Why do altcoins follow bitcoin?

[TomArayaSlaya]

Is true money moves and it seems no new entry of money on any particular coin so i think maybe if to say new investor decide to embrace say ethereum at the time while bitcoin seem stagnant where it is then it means market capitalizations moves and it may even cause a change in power in position if its strong enough..Good point I think the whole thing is about market capitalizations

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[htconem7]

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

The market is volatile and difficult to predict, so for you to trade successfully at this time is very difficult, the market is showing signs of falling into crisis and bitcoin price will be able to continued to fall deep. So the trade at this time of risk will be very high and you have to always observe and monitor bitcoin prices to be able to handle every situation when the bitcoin price drops.

[Jating]

Is true money moves and it seems no new entry of money on any particular coin so i think maybe if to say new investor decide to embrace say ethereum at the time while bitcoin seem stagnant where it is then it means market capitalizations moves and it may even cause a change in power in position if its strong enough..Good point I think the whole thing is about market capitalizations

Almost all the money come from the bitcoin market, so obviously when people move their funds from bitcoin to altcoins, bitcoin prices are affected and vice versa. That's why we always say that altcoins follows bitcoin. However, there are rare causes then both of the markets really shown good gains, just like we witnessed last year.

And I rarely see new investors going into altcoins in the beginning of their investment. Almost everyone loves to enter thru bitcoin market and once they gain confidence on how investments and trader operates, we will see some funds moving out of the bitcoin market and flowing into alts. So there's strong correlation between the two and that it how the market works.

[knightmairesaint]

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

There are many reasons for that, to begin with this is the market of cryptocurrencies and in order to buy most alts you need to first buy bitcoin, so if people are selling bitcoin then that means that less money is in the market of alts, also if you look at the market dominance of bitcoin it is almost 40%, while that is lower than in the past any movement of bitcoin influences the market greatly and alts cannot avoid being affected by it.

Although altcoins are independent as a token, they couldn't avoid being affected by any price changes in bitcoin. Bitcoin may be the number one crypto but that doesn't mean that all remaining coins shall bow down to it. We have a volatile market that in anytime their prices can change but right now, it seems like when bitcoin is at dump, altcoins follows. As I have notice, traders are more likely to sell their coins when bitcoin dump because they think that altcoin will surely dump too. Imagine that there is already a panic sell in bitcoin and then there will also be in altcoins, the market will surely be on red.

[MrFeasible]

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

Unfortunately, people cannot separate BTC and ALTs. In reality, I think that with the increasing usage of Ethereum as a base platform, I think the ALTs following BTC will reduce longer term

[binghope]

Everyone's demand for bitcoin is increasing, but the total supply of bitcoin remains unchanged, because of the fact that bitcoins do not have inflation and the currency is inflationary, so the altcoins  follow bitcoin

[congnghi100]

TL:DR Simply put, alt gains aren't an indication of more money moving into the market (at least right now), gains are pumped and lost because money is simply being moved around from one position to the next and not indicative of growth.

This is a really complex question and its going to take a lot to answer...  

First of all, bitcoin's stability is the entire market..... imagine it as bitcoin being the trunk, ethereum is the larger branches.. and other altcoins are the leaves... Anytime the trunk isn't healthy the branches and leaves cannot flourish, and will quickly wilt or die.. but when bitcoin's trunk is really strong it creates a healthy cycle for the alts and branches to flourish.   The analogy doesn't answer the question though but it does explain how it operates..but the real question is why?   To me, the main reason this happens is not for fear or panic, but more for an opportunity.  People think of cryptocurrency as long-term investments,, which the market doesn't honor.  As you can see recently with alts pumping then pulling back as BTC needed some support, that simply no new money is coming into this space and is simply moving around.  For example.. look at Tron for its Mainnet or Verge for its lolpornhub announcement.. no new money came into this space for those events, money frankly just moved from one place to another.  Whales and smart money know when BTC is dropping to abandon alts not because they fear having them, but because they can capitalize on the capitulation of noobs and simply just pull their money away and wait for others that don't know whats going on to panic.  But hodling isn't the answer either, since usually when alts pump alot of the gains are often lost rotating from one place simply to another.  Imagine you have like a rotating face.. alts on one.. btc in another.. tether or USD in another.  Alts are completely out of position 2 out of 3 times.. and not only will they not gain, theyll lose to people leaving them to cause a position trade.   So the only way to really deal with this is to buy alts at the bottom of a BTC trend and sell them at the top of a BTC trend.. then either hold BTC to buy alts later or switch to tether and take advantage and double dip of staying in the right facing position.....

The next thing you're going to ask is why doesn't something like TRX/USDT disconnect.. the reason is it gets corrected by arbitrage algo bots.  If there is a way to make money with an unnatural gap selling TRX to USDT and selling USDT into BTC back into TRX, the unnatural gap will be closed.. so even in this instance USDT doesn't make any sense.. on top of that USDT is just an altcoin not proven to be backed up by anything so you'd STILL have to back into BTC or ETHER to cash out back into cash on your preferred exchange.

To be fair, I know it sucks, but its just the way it is.  The best way to deal with this is to do as everyone else does and move in and out of positions that will make you the most money... fundamentally I'm really bullish on a lot of alts, but if you're here to make money you have to play the smart game like everyone else.   People position trade and do whatever makes the most money.. until it becomes a more regulated market and the speculation becomes more real use cases, I would expect it to get worse before it gets better.

Thanks for your sharing!

[BlueStackz]

bitcoin is the largest digital currency, and most trusted for now. so, a decrease, or a high price increase will make a considerable influence on altcoin. besides, altcoin always has a backrest with bitcoin price, or ETH, so of course it will make a considerable effect.

Actually this is the crypto market and man promotions are almost the same about different coins. The main difference is in value which depends upon the demand of people, Bitcoin has highest value while Altcoin has different value that of Ethereum has different. So the main similarity is its digital nature and people consider it the same that is why these coins affect the same sometimes.

[ValerieBTC]

They follow bitcoin it is simply because most altcoins are in bitcoin's exchanger or market. When the price of bitcoin goes up the altcoins also therefor  when bitcoins are dumping they also does. But some altcoins are in ethereum or tether exchanges that's hwy they are not affected in bitcoin's status.

Yeah you are right. Many Altcoin are changes with bitcoin and the market cap is influenced by the cap of bitcoin. It is not good and I am against this strategy because many investors have small capital and they cannot invest in bitcoin. They want to hold some Altcoin and if they are on the way of bitcoin they there is no benefit to invest in such Altcoin. It is just a waste of time.

[blindminer]

The fact that people wanting to speculate within the altcoin market are forced to buy Bitcoin first provides a constant bullish flow for Bitcoin, because when the shitcoin you are buying doesn't do well, people typically go back to Bitcoin and hold it in there to regain loses, since anywhere else and you may be holding a bag all the way down to stagnation ville.

Believe it or not, there are some hidden gems which have their own rallies during Bitcoin bear markets, these are extremely hard to find. For instance, I expected XSN to pump due the hype that their TPoS solution would cause and it was a great hedge as my BTC count has gone up even if my USD count went down, and im interested in raising my BTC count up, not USD, for I know BTC will recover against USD eventually. So with a bit of research and a bit of luck you can still profit from altcoins during Bitcoin bear periods.

Very interesting point of view. Both markets are corelated as anyone planing to play the altcoin market needs to buy Bitcoin or Ethereum. But that would still only explain the synchronous volume pikes...it does not explain the pricing.  

[pavelkor]

When btc goes up, all coins follow him, when he goes down, all do the same, so it is a king, a real value that has shown impressive resilience to FUD in the past.

[faithupgrade]

I guess the main reason is because, most of the time BTC is being used to buy these alts. Never heard people buying alts using Paypal or creditcard. So alts being so much to Bitcoin. Whenever Bitcoin is going down. Alts are going down too.

[Kurokyy]

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

Bitcoins is tethere to altcoins and ethereum today is the base price of all new cryptocurrency that is being released by an ico so its normal for the price of every cryptocurrency to drop if bitcoins go down.

[xitrum]

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

You can easily see the market in recent days is fluctuating continuously, bitcoin prices are constantly adjusting and cause prices of altcoin are constantly falling, so I think that at this point you Should be careful when trading, only a small fluctuation of the bitcoin price can also cause the price of altcoin drops very strongly.

[HELLOFF]

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

You can easily see the market in recent days is fluctuating continuously, bitcoin prices are constantly adjusting and cause prices of altcoin are constantly falling, so I think that at this point you Should be careful when trading, only a small fluctuation of the bitcoin price can also cause the price of altcoin drops very strongly.

The fact is that all the Crypto currency has always been very dependent on the price of Bitcoin. On the one hand, this is very wrong, Because I do not see any decentralization here, especially if large whales artificially manipulate the market. but in the near future I think this situation will change and Bitcoin will lose its importance in the crypto-currency world.

[whaawh]

When btc goes up, all coins follow him, when he goes down, all do the same, so it is a king, a real value that has shown impressive resilience to FUD in the past.

Of course, the entire crypto-currency market is very dependent on Bitcoin and the Price of each coin is tied to how Bitcoin feels on the exchanges. But you are a little wrong, because today there are a lot of resources where you can buy a crypto currency using a credit card.

[shulio]

Nearly all alt-coins are bough and sold with Bitcoin. This is why a price movement happens in altcoins when there is a price movement in Bitcoin price.

[cryptosluck]

all altcoins price  are valued in bitcoin so these coins should go with the following of the price of bitcoin as long as bitcoin price increases this price also increase

[BitHodler]

Of course, the entire crypto-currency market is very dependent on Bitcoin and the Price of each coin is tied to how Bitcoin feels on the exchanges.

Doesn't that sound badly wrong (not in the way that you are wrong)? Altcoins focusing on different parts of the industry should at all times follow their own path, and not look at what Bitcoin is doing.

In current market it is understandable that all coins are moving in the same direction due to regulations, but even in the years before altcoins always followed Bitcoin's movements.

Ethereum for example has a completely different position in this industry, why should it go up or down with Bitcoin? I can buy or sell Ethereum from all services directly with fiat. I no longer need to use Bitcoin as bridge.

[ecnalubma]

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

Bitcoin is the base price of all altcoins so it make sense when the Bitcoin price go up and down following coins are affected too. Same as the traditional market using USD. But I am impressed with some altcoins nowadays, some of them are independent and can resist BTC's price action well I guess it depends on the community holding those coins.