Why do most cryptocurrencies rise and fall together?

[SquallLeonhart]

I think the simple reason for the downward trend in bitcoin prices that also affects other coins is because bitcoin is the mother of all coins.

and another reason is that Crypto Assets price volatility is mostly based on hype which often keeps interest high. The price drop can be affected by a post on social media and what other people in the Crypto Asset world are posting. In the area of ​​Crypto Assets, news really has a significant influence on the situation in the market.

That is actually true for stock markets as well. You think stock markets dropped because of pandemic? It didn't really dropped for pandemic at all because many many companies made even profits during that same period, but it had a huge crash because people were afraid and sold their stocks.

I know that we do not really have any proof for this or any data, but we can clearly say that even if a company is doing amazingly, if people just want to sell then they can sell and drop the price, which means a company doing amazing business but dropping in stock price, rarely ever this would happen but it is definitely something possible. The difference is that news makes a lot more impact in crypto because regulations are very harsh and volume is very little which means that crypto could be moved like crazy without a problem at all.

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[cheezcarls]

Observing the cryptocurrency market, we found that although most cryptocurrencies have price differences, most of them will fluctuate with the price trend of Bitcoin. When the price of Bitcoin increases, most other cryptocurrencies will also increase, and vice versa.
Is this trend due to large accounts operating on multiple exchanges or countless retail investors carrying price differences? Or is it caused by other operations?

This is likely because most of the cryptocurrencies are still influenced with the major moves of Bitcoin. As Bitcoin rises, others will follow and the same thing goes if it goes southward. Bitcoin is the most popular cryptocurrency worldwide and it's likely the mostly-used cryptocurrency to be exchanged to various altcoins.

[Golftech]

Observing the cryptocurrency market, we found that although most cryptocurrencies have price differences, most of them will fluctuate with the price trend of Bitcoin. When the price of Bitcoin increases, most other cryptocurrencies will also increase, and vice versa.
Is this trend due to large accounts operating on multiple exchanges or countless retail investors carrying price differences? Or is it caused by other operations?

This is likely because most of the cryptocurrencies are still influenced with the major moves of Bitcoin. As Bitcoin rises, others will follow and the same thing goes if it goes southward. Bitcoin is the most popular cryptocurrency worldwide and it's likely the mostly-used cryptocurrency to be exchanged to various altcoins.

Bitcoin use as benchmark of this market, most of the time it reflects to each alts whenever bitcoin pumped

up, hypes happened and more alternative assets recieved good amount of increase, same goes when bitcoin

start to dumped down, there's also a domino effects that place most if not all of alts market to suffer.

[Hamphser]

Observing the cryptocurrency market, we found that although most cryptocurrencies have price differences, most of them will fluctuate with the price trend of Bitcoin. When the price of Bitcoin increases, most other cryptocurrencies will also increase, and vice versa.
Is this trend due to large accounts operating on multiple exchanges or countless retail investors carrying price differences? Or is it caused by other operations?

All matters with the demand and volatility would always be that in common and also talking with trends then it is likely that majority of coins will really correlate with Bitcoins trend which does simply means that

whenever bitcoin is on bullish or bearish then they do tend to get pulled off with that one and would follow.Although not all the time but as we do observed on this market then it is mostly been happening.

Thing here as a crypto investor then you should know on how to ride off with these waves for you to make money.

[Fortify]

Observing the cryptocurrency market, we found that although most cryptocurrencies have price differences, most of them will fluctuate with the price trend of Bitcoin. When the price of Bitcoin increases, most other cryptocurrencies will also increase, and vice versa.
Is this trend due to large accounts operating on multiple exchanges or countless retail investors carrying price differences? Or is it caused by other operations?

You'll actually find a similar trend within the stock market - both with the market overall and with certain industries within the market. For example you might find a short term situation where pharmaceutical companies undervalued, water utilities overvalued and bigbox retailers undervalued. When people are afraid there can be a stampede for the exit and everyone tries to get out. Sometimes there is forced selling involved or leverage which can amplify the effect on the way down, causing domino and ripple effect. If somebody loses on Bitcoin, they might decide they want to cut their losses in all cryptocurrency and run - never to return. To answer the question you would have to be able to perceive the independent actions of millions of people living complicated lives and the psychology that drives their trading decisions.

[Republikcoin.com]

This can happen because there are two possibilities that could happen or even really happen simultaneously.
The first is that Altcoin pairs are generally BTC, for example ETH/BTC, CAKE/BTC, BNB/BTC, NEO/BTC, WAVE/BTC, so when BTC price fluctuates against USD, all coins paired with BTC will fall. also

Then the second possibility is, investor interest in cryptocurrencies is universal. This usually happens during the altseason, where all blockchain-based digital asset prices are very marketable. So that all coins and tokens will experience a price increase in a fairly short time.

[MoneyJ]

In my own observation, bitcoin is the main indicator for cryptocurrency prices. The nature of btc market is volatile because of its speculative nature and its new technology use cases may drive up the price or regulations and policies from governments may  pull the price down dramatically. Being in this space for quite a while, these are the reasons why cryptocurrencies rise and fall together.

[Boov]

Observing the cryptocurrency market, we found that although most cryptocurrencies have price differences, most of them will fluctuate with the price trend of Bitcoin. When the price of Bitcoin increases, most other cryptocurrencies will also increase, and vice versa.
Is this trend due to large accounts operating on multiple exchanges or countless retail investors carrying price differences? Or is it caused by other operations?

Basically they're falling dependent on exchange activities that caters every trading pair of a certain coins you're going to trade. What's fun things about it is the reality of market value which eventually fall during red signals tend to attract every bids.
Investors and traders also look forward on that certain movement, so the trend basically influence every person who's expecting the drops every minute.
Though other coins doesn't have very active trades, but it's common with btc and eth joining in behavior together to rise and fall.

[Duzter]

If some token price is increasing all of the sudden, then it is all because of the increase in the demand. Same time some tokens are into manipulation and pushed. This manipulation attracts people to make investment. Further some used to grow gradually while some fails. If you watch the market closer, it is very transparent to see market falling together mostly when there is crash with bitcoin. This is universal for the cryptospace.

[LUCKMCFLY]

Observing the cryptocurrency market, we found that although most cryptocurrencies have price differences, most of them will fluctuate with the price trend of Bitcoin. When the price of Bitcoin increases, most other cryptocurrencies will also increase, and vice versa.
Is this trend due to large accounts operating on multiple exchanges or countless retail investors carrying price differences? Or is it caused by other operations?

The explanation for me is simple, the only currency that has a life of its own is BTC, and therefore altcoins do not have a life of their own, they all depend on BTC, as I have said before, the only alts that go up a lot when BTC goes down are those that are driven for the "Pump" and "Dump", and there are many like that, in fact in Binance there are many currencies that have that performance, and when the pumps occur they naturally occur again in a repetitive time frame, some in months, others in a few weeks.

When BTC rises, normally the alts are stuck for a certain time, then they go up following the direction of BTC, just as when BTC falls in price, the alts bleed dramatically.

[ROSERTY]

1.Bitcoin has actually developed, and after it was invented, blockchain applications and other cryptocurrencies have been derived. The price of cryptocurrency will be affected by the price of Bitcoin.
2.Many investors refer to the price of Bitcoin when trading, and specify investment strategies based on the price trend of Bitcoin. The rise of Bitcoin indicates that the cryptocurrency market is good and investors will enter the market to buy. On the contrary, the decline indicates that the market is not good.
3.When Bitcoin prices experience high volatility, cryptocurrencies will be sold due to market sentiment.

[Sithara007]

If some token price is increasing all of the sudden, then it is all because of the increase in the demand. Same time some tokens are into manipulation and pushed. This manipulation attracts people to make investment. Further some used to grow gradually while some fails. If you watch the market closer, it is very transparent to see market falling together mostly when there is crash with bitcoin. This is universal for the cryptospace.

I have seen some tokens going up all of a sudden by 10x or 20x in a couple of days. And in 99% of the cases, the dump occurs within a few days time and the prices come back to the previous levels. Inexperienced investors always purchase these tokens, when they are close to the peak level. These guys will be stuck with the tokens and need to wait until the next pump occurs to dump them (and that may never happen in a majority of the cases). Investing in such tokens is a good way to reduce your capital by 90% in a short period.

[Lordshiva]

Thats called market. In crypto almost every currency depends on bitcoin price and movements

What's the explanation about it though? Why call it a market? Also, not all cryptocurrency depends on bitcoin prices because some have changed their dependency. The reason I think why these kind of thing happens in the market is because of the constant increase in flow of the market.

Yes most of those have changed their dependencies but still bitcoin carries many other cryptos down and fall with itself. Very rarely it happens that bitcoin going down and most other coins are going up, as it is a major portion of the market and whole crypto market depends on bitcoins.

[Dragonfund]

It's already been said a lot of times in the thread, because crypto X and crypto Y is connected or something like that, I think that there's no other explanation why it does rise and fall together meaning that this topic should be locked already or something.

Gave him the answer that he/she sick, not cast him or want the thread should be locked. There also others who will benefit that may want to add, comment or even be against the ideas list already. That's how forum work my friend.
@op, market coins are  connected like a food chain, when one goes down, the others follow. That's exactly how price of  high and low works sometimes but there situations where a altcoin will be going up or bitcoin and other to stay without profit.

[Ozero]

Observing the cryptocurrency market, we found that although most cryptocurrencies have price differences, most of them will fluctuate with the price trend of Bitcoin. When the price of Bitcoin increases, most other cryptocurrencies will also increase, and vice versa.
Is this trend due to large accounts operating on multiple exchanges or countless retail investors carrying price differences? Or is it caused by other operations?

The explanation for me is simple, the only currency that has a life of its own is BTC, and therefore altcoins do not have a life of their own, they all depend on BTC, as I have said before, the only alts that go up a lot when BTC goes down are those that are driven for the "Pump" and "Dump", and there are many like that, in fact in Binance there are many currencies that have that performance, and when the pumps occur they naturally occur again in a repetitive time frame, some in months, others in a few weeks.

When BTC rises, normally the alts are stuck for a certain time, then they go up following the direction of BTC, just as when BTC falls in price, the alts bleed dramatically.

It is hardly possible to agree with such a statement that bitcoin is the only cryptocurrency in this market that has a life of its own. We know that the level of capitalization plays the main role here and, as a consequence, the level of price dominance. Bitcoin has a very high capitalization - $ 814 billion and this figure is very different from other cryptocurrencies. Therefore, its price dominance is now 46.4 percent. This leads to the fact that almost all altcoins follow the price movement of bitcoin.

[Ryder Kudrow]

Bitcoin dominates the crypto market, and some altcoins will refer to the price of Bitcoin when trading, and trade strategies based on the rise and fall of Bitcoin.
Affected by the market panic, investors blindly chase the rise and fall, which will cause most altcoins to continue to rise and fall along with the fluctuation of Bitcoin.

[TopTort777]

Like everyone said - alts are controlled with more stronger cryptocurrency like Bitcoin. Same is with fiat currencies and economy. When a country with strong economy is down, same happens with other countries. For example when dollar becomes weak or oil prices fall down. Other countries immediately suffers from that.

[Dax Robinson]

When Bitcoin among cryptocurrencies rises, other currencies will follow Bitcoin's rise. If it wants to fall, then other currencies will basically fall. Most crypto enthusiasts are not for investment, but for speculation, resulting in insufficient liquidity.

[Helen-cty]

Bitcoin's position in cryptocurrency is quite high. As the king of cryptocurrency, it is not surprising that other altcoins follow suit under normal circumstances. The sentiment of crypto investors will be affected by Bitcoin, leading to a sell-off. In this case, the price of altcoins will fluctuate accordingly.

[oHnK]

Bitcoin dominates the crypto market, and some altcoins will refer to the price of Bitcoin when trading, and trade strategies based on the rise and fall of Bitcoin.
Affected by the market panic, investors blindly chase the rise and fall, which will cause most altcoins to continue to rise and fall along with the fluctuation of Bitcoin.

This would also be my guess why crpyto currencies have such a high correlation. Most of the investors and traders in the crypto world hold multiple coins, and if they see one of the big coins like Bitcoins or Ethereum dropping in price than they would likely sell all their other coins too. Humans are herd animals, we like to move in groups and will easily follow other people. That is also why panic selling is so sever in stock market, once a large enough number of traders start selling all the other traders will just do the same, even if they are not convinced of falling prices.

Simply, the high correlation between Bitcoin and other alternative coins because Bitcoin has market dominance of more than 45% and followed by etherium 19% and the rest are alternative coins so that with the high market capitalization controlled by Bitcoin it will become a role model for other coins besides Bitcoin and other cryptocurrencies have differences that are not large enough so that this similarity encourages investors and traders  have the same psychology when facing a decrease or increase in price