Why Altcoin prices often follow Bitcoin price

[RajaCripto]

not all altcoin prices follow bitcoin prices, for example there are some coins that are opposed to bitcoin prices, such as MTC coins. but most indeed altcoin prices follow bitcoin prices

[Dancobit]

Because bitcoin is the leader of the entire cryptocurrency market.
The move from bitcoin shows confidence in the entire cryptocurrency market.

Bitcoin is different from the conventional currency seen from its volatility. If the conventional currency is backed up by the state, then Bitcoin is not backed up by anyone. Bitcoin is backed up by itself, just as gold is not determined by anyone.
Pure Bitcoin value is influenced by demand and supply.
Many factors affecting demand and supply include: the policy of a country to bitcoin, the ups and downs of the investment climate, the psychological condition of bitcoin business people, news and so on.
While the questions agan why-why, more to the psychology of the culprit.
That's my boss

[lafter]

Bitcoin is the primary intermediary for exchange purchases. The liquidity of bitcoin is quite high. So, the market went down, people selling altcoins out bitcoin and out dollars, causing altcoins prices to fall under Bitcoin. As bitcoins increase, people are also selling altcoins to bitcoins that also lower the price of altcoins. So, just when Bitcoin sideway, altcoin grows back.

[dumplingsandsushi]

there are a couple things to consider:

- When you look at coinmarketcap, the prices you see are actually what the price of the coin is in btc, then that btc value is converted to usd based on the going rate of btc.
So, if Altcoin #1 costs. .001 btc, and then price of btc is $100, then Altcoin #1 will display as $1.  Is the price of btc goes up to $1000, and Altcoin #1 still costs .001 btc, then naturally it will increase to $100. So, most coins go up just based off of the value of btc going up.

- Sometimes an altcoin loses value even when btc goes up because it's price per btc has gone down.  For example, Altcoin #1 cost .001 btc.  But the price dropped to .0001 the next week.  Even if the value of btc goes up, on coinmarketcap, it will display as Altocin #1 going down in value.

- Coinmarketcap is an average of the going rate for each coin/token.  It gathers data from exchanges and averages it out.  So prices are not entirely accurate.

- The reason why btc is used to calculate value is because it is the only coin that can be widely traded for fiat (buy and sell it using real money).  So it has the most reliable indicator of $usd price because the data is wide and varied.  however, it is still somewhat innacurate because it does not include direct p2p trades from places like localbitcoins.com

[riwatmoni]

This is all tied up by one simple reason, the bitcoin is the currency in the entire cryptocurrency market, Altcoin is all paired with bitcoin in their trade pairs which is the reason why bitcoin prices affect the price of altcoin so much, When the transaction volume for bitcoin decreases then it also means that the amount of bitcoin used for trading has decreased and the price of altcoin down.

[CLywaTeLb]

In addition, or instead of what was said above:
new people who come to the cryptocurrency, first of all they hear "bitcoin";
this forum is one of the largest in the world, begins with "bitcoin";
a lot of videos on YouTube with the word in the title "bitcoin" ...
Of course, first of all they buy BTC. Altcoins learn later. Thus, the alts are follow for.

Someday the situation will change.

[ivanleon]

In fact, altcoins are tied to the price of bitcoin, as on all exchanges are sold in a currency pair with It. So so. They say that in the autumn waiting for the jump of Bitcoin, respectively, on the altcoins will be very tasty prices)

[lamadu3]

Do they really? I often encounter this statement. And i have no idea as to why. This past few days, bitcoin is on the rise and most certainly than not altcoin's price surely follows. I am not saying this is bad but altcoins have very little in common with bitcoin. And they are certainly not carbon copies of bitcoin either. Why the heck is their price so closely connected despite being so fundamentally different?

Everything is connected in this crypto world. Bitcoin is the mother of all currencies (I mean sure, digital money). That is why when BTC is up, alts are rising, when Bitcoin is down, the coins are falling.

[cosmicart]

I think both are related in a trade that makes an interest. a couple of customers need to make an advantage by offering alt and buy bitcoin, some unique customers offer bitcoin and buy alt. you should change me if my inclination isn't right.

[sumaneaiyandiya]

Actually, no distinction. Furthermore, that and that - кpиптoвaлюты. In the event that we discuss a particular cryptographic money, at that point the distinction, obviously, will be. Above all else, this is the calculation on which the cryptographic money lockdown and the sort of encryption utilized as a part of the blockroom work. Yet, in particular, what intrigues clients is the cost of a particular digital money and the likelihood of mining.

[ahah]

Because altcoin has a lot of whales. Whales push up the price of bitcoin. Attract cryptographic investors. When bitcoin stopped rising. Whales are turning to altcoin. That's what I found out

[funchiestz]

I wrote about few minutes ago almost same things. Bitcoin has a big trust on market. If this trust get any damage, all other coins will be damaged also. Bitcoin represents all other coin in crypto world. This trust needs to be protected. We've already saw what will happen if BTC go down quickly like happened in February,2018.

[godspree]

Bitcoin is the first crypto and the leader of cryptocurrency market and  altcoins work mostly in a set called  trading pair with Bitcoin or another much larger cryptocurrency. That's why, relying on Bitcoin as the accepted form of payment.

[Yujesuma]

As I would see it, altcoins ascend in accordance with bitcoin on the grounds that once the exchanging altcoins for the most part relies upon bitcoin exchange as well. The informal investors I trust utilize bitcoin or their altcoin exchange and once the exchange volume of bitcoin rises, those altcoins rise as well.

[Aleksey1958]

I think this is due to the fact that the most basic trading pair is altcoin to bitcoin. In General, Bitcoin is the leader of the crypto market and everyone behind it

[eriwis]

Do they really? I often encounter this statement. And i have no idea as to why. This past few days, bitcoin is on the rise and most certainly than not altcoin's price surely follows. I am not saying this is bad but altcoins have very little in common with bitcoin. And they are certainly not carbon copies of bitcoin either. Why the heck is their price so closely connected despite being so fundamentally different?

I think it's not always that way, because recently Bitcoin went up quite big but altcoin did not keep up with a comparable ratio. But the price will always have a correlation, because many investors who buy only wait when global market capitalization increases. And with the magnitude of Bitcoin dominance, I think the global market will be determined by the performance of Bitcoin.

[gawuk]

Do they really? I often encounter this statement. And i have no idea as to why. This past few days, bitcoin is on the rise and most certainly than not altcoin's price surely follows. I am not saying this is bad but altcoins have very little in common with bitcoin. And they are certainly not carbon copies of bitcoin either. Why the heck is their price so closely connected despite being so fundamentally different?

That's because everyone is waiting. When Bitcoin rises, then we will start buying Bitcoin. Some buy with altcoins, and altcoin prices will be cheaper while Bitcoin rises. If this lasts long enough, many investors will begin to be interested in buying altcoins, and a lot of fiat money starts to enter, and in general all prices will increase.

[docamvan1997]

Some altcoins do not base on BTC. They base on USD. USD is easier than BTC. And when the projects is successful, their price do not base on BTC anymore.

[Shikamaru]

Do they really? I often encounter this statement. And i have no idea as to why. This past few days, bitcoin is on the rise and most certainly than not altcoin's price surely follows. I am not saying this is bad but altcoins have very little in common with bitcoin. And they are certainly not carbon copies of bitcoin either. Why the heck is their price so closely connected despite being so fundamentally different?

In my opinion, technology and prices do have an effect, but maybe they are two different things.
Crypto will always be determined by consensus, although one of the variables is technology.
When Bitcoin is pumped, many fiats enter because they expect the market to be bullish.

[Inuldarahrendah]

basically, bitcoin is the first cryptocurrency. can be said that bitcoin be a symbol of cryptocurrency. so as long as bitcoin is still the most superrior coin, then surely the price of bitcoin is a reference for the price of other coins. but not all altcoins follow the price of bitcoin.