Why do most cryptocurrencies rise and fall together?

[Silberman]

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?

There are several factors but the most obvious is that those that are invested in bitcoin are also holding altcoins and when the price of bitcoin goes down they sell their altcoins to cover some of their losses which in return makes those altcoins to go down, the opposite is not always true however, and the reason for that is that the market of bitcoin is many times bigger than the market of altcoins, and if to all of this we add that the volume on many altcoins is very thin and in many cases it is falsified by the exchanges then any drop on the demand it is more than enough to make altcoins to go down in price as soon as those interested in that market stop investing in them.

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[Koro-Sensei]

It is mainly due to pairing type of assets. The lower the price of Bitcoin, you can see most of altcoins are also in a red positions. Maybe some are immune to this but most of them aren't. But surely some strong alts are somehow could fight this trend like ETH (mid may) where it outrun BTC in terms of chart. However, it wasn't that long. Eth followed what BTC has gone through and it didn't sustain what it had.

[romero121]

Each and every cryptocurrency that has existed in the market has dependence on bitcoin. Even some cryptocurrency doesn't pair with bitcoin, but it'll fall when the bitcoin is bearish. This is common, and very few cryptocurrencies stand high or grow independent unlike the market of bitcoin. Those are manipulated or centralized assets. Most of the time those coins were also manipulated according to the market of bitcoin. This too is a way to make the asset have good number of investments.

[ziyaaa]

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.

[CaVO32]

Each and every cryptocurrency that has existed in the market has dependence on bitcoin. Even some cryptocurrency doesn't pair with bitcoin, but it'll fall when the bitcoin is bearish. This is common, and very few cryptocurrencies stand high or grow independent unlike the market of bitcoin. Those are manipulated or centralized assets. Most of the time those coins were also manipulated according to the market of bitcoin. This too is a way to make the asset have good number of investments.

Most alts are indeed dependent on btc market. However, there are few alts that can have their own price movement, that is, if the team is strong enough to contradict what is happening in the current market. Just be careful with pump and dump coins, because usually they don't follow the btc market but it is up to the team who will do such pump and dump strategy. But all the others, they just follow the market trend of btc.

[ultrloa]

Each and every cryptocurrency that has existed in the market has dependence on bitcoin. Even some cryptocurrency doesn't pair with bitcoin, but it'll fall when the bitcoin is bearish. This is common, and very few cryptocurrencies stand high or grow independent unlike the market of bitcoin. Those are manipulated or centralized assets. Most of the time those coins were also manipulated according to the market of bitcoin. This too is a way to make the asset have good number of investments.

Most alts are indeed dependent on btc market. However, there are few alts that can have their own price movement, that is, if the team is strong enough to contradict what is happening in the current market. Just be careful with pump and dump coins, because usually they don't follow the btc market but it is up to the team who will do such pump and dump strategy. But all the others, they just follow the market trend of btc.

Right that's why we see almost whole in the market crash once  BTC price collapsed to and it will happen  the same when it goes up. I don't follow to much alts right now since I've been away trading in the market for long months but I notice Smooth Love Potion(SLP) from axie infinity still  doing great even if the market is really in bad shape.

[Cling18]

Bitcoin is the father of all cryptocurrencies and to be honest, most altcoin holders also hold Bitcoin. Every time the price of Bitcoin pumps and dumps, altcoins follow its trend and as a top coin, it always dominates the market. Most altcoins depend on Bitcoin so most investors are always seeing it as a generic pattern.

[Darker45]

You may also want to take note that there are a lot of times when the rise and fall of cryptocurrency prices greatly vary depending on whether you are looking at them in their USD value or BTC value. It is possible, for example, that when you look at their prices in terms of USD all of them register a considerable growth. But that might have been solely due to the price growth of BTC. If you look at their prices in terms of BTC at that exact moment, the picture may be completely different. They may actually be all in red. They could all be falling in terms of BTC while rising in terms of USD.

[Robinson66]

If Bitcoin falls, someone in the market will panic and sell their coins. When Bitcoin rises, everyone thinks that they are getting better again, and they will buy their favorite coins, causing the coins to rise.

[ethereumhunter]

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?

That is because bitcoin is the leader in the crypto market so when bitcoin moves to go up, most coins will follow behind bitcoin and vice versa. The market will panic if bitcoin drops to the lower price as what we saw before, which bitcoin drops to $29k but suddenly, in the next few hours, bitcoin price can increase to $30k and finally, bitcoin can break $32k. It will be like that and as long as bitcoin is still a crypto market leader, the other coins will follow bitcoin.

[Roy Asher]

Bitcoin is the virtual currency with the highest market value in the market. Every time there is a big fluctuation or news that affects the market, it will affect other currencies. Because there is a correlation between altcoins and Bitcoin, once there is a panic in the market Emotions, no matter what the factor is, mainstream currencies or other currencies with a large ratio will rise or fall together.

[Tina H]

I think Bitcoin can be understood as a confidence index for virtual currencies. Just like now, as soon as negative news comes out, it is easy to collectively decline, which is almost synchronous, but there are individual declines that are different.

[Connor Britton]

Because the rise of many altcoins depends on Bitcoin. If Bitcoin falls, some novices will panic and sell their tokens, causing the price of tokens to fall. When Bitcoin rises, everyone believes that Bitcoin will start again. If you buy, other tokens will also be purchased by others, and the price will rise, but the price of cryptocurrency will not always rise with the price of Bitcoin. It depends on whether everyone believes in the tokens they buy.

[Kittygalore]

I think Bitcoin can be understood as a confidence index for virtual currencies. Just like now, as soon as negative news comes out, it is easy to collectively decline, which is almost synchronous, but there are individual declines that are different.

Well, that's what happens when people creates an imaginary umbrella that doesn't have anything to do but make a chain reaction, I mean these crypto are different but the problem is people always make it look like they follow bitcoin so the lie becomes the truth which shouldn't have happened.

[blue_nexus15]

The success of Bitcoin has led to the development of many other cryptocurrencies.  these altcoins are all self-sufficient based on the Bitcoin protocol.  Most of these coins are still cheap and easier to buy or mine.  so all cryptocurrencies are affected by bitcoin, bitcoin goes up, all altcoins go up and vice versa, bitcoin market fluctuates with an unstable downward trend then cryptocurrencies will  There is a phenomenon of selling out because of fear and panic

[wahyu wida]

bitcoin holds the majority capitalization, than any other coin. maybe this is what it says that bitcoin is the mother of other coins. so that whatever happens to the movement of bitcoin will be followed by most other coins. this is very visible when bitcoin is red, then other coins also experience a decline

[Rruchi man]

FOMO. Fear of missing out or loosing is the reason why most cryptocurrencies rise and fall together. When people watch the market news and there's a negative news that they know will affect cryptocurrency market, they either pump and dump their current crypto holding depending on the kind of effect the news is predicted to cause. Nobody wants to lose so they do what they have to do. And as we already know, most of these coins are  tied to BTC.

[conected]

bitcoin holds the majority capitalization, than any other coin. maybe this is what it says that bitcoin is the mother of other coins. so that whatever happens to the movement of bitcoin will be followed by most other coins. this is very visible when bitcoin is red, then other coins also experience a decline

- Capitalization is still not an exhaustive reason, here we should further analyze the currency pairs listed on each exchange, each of which will have a conversion between it and bitcoin, this means that when bitcoins are down, the relevance of these tokens also affects investor funds, to keep capital stable would require a currency pair like USDT and of course, with such a common goal to grab a good sell position, the value also suffers and declines

[ILuckyGuyI]

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.

[Jazzi Mahesh]

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