Why do most cryptocurrencies rise and fall together?

[Obito]

Bitcoin is just like a mother of all cryptocurrency whenever you see that bitcoin is going up all the other Altcoin will also go up because many people believe in bitcoin instead of Altcoin so whenever bitcoin price go up or down people also buy or sell their other cryptocurrency.

That's only natural because not every people can buy bitcoin so they try and move to altcoins as an alternative which in turn makes the prices of the said altcoins go up at the same time. And I think that most cryptocurrency are tied together because some of them follow the same network.

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[bittraffic]

Bitcoin is just like a mother of all cryptocurrency whenever you see that bitcoin is going up all the other Altcoin will also go up because many people believe in bitcoin instead of Altcoin so whenever bitcoin price go up or down people also buy or sell their other cryptocurrency.

That's only natural because not every people can buy bitcoin so they try and move to altcoins as an alternative which in turn makes the prices of the said altcoins go up at the same time. And I think that most cryptocurrency are tied together because some of them follow the same network.

Most if not all cryptocurrencies rely so much on Bitcoin's rise that once it does, all other cryptos are also going up. Once it's also going down, everyone who holds altcoins wants to move to stablecoin making these altcoins prices very volatile close to zero. Once Bitcoin is going up again, these altcoins are not worth buying anymore unless there are reasons to.

Most investors wouldn't find any reason to buy back the altcoins when they already hold stablecoin, all that is necessary to do is buy BTC when all had bottomed.

[Ozero]

This is something that will never change. Altcoins always take advantage of the Bitcoin bull runs. The recent spike was attributed to rumors linking Amazon with Bitcoin. Altcoins are nowhere in the picture, and yet they went up by 20% to 30%, depending on the coin. And this has been the case for sometime. Whenever Bitcoin moves up, it takes altcoins with it (partly because the alts are mostly traded against BTC). And when the Bitcoin prices crash, the alt prices also go down because of the same reason.

This has always been in the relatively small history of cryptocurrency until now. However, this does not mean at all that it will be so in this market in the future. The general increase in cryptocurrency prices and their general drop now depends on the large capitalization and the level of price dominance of bitcoin. This situation may well change in the future. After all, this market is developing rapidly. If bitcoin loses its price dominance over time, then there will probably no longer be a similar coin with this level of dominance in the future. There will already be several dominant coins and their price movements may already differ, which will give other cryptocurrencies the opportunity to feel more free in terms of price.

[XUNing]

Cryptocurrency is related to Bitcoin. Bitcoin has been invented for more than a decade. After Bitcoin was invented, many digital currencies that used blockchain technology were derived. Many people saw the benefits of Bitcoin and now they have developed many altcoins.
The influence of market sentiment. Many investors refer to Bitcoin price trends when trading. Many investors refer to Bitcoin price trends when trading. Prices usually fall, which makes everyone panic about the crypto market.

[shogun47]

This is something that will never change. Altcoins always take advantage of the Bitcoin bull runs. The recent spike was attributed to rumors linking Amazon with Bitcoin. Altcoins are nowhere in the picture, and yet they went up by 20% to 30%, depending on the coin. And this has been the case for sometime. Whenever Bitcoin moves up, it takes altcoins with it (partly because the alts are mostly traded against BTC). And when the Bitcoin prices crash, the alt prices also go down because of the same reason.

This has always been in the relatively small history of cryptocurrency until now. However, this does not mean at all that it will be so in this market in the future. The general increase in cryptocurrency prices and their general drop now depends on the large capitalization and the level of price dominance of bitcoin. This situation may well change in the future. After all, this market is developing rapidly. If bitcoin loses its price dominance over time, then there will probably no longer be a similar coin with this level of dominance in the future. There will already be several dominant coins and their price movements may already differ, which will give other cryptocurrencies the opportunity to feel more free in terms of price.

I doubt this dependency will change anytime soon. Bitcoin will keep its dominance for the most part. If crypto turns out to be a long-term viable investment alternative (to gold), Bitcoin will proportionally outgrow the rest of the market. It may drop a little in relative dominance, but it will cement its position at the very top of the market and therefore remain the pivotal point for all cryptocurrency evaluations.

[DPrillio]

Cryptocurrency is related to Bitcoin. Bitcoin has been invented for more than a decade. After Bitcoin was invented, many digital currencies that used blockchain technology were derived. Many people saw the benefits of Bitcoin and now they have developed many altcoins.
The influence of market sentiment. Many investors refer to Bitcoin price trends when trading. Many investors refer to Bitcoin price trends when trading. Prices usually fall, which makes everyone panic about the crypto market.

Yes, it seems most of altcoins are dependent on the market value of bitcoin and ethereum and maybe that is no doubt since the power two coins are the pillars of crypto currency most specially to bitcoin. So far most of the traders will always end up to trade altcoins to btc or ethereum before it was converted to fiat currency.

[Ebede]

Cryptocurrency is general name given to all cryptocurrencies and as they belong in different species and Chambers so shall their prices are different, the price of bitcoin is different from the of price Ethereum and other coins but the market price of bitcoin affects others why? Because the bitcoin is first among all others and immediately bitcoin is having problem for price it will reach others.

[NASdaq]

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

[indrakusumaindra]

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?

First i think every market has a trend up and trend down, Second i do think its all related to bitcoin price. You can see any media will talking about BTC and its effect to the market. Even alt season parameter is by looking at how BTC perform. Other factors that affecting the price is media and goverments acts towards cryptocurrency.

[DrBeer]

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?

Everything is extremely simple - the market is evaluated in bitcoin, as the main currency of the market, and a drawdown or growth of the cue ball always leads to a fall or rise in the price of 99% of other cryptocurrencies. In fact, the price of almost all altos is set in satoshi, which means that a change in the price of satoshi to fiat gives rise to corresponding changes in the price of altos.

[imstillthebest]

it will look bad if btc falls and altcoins are rising but i think its not that bad if btc rises and altcoins are falling because btc was the main coin anyway but they dont make this happen either instead they make the competition more fairer . what  they did is they tied the altcoin in btc and now whatever btc is doing altcoins are also following .

[tyz]

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 because still most cryptocurrency are dependent on the price trend of Bitcoin. You can say, similar to the US dollar, bitcoin is also a leading currency in its environment. If bitcoin falls, altcoins fall as well. If bitcoin rises, altcoins also rise. Usually there is always a small delay, but so far this rule has always applied. Maybe some altcoins can decouple from Bitcoin at some point and start an independent price development. This would be desirable for the entire crypto market.

[zanezane]

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.

[Lubang Bawah]

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.

Crypto trends continue to change, currently crypto does not depend on bitcoin because of the presence of stable coins such as USDC, USDT and so on, even bitcoin transaction volume is only 50% compared to USDT.

[Henrobakkara]

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.

Crypto trends continue to change, currently crypto does not depend on bitcoin because of the presence of stable coins such as USDC, USDT and so on, even bitcoin transaction volume is only 50% compared to USDT.

Even so, why does it still seems though that most cryptocurrencies depend on Bitcoin? Why do all of them follow the market pattern of bitcoin price action? aside from the stablecoins, most of the cryptocurrencies fall in price immediately bitcoin fall in price, and when you look at the price chart on the market charts portfolios like CMC and CoinGecko. you would notice a very similar pattern of most major Alts alining with Bitcoin price chart.

[ROSEDF]

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?

Because cryptocurrencies rise and fall with the rise of Bitcoin. When Bitcoin rises, everyone will buy it. When Bitcoin fell, everyone would sell their coins due to market panic. In some cases, Bitcoin will rise, but other cryptocurrencies will not rise.
And sometimes Bitcoin will rise, other currencies may not necessarily rise.

[Cindella]

1.Bitcoin as the king of cryptocurrencies, has a certain relevance to other cryptocurrencies. When the price of Bitcoin fluctuates, it will also have an impact on other currencies.
2.Cryptocurrency price fluctuations will also be affected by market sentiment. When the price changes, it is easy to bring panic to investors. Many investors will blindly chase the rise and kill the fall, causing many cryptocurrency prices to change at the same time.

[King Khaizan]

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.

[Assface16678]

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.

[Kusman]

I think that this is all about the dominance in the market. Whichever coin has the most dominance rate, it rules the market also. Bitcoin is the one now. It has a dominance rate which equals to 45.8%. The closest one to Bitcoin is Ethereum with 19.1%.

So, whenever the Bitcoin price decreases, it affects the other coins in the same way and vice versa. I don't think there is another factor that causes this to happen.