Values of Bitcoin & Altcoin are correlated

[Wysi]

I am aware some of you might not agree with my view but I strongly feel that the value of altcoins are correlated to the value of bitcoin and we have seen this in the past as value of altcoin trends according to the momentum of bitcoin, but now the real question would be "why the value of altcoins are still trailing behind wherein bitcoin has increased by leaps". All we need is a bit of patience as crypto will not go as per our expectation as it's not scripted and many might have noticed that the value of ETH was all-time high when the value of bitcoin started to dump after the 2017 bull run.

What's your opinion guys?

[ChrisPop]

It is common knowledge that altcoins are somehow connected to Bitcoin as they both enter in the category of cryptocurrencies. However I don't think that altcoins price is correlated to Bitcoin's. What I've observed is that when Bitcoin is consolidating people tend to put some of their holdings into altcoins so they can make an extra profit on the side. On the other side, if you're looking at altcoin prices denominated in USD some of them will not dump so much when Bitcoin is on a surge, maybe even increase in value while their satoshi-price stays constant.

[Assface16678]

There are instances wherein the market price of altcoins are moving in the direction as with Bitcoin. Such that when the price of Bitcoin is in green marks, the market price of some altcoins are also in greenmarks, likewise when there is a downfall. But there's no strong evidence or linkage that the market value of alts and Bitcoin are correlated with each other. Sometimes the market value of ethereum is in green while Bitcoin's on red marks which breaks the correlation formed in the idea of people in this industry. The instances wherein their market value are on the same marks is due to the influence of this market in general.

[Zeehaxan]

Let us just be patient and see the market breaking out first and by breaking out i mean breaking previous high prices so lets wait for btc to break 20k and then expect a real bull market where even alts will follow and gain big.

[okala]

The entire cryptocurrency market have it own wave and some time the way the market trend move can be confusing but in most time the entire market follows bitcoin market once bitcoin start making gain in the market the altcoins market follows. And in some cases it move opposite each other.

[ShowOff]

Somehow the two are correlated, but I think there is a point too. But did you realize that they are very different when it come to trader and investors' beliefs?

Bitcoin has a much greater confidence in being a profitable investment asset compared to altcoin. Its use as a currency is more widely used than altcoin. Although they are both tradable asset, their adoption and use will play an important role in price volatility. However, this has become commonplace, it could be that the altcoin trend has not started because trader and investor prefer bitcoin. Wait and be patient.

[Wingo]

I am aware some of you might not agree with my view but I strongly feel that the value of altcoins are correlated to the value of bitcoin and we have seen this in the past as value of altcoin trends according to the momentum of bitcoin, but now the real question would be "why the value of altcoins are still trailing behind wherein bitcoin has increased by leaps". All we need is a bit of patience as crypto will not go as per our expectation as it's not scripted and many might have noticed that the value of ETH was all-time high when the value of bitcoin started to dump after the 2017 bull run.

What's your opinion guys?

The price movement is actually correlated if you observe the Bitcoin dominance chart. Bull runs in the market are actually triggered when there is a decline in bitcoin dominance.
In 2017, the dominance fell below 40%, triggering a bull run not just for the alts but for the whole market.
Earlier this year, the dominance fell below 60% and it also triggered a short lived alt season, but I still hope this alt run is not yet done.

https://www.tradingview.com/symbols/CRYPTOCAP-BTC.D/

[Valak]

Actually the value of Altcoins is fixed, it's just that if we exchange rates with USD it becomes high because the Bitcoin price has increased. For example, the price of Dogecoin in BTC is 0.00000021 if we exchange it in USD $ 0.00274 with the price of BTC $ 13k. If the price of BTC increases to $ 15k then 0.00000021 BTC becomes $ 0.00315 so the price of Dogecoin becomes $ 0.00315.

[kingzpro]

Yes they are correlated especially if we look them in a larger context of overall crypto market and overall sentiment. Just like now the sentiment looks positive and expectations of a huge bull run are there so i am hopeful that in coming weeks the price of bitcoin as well as the top alts will grow but depends on the momentum and the intensity of the bulls in the market.

[Wysi]

It is common knowledge that altcoins are somehow connected to Bitcoin as they both enter in the category of cryptocurrencies. However I don't think that altcoins price is correlated to Bitcoin's. What I've observed is that when Bitcoin is consolidating people tend to put some of their holdings into altcoins so they can make an extra profit on the side. On the other side, if you're looking at altcoin prices denominated in USD some of them will not dump so much when Bitcoin is on a surge, maybe even increase in value while their satoshi-price stays constant.

I respect your opinion and you have shared a valid reason not to believe that the value of Bitcoin and altcoins are not correlated when it comes to increase in value of altcoin during surge of bitcoin's value but do you think same logic applies when the value of Bitcoin takes a hit and goes through bearish market? As whenever there is a dump in the value of Bitcoin we have always noticed dump in the value of altcoins and that's how I feels that's the value of Bitcoin and altcoin are correlated regardless of factors driving them.

[Princejebs]

Let us just be patient and see the market breaking out first and by breaking out i mean breaking previous high prices so lets wait for btc to break 20k and then expect a real bull market where even alts will follow and gain big.

While waiting for the market to break all time high of 2017, we should not also forget the euphoria of candles. There is market cycle at every bull run and correction is imminent for every pump, this happens in traditional markets as well.
Btc may break 20k but that doesn't mean alts will follow the same pattern. There were many factors that contributed to every altcoins pump in the last huge bull run. So many ignorant individuals with little or no knowledge about cryptocurrency, ICO were over hype then in the past.
Now, things are clearer for everyone except for the DeFi mini bull run that has backfired in many cases.

[shinratensei_]

Im not sure about what will be the main reason but the possible reason could be the bitcoin traders were using the altcoins as alternative coins to did pump and dump.

Just imagine when bitcoin is very volatile and even when bitcoin was getting pumped, altcoin was still facing the downtrend. That means the reversed thing happened with altcoin caused by there were so many altcoins traders are moving to the bitcoin but the bitcoin traders will be moving and try to speculate altcoin when bitcoin gets stable. My main point if there less volatility in the bitcoin market and that will be making the bitcoin traders jumped into the altcoin market.

[Danslip]

Obviously, there is a correlation factor between all parts of the financial ecosystem and the altcoin market volatility is the mirror effect of BTC volatility. The price action in BTC markets has to affect the altcoin markets, so following the main trajectory of BTC can give a hint which way the altcoins index will head. Volatility will kill the profitability of the short term trades but there is no risk for long term HODL. The altcoins are still risky to make a investment decisions, that is why I advise being careful and checking the all conditions before entering the market of small marketcap altcoins.

[Johnyz]

Bitcoin and altcoin have their own timeline. Sometimes, altcoins follows the trend of bitcoin and most of the time bitcoin pumps alone so its hard to say that they are correlated to each other. Although it happened many times, it still a theory and speculations. The values of cryptomarket will continuously grow overtime, buy now with good coins.

[error08]

~ the real question would be "why the value of altcoins are still trailing behind wherein bitcoin has increased by leaps". ~

Whenever bitcoin prices take a leap mostly caused by the huge influx of money from corporate institutional investors or companies buy Bitcoin as part of their reserve assets.
For example, Grayscale Investments bought over 17,000 bitcoin last month, US payments company Square had purchased $50 million worth of bitcoin earlier this month and US tech firms Microstrategy increased its holding of bitcoin as much 38,250 worth over $500 million. you can check bitcointreasuries.org for more information.
That's why bitcoin price surge in a relatively short time but not the case for altcoins, people start to realize that bitcoin is too high-priced to make more profit compare with purchasing cheaper altcoins, then altcoins price slowly increasing following the steps of bitcoin.

[cryptonx]

I am aware some of you might not agree with my view but I strongly feel that the value of altcoins are correlated to the value of bitcoin and we have seen this in the past as value of altcoin trends according to the momentum of bitcoin, but now the real question would be "why the value of altcoins are still trailing behind wherein bitcoin has increased by leaps". All we need is a bit of patience as crypto will not go as per our expectation as it's not scripted and many might have noticed that the value of ETH was all-time high when the value of bitcoin started to dump after the 2017 bull run.

What's your opinion guys?

most of altcoins will be in red colour when bitcoin price pump,
and when the corrections coming to bitcoin the price of solid altcoins will growing hard
wich mean for now patience is the key

[cepot9]

Naturally, when bitcoin rises, altcoins will automatically follow suit, but altcoins have not followed the bitcoin increase party in the last few days. However, altcoins are not completely out of step as there are still altcoins that are already moving along with the party even though they are slow. This is quite normal for the current conditions

[leea-1334]

Because altcoins had their fun during Defi,,, and now defi space is bleeding like ICO days so Bitcoin's rally is actually helping to reduce the blood from Defi.

That is my opinion, and the sooner defi stops becoming hype the better so we can grow properly and in a more organic way.

[Silberman]

I am aware some of you might not agree with my view but I strongly feel that the value of altcoins are correlated to the value of bitcoin and we have seen this in the past as value of altcoin trends according to the momentum of bitcoin, but now the real question would be "why the value of altcoins are still trailing behind wherein bitcoin has increased by leaps". All we need is a bit of patience as crypto will not go as per our expectation as it's not scripted and many might have noticed that the value of ETH was all-time high when the value of bitcoin started to dump after the 2017 bull run.

What's your opinion guys?

Since the term altcoins includes thousands of coins it is difficult to take such a wide generalization, new coins for the most part are not correlated with bitcoin as they move in price depending on their own internal dynamics, if the coin is good or there are pump and dump groups behind the coin it goes up in price regardless of what bitcoin is doing, and if the coin is bad it crashes independently of what bitcoin does, however I will agree that the major altcoins with the exception of stable coins are heavily correlated with bitcoin as that is what my studies have showed me when I was investigating this subject.

[asriloni]

Because altcoins had their fun during Defi,,, and now defi space is bleeding like ICO days so Bitcoin's rally is actually helping to reduce the blood from Defi.

Those who are getting big lose in altcoins will try to join in the momentum that has made by bitcoin. Just think the altcoins traders who have been facing a big loss try to recover their money through shorting the bitcoin.
So many traders were always trying to shorting bitcoin when the bullish trend has come. This is based on my observation too.

the sooner defi stops becoming hype the better so we can grow properly and in a more organic way.

When the defi hype will end, there will always be a new hype. Dude, NFT has already started to be the next trend. BTW some new projects have started to introduce NFT combined with DEFI.