Why do most cryptocurrencies rise and fall together?

[BuNga_cute]

I think the reason is that the rest of the coins in the market are depending on Bitcoin highly. And I don't think that it will change unless a different coin takes the place of Bitcoin in terms of dominance. For now, Ethereum seems to be the nearest to do that.

Because until now Bitcoin has always dominated the market, so almost all coins move to follow the Bitcoin price. So the movement of Bitcoin becomes
a trendsetter in the crypto market, if the price of Bitcoin pumps, it is likely that the crypto market will have a bullish trend. Vice versa, if the price of
Bitcoin dumps usually the crypto market will be in a bearish trend. In conclusion, the price of altcoins is very much affected by the price of Bitcoin.

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[Wakate]

I don't really know but I think the number of buying and selling can determine if it will shake the movement of Bitcoin. If the sellers are more than the buyers, the market is going to sell because there is much sellers in the market. If the buyers are more than the sellers in the market, the market is going to buy more. More numbers of either buyers or sellers will keep on increasing or pushing the price.

[Spack17]

It's related to Bitcoin's movements actually. Because it's the most dominant cryptocurrency in the market now. So, it literally controls the other coins too. Whenever Bitcoin is having a bad period, we see its reflection on the market and vice versa. As long as Bitcoin is the number one cryptocurrency, I don't think this will change either.

[Sithara007]

My take on this is different from what the other users have posted. Most of the cryptos rise and fall together, because they have the same userbase. Those who are holding BTC will be having at least some amount of altcoins such as ETH and ADA in their wallets. So in case a large number of Bitcoin users are selling their coins, the impact will be reflected with the altcoins as well. In all probability, if someone is facing a financial crunch and selling his coins, then he will sell all his coins and not just BTC. And similarly, when these users accumulate BTC, it is very likely that they will purchase alts as well.

[jaysabi]

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?

It's because of pair trading and the fact that most market caps of alts are calculated based on their specific conversion rate to bitcoin, therefore when the value of bitcoin rises, it drags up the market caps of coins whose trading volume is based on the conversion rate.  Same for when bitcoin goes down. 

[Leviathan.007]

Yes they fall and rise together or better to say they fall and rise with bitcoin and usually all the cryptocurrecies prices movement are depended to bitcoin price movement. There are many reason for it, usually whenever the bitcoin price fall sharply in a short period of the time, the investors and traders will panic and do panic selling with all the assets and cryptocurrencies. On the other hand, whenverever the price of bitcoin rise and stays stable for some a few days the price of other cryptocurrencies will rise too. The investors usually use the relation between these assets to get benefit, also, there are some indexes such as bitcoin dominance, total, total2 for it.

[lumierre]

 Actually all altcoins follow Bitcoins global trends, although most of them are not Bitcoin forks like BCH, BSV. The reason is that if people see that Bitcoin is falling and a bear market is possible, they get rid of altcoins first, as they are more risky. So we often observe that when there is a severe crash of BTC, all other coins also crash. People are just scared and it is reasonable to sell different shitcoins when the bear market starts, but not fundamental ones.

[mindrust]

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?

Most altcoins don't really have any trading volume.

When BTC/USDt has a sharp move, shitcoinX/BTC, shitcoiny/BTC, shitcoin/USDt also move automatically towards the same direction. It looks like there is a correlation but in reality, there isn't any. It is just an illusion.

[maisao1991]

most of my opinion all coins depend on the increase and decrease of BTC, as long as BTC increases, almost all increases and vice versa BTC decreases, all decreases, have you noticed this?.

[perryxi2]

I've been in the market for a while and do you see what most coins depend on? . That is most coins will decrease in value if BTC falls. It seems that all virtual currencies were born with BTC as the place to turn their coins into value such as BTC, ETH, BNB ... based on the exchange of these coins, especially BTC price is always a factor decide everything.

[Silberman]

I have a simple explanation for this. Bitcoin has the dominance in the market. It's around 46% now. So this means that its price movements will affect the others' also. Whenever it falls, the market will fall also. Whenever it rises, it will be the same for the market too.

This is only a partial explanation, that number is much higher than what it may seem at first sight, after all what is stopping a person to create a coin with a supply of 100 million coins, sell one coin for 1 dollar and suddenly that coin is believed to have a 100 million dollar cap? This show us how deceptive that metric really is, the real market dominance of bitcoin is closer to 90% which means that most altcoins have no other option but to move together with bitcoin, and that is if the coin is any good, because if it is not then it will not grow when bitcoin grows but it will go down when bitcoin goes down and eventually it will reach a value of zero.

[sunsilk]

most of my opinion all coins depend on the increase and decrease of BTC, as long as BTC increases, almost all increases and vice versa BTC decreases, all decreases, have you noticed this?.

Yes.

That's the usual thing that the market shows as you observe it. But it's not always like that most of the time, there will be those times that you see bitcoin rises up.

And then the opposite happens for most of the altcoins and that's why alts are more prone to volatility than bitcoin. But there are also times that you see the opposite and it's the altcoins that are increasing then bitcoin goes through a short correction.

[AndySt]

I have a simple explanation for this. Bitcoin has the dominance in the market. It's around 46% now. So this means that its price movements will affect the others' also. Whenever it falls, the market will fall also. Whenever it rises, it will be the same for the market too.

This is only a partial explanation, that number is much higher than what it may seem at first sight, after all what is stopping a person to create a coin with a supply of 100 million coins, sell one coin for 1 dollar and suddenly that coin is believed to have a 100 million dollar cap? This show us how deceptive that metric really is, the real market dominance of bitcoin is closer to 90% which means that most altcoins have no other option but to move together with bitcoin, and that is if the coin is any good, because if it is not then it will not grow when bitcoin grows but it will go down when bitcoin goes down and eventually it will reach a value of zero.

It just means that the rest of the cryptocurrencies in the absolute majority do not have their own independent meaning and influence and exist only as an appendage or some analogue of bitcoin There is nothing terrible or shameful in this, because many investors will not delve into the wilds of technical documentation and terminology and will buy an asset that everyone knows about and about which everyone knows the most. And this asset has been bitcoin for quite a long time almost from the very beginning of the cryptocurrency era, and it is possible without false modesty that bitcoin created this cryptocurrency era. Bitcoin represents cryptocurrencies for investors, and therefore the trading of other altcoins is carried out with an eye on bitcoin. And if you also remember that on many exchanges, cryptocurrencies are traded and denominated in bitcoins, then this puts the final touch to the picture.

[Rajamuda]

Never trade with Cryptocurrencies, I would be learning to trade Forex and I am still on the verge of leaning the Forex.

But anyway.. does not mean that cryptocurrency is not worth entering, I think the level of risk is higher in forex. After you master forex, it would be nice if you could also try trading in crypto, more profit opportunities are widely opened for traders in the world today with the increasing popularity of cryptocurrencies.

[Kimonoe]

this seems to follow the development of bitcoin. we know a lot of people who call bitcoin the mother of other coins, so whatever happens to bitcoin will certainly be followed by most other coins. therefore I think the safest coin to invest is bitcoin

[Issa56]

The main reason why I think most coins fall at once is that bitcoin mostly controls the market whenever bitcoin dump other coins will definitely dump to because when bitcoin investors panic and sell there bitcoin they are definitely holding other altcoins so definitely they will also sell there other coins that's why whenever bitcoin fall's other coins fall too.

[Shasha80]

The main reason why I think most coins fall at once is that bitcoin mostly controls the market whenever bitcoin dump other coins will definitely dump to because when bitcoin investors panic and sell there bitcoin they are definitely holding other altcoins so definitely they will also sell there other coins that's why whenever bitcoin fall's other coins fall too.

Since the beginning Bitcoin has always dominated the market, it is no wonder that altcoins will follow the movement of Bitcoin. In the crypto world
Bitcoin is in control, so what happens to Bitcoin must affect the market as a whole. If we find that there are altcoins that pump when the Bitcoin
price falls, it's possible that someone manipulated the coins. So be careful when the price of Bitcoin falls, preferably if we are still holding shitcoins,
I recommend selling it immediately. Before the shitcoins are getting lower in price and we will experience a bigger loss, because if the shitcoins
have fallen, it is more difficult to get up again.

[AicecreaME]

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?

In cryptocurrency world, most coins are correlated with one another. When a particular coin's value increases, the other coins increase as well. Like for example, bitcoin. Whenever there's a price movement on bitcoin, the altcoins will start to move too. I think the reason behind this is because the investors tend to look at a specific coin and make it their basis on whether they would sell or hodl.

For instance, when the value of bitcoin goes up, a lot of investors are celebrating. The flow in the market will be smooth. However, when the value of bitcoin goes down, the investors panic. They overthink that it will take a while for the prices to go up. Hence, they panic sell their assets which makes the prices fluctuate in the market. Series of up and down in price charts will be seen.

[herurist]

because Btc can be said to be the core of the coins that are currently circulating and there are so many pairs of this btc so that when btc experiences an automatic decline, other coins that become partners begin to be carried away from the decline of btc.
then what about coins that are not tied to btc why go down? this is due to btc being the benchmark, because if we follow the mindset of investors and coin holders, whatever the coin, no matter how many coins they hold, they will still refer to bitcoin as the main benchmark. then automatically when bitcoin goes up the crypto market will automatically be good but on the contrary if bitcoin goes down the crypto market will also experience the impact and that has been proven.

[AniviaBtc]

Or is it caused by other operations?

It could be, especially if the big investor is the owner of the exchange but unfortunately it is difficult to detect, or other possibilities people who own cryptos other than BTC realize if BTC goes down how can cryptos that have no use value can survive in the downward trend, so panic sell begin and all cryptos suffered down.

I absolutely agree with you, people are just relying on the trend, FUD, and anything that they see online.

When people sell, most of the people will also sell because they have trust issues and they are clearly not that knowledgeable of bitcoin when it comes to market movement.

Ignorant investors are only following those big companies or popular celebrities to decide their next move in the market.