Why Altcoin prices often follow Bitcoin price

[Latviand]

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'm not sure, maybe because Bitcoin has a higher market volume, demand , popularity and large community. Bitcoin leads the rest of the cryptos when it comes to genral aspect which might put Bitcoin at yhe top. As we can observe last year, other cryptos are dependent with the market value of Bitcoin. So since things are different now, we my expect changes.

[anahata]

Because Bitcoin still is safe bet for most of the people in crypto. Most of us think about profits in terms of BTC not fiat. Trades are paired again BTC, and not directly USD in most of the exchanges.

[Cloak1]

Mainly because most of the exchanges use Bitcoin as main pair value. Secondly because Bitcoin is one of the most traded and when it go down other people that hold other cryptocurrency sell. You can see this in “real world” when one of the top national currency drop value (EUR or USD for example).

[csbsstudent]

BTC's dominance is very strong on the whole cryptomarket including coins, campaigns, ICOs and other projects. This coin can kill all alternative coins I am sure, it needs to be solved so much.

[Andromada]

This is due to the fact that people pour their money into bitcoin when they see an opportunity to earn, and altcoins at this time either fall or grow very slowly. And when the money is poured from bitcoin, bitcoin goes into a sideways movement, and altcoins grow

[ovinna]

The crypto currency market's foundation is BTC and other alternative cryprocurrencies are depended on BTC at all. BTC is the king of the market and this its dominance is too hard and such interrapting from its side is very ugly and unnecessary.

[wuvdoll]

The crypto currency market's foundation is BTC and other alternative cryprocurrencies are depended on BTC at all. BTC is the king of the market and this its dominance is too hard and such interrapting from its side is very ugly and unnecessary.

Yes, most of the time, the foundation is what determines how the rest of the building will hold or will I say the root of a tree which in this case is more like bitcoin is what determines how the branches are going to sprout.

Bitcoin is the first and the most supported cryptocurrency in the space and altcoins are just certainly a way for whale investors to make more money off those who are looking to invest in quantity because they missed the bitcoin train. In that case, the altcoin market since it is tied to bitcoin market in terms of trading pair will always have a major effect on their prices.

[NEERAJ ANAND]

All altcoin follow bitcoin price because bitcoin is the base currency for the trading of any altcoin in every exchange and it has the highest market share in the whole market.

[BALIK]

Bitcoin is the de facto base currency for crypto right now, a few exchanges list other pair wise combinations, but almost everything is tied against BTC, simply because it has the biggest market cap, just like the USD. If BTC shakes, so does Altcoins, I don't think I have ever seen a situation where all altcoins rise whilst BTC goes down, but vice-versa is common.

[aceptamosbitcoin]

Most of the investors are trying to predict the market movements based on Butcoins movement. So when Bitcoin drops a lot of investors are selling altcoins too. When Bitcoin is rising the same investors are expecting altcoins to rise and start buying.

[itsliss]

Bitcoin is the father of all the other digital currencies and has a dominance of over 50% of the total market. it will take a long while and great projects before other alts can come close

[Enochian]

At first, I was also confused when the price of bitcoin dropped and altcoin prices also fell.
I think Bitcoin has a big influence on the price of Cryptocurrency in the market.
No wonder the prices of Bitcoin and Altcoin are interrelated because Bitcoin is the oldest coin that appears in the Cryptocurrency market so that Bitcoin is used as a reference price for other altcoins.
This is why Altcoin prices always follow the price of Bitcoin.

Bitcoin is a leader in the investment market and will always remain with them. Other coins will always be equal to its price and try to outrun it.

[imboss]

Most of the investors are trying to predict the market movements based on Butcoins movement. So when Bitcoin drops a lot of investors are selling altcoins too. When Bitcoin is rising the same investors are expecting altcoins to rise and start buying.

If the price is always rising then there would not be a chance for people to get their money out. The market is doing okay for now.

[StarofBTC]

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?

Yes, they follow the flow of bitcoin even in the market. I think because of coin are pair with the bitcoin so they depends in bitcoin price.

Not every time as there could still be some exceptions somehow. At least, we have seen a lot of altcoins resisting such movements in the case where bitcoin is not bringing a favorable condition for them. For instance, doge really gave a huge push recently, despite the market tending to move down hugely but still tried to test the previous high few months back. Generally though, we all know that altcoins are just some sort of distraction from the real deal and as long as they will keep being there, they will certainly be tied to the movement of bitcoin.

[evichi]

A look at coinmarketcap shows that market cap and volume for bitcoin versus other cryptocurrencies is lot more than the altcoins. Secondly, most trading pairs (altcoin/bitcoin) are with bitcoin. bitcoin being the first cryptocurrency, has attracted a lot of crypto participants. So, a lot revolve round BITCOIN. This makes the cryptocurrrency unique with great future potentials. Just as gravity pulls objects to the centre of the earth, likewise, Bitcoin pulls altcoins when it moves.

[NakiRR]

Because first of all it is a BTC market, from October 31 2008 when Satoshi Nakamoto published the white paper of Bitcoin and till now. And it is still the main indicator of the crypto market, but also it is the most manipulative coin too...

[OTC]

Altcoins prices often follow bitcoin price because bitcoin is the king of cryptocurrency in the cryptocurrency industry.

[Gostevoi]

because bitcoin has a big impact on altcoins and so they repeat the fall and rise in the price of bitcoin

[christofyler]

There are lots to that but I will give little explanation in my knowledge... Bitcoin and Ethereum are the two major coin Altcoin pair with when trading, when btc is increasing ETH is also increasing most often and majority of Altcoin makes use of ETH blockchain why some pair with ETH or BTC. I think that is making Altcoin price often follow bitcoin price.

[DelevIsak]

There are lots to that but I will give little explanation in my knowledge... Bitcoin and Ethereum are the two major coin Altcoin pair with when trading, when btc is increasing ETH is also increasing most often and majority of Altcoin makes use of ETH blockchain why some pair with ETH or BTC. I think that is making Altcoin price often follow bitcoin price.

Bitcoin and the coins that were build after Ethereum should have a price really similar to the two.