerit

[GFE]

Hi guys, I understand that this question is probably obvious, but I'm wondering. What is the actual principe of Altcoin and Bitcoin relation? Why when Bitcoin price falls, Altcoin price falls too and vice versa?

Overall BTC fall in $ leads to altcoins fall in $ and BTC value too. Growth of BTC in $ leads to growth of altcoins in $ but fall of altcoins in BTC value. Stable BTC price leads growth of altcoins price in $ and BTC value