Why Altcoin prices often follow Bitcoin price

[pokxon]

Bitcoin is the first crypto currency. It's popular and with very little supply, next to exploiting a bitcoin, you have to spend a lot of money to exploit bitcoin. Bitcoin is the currency that people always want to own, which gives it the lead in the cryptocurrency. You can see that bitcoin decreases the altcoin decreases. Bitcoin increases, all altcoins increase, but you may notice, Bitcoin increases to a certain extent, altcoin can recover prices again. Bitcoin can be said to be worth the price for the altcoin and stabilize the market price.

[xGeraValerax]

In fact, no difference. And that and that - кpиптoвaлюты. If we talk about any specific crypto currency, then the difference, of course, will be. First of all, this is the algorithm on which the crypto currency lockdown and the type of encryption used in the blockroom work. But most importantly, what interests users is the price of a specific crypto currency and the possibility of mining.

[Borisb52]

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?

While prices for altcoins are highly dependent on the price of bitcoin. But there will come a time when the altcoyins will begin to live their own lives and not depend on bitcoin. This will happen when the market capitalization is greatly increased.

[Zhagedu]

Don't in any way have resemblance in price in the market. Can a mother in any way have the same price with her daughter in a real world? aren't the two female? if mother is $10,000 then daughter will be $6,000-100, varies with value place on them. i think that there will be a time were altcoin price will often follow or will follow Bitcoin price. Just my candid opinion.

[poplolnman]

This question has been asked multiple times in every crypt-related forums but there's no definite answer as to why altcoins tend to follow bitcoins price. The only reason I can think of is that bitcoin is the "king" and that most altcoins are paired with bitcoin.

True and just because of altcoins paired with Bitcoin it's doesn't mean it should always following Bitcoin trends , just in the most case it is due some altcoin has no conventional currency pair , that's why it follows.
But when there's a pair to usd or euro etc sometimes it dropped due the altcoin stay stronger at conventional currency pair rather than to Bitcoin pair , as for the result it's not always.

[brotherwood12]

dunno , i get this pattern

btc up --> alt coin down ( but the usd sometimes up )
btc down --> alt down
btc stable --> alt up

i think because btc the fundamental of crypto , so they are following to it

[ghost424]

Some alternate coins follow Bitcoin because it has become a basis of prices for almost every other alternate coins and Bitcoin is one of the fastest way to convert it into real money and because of this reason, it follows the price of Bitcoin to set their own standards.

[batang_bitcoin]

Do they really?

Yes it does.

And i have no idea as to why.

When you are about to buy an altcoin that catch your attention. What do you need before purchasing that coin? Bitcoin, right? so that's it.

Why the heck is their price so closely connected despite being so fundamentally different?

There's a domino effect and bitcoin's dominance was followed by the altcoins.

dunno , i get this pattern

btc up --> alt coin down ( but the usd sometimes up )
btc down --> alt down
btc stable --> alt up

Yep this is the pattern that what is noticeable during the market ups and downs. You can also add btc up --> alt up. It's unpredictable.

[jins937]

I think people focus on bitcoin and when they see that its price is falling or rising, they start to sell or buy altcoins.

[Baoo]

Honestly, everything in the market  is related to the development of Bitcoin, so when it will rise, then the majority of cryptocurrencies will increase too and the same thing happens when the opposite is achieved . Furthermore, the most of crypto are the followers of Bitcoin and for example, when we saw the last crisis in Bitcoin ( when their price dropped to $ 7000 and $ 6000 ), then all the market ( like, Ripple, Ethereum, Cardano ...)  decreased with a huge value and this is an expected thing.
In my opinion,  this is  the main reason the relation between Bitcoin and Altcoin's :
( selling Altcoin + buying Bitcoin ) & ( buying Bitcoin + selling Altcoin ) = Equilibrium

[timmeyh]

Well, the answer is plain and simple: because Bitcoin is the top dog, the original, the first, the chosen one, whatever you want to call it. It is the biggest price and biggest influencer due to it being most widely used as crypto currency.

[gune68gune]

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?

The same question that comes to my mind. What you mentioned is something I am observing. What exactly is the relationship of bitcoin and altcoin seen from the price so that altcoin is seen as the tail of bitcoin. I think maybe it's connected because of the demand and the sale of both. When bitcoin prices are high, many investors are trying to invest in altcoin to take advantage of the situation.

[StevenPop]

Altcoins are all paired up with bitcoin in their trading pairs which the reason why the price of bitcoin affects the price of altcoins so much. When the transaction volume for bitcoin decreases then that also means that the amount of bitcoin being used for trading has decrease and makes the prices of altcoins drop

[Neymar10]

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?

It is bound by one simple reason, bitcoin it's a currency in the whole cryptocurrency market and all the coins are traded in pairs with him so we have such a situation

[KeithBeeCham]

The price of altcoins in this market always depends on the Bitcoin price is understandable because Bitcoin is currently the number 1 market as well as the highest exchange rate in the market. Thus the exchange rate of the entire cryptos will depend on Bitcoin rates. If the exchange rate of BTC decreases, altcoins increase and altcoins increase, BTC will decrease.

[Melvin Narag]

Most altcoins prices or values are depending on Bitcoin like many currencies depend on the value of dollar they are in similar way so you can't say that some altcoins can snap the position of the Bitcoin as the top with the top price.

[grknondr]

The question is interesting. I havent thought the reason yet but unfortunately altcoins depend on Bitcoin which makes me angry. There must be more indicators other than Bitcoin or buy-sell balance.

[Lexurdania]

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 altcoin price following bitcoin price because bitcoin have biggest market cap in the market and when bitcoin price drop, many investor will worry about altcoin and start to selling too. Investor always make bitcoin as bencmark in cryptomarket and I think thats affecting on altcoin

[l10no]

it is a very easy question to answer. as we know, bitcoin is the parent of altcoin, so the benchmark of altcoin prices is bitcoin. if bitcoin prices are in trouble, so auto altcoin prices will also be problematic,  vice versa.

[Megababa]

Virtuallly because btc is the king of crypto and it sets the trajectory or pace for other cryptos to to follow. Look forward to a day alts price wont have to be dependent on btc but it obvious it is not now.