Why do most cryptocurrencies rise and fall together?

[Alert31]

 In crypto, it has  a game "Follow the Leader" in which bitcoin is the leader while altcoins is the member.The rise and fall of bitcoin is depends on bitcoin and demand. If bitcoins value going down, altcoins always follow that makes the weak hands of the seller and holder to panic sell what they hold because of fear. But if people/investors see that the value is increasing , they are chasing to buy that makes the value of a coin increasing more.

[uneng]

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?

I believe both alternatives are right. There are whales who operate in multiple exchanges, dealing with multiple crypto currencies and there are also many smaller investors who follow these whales' movements. Then we have the trends, hypes, bull runs which push different assets of crypto market upside, always led by bitcoin on the front. That is a clear signal of how speculative crypto market is.

[jakdanyel]

Most cryptocurrencies rise and fall together because they are actually dependent on Bitcoin. If Bitcoin price starts increasing then we see the market being all green. If the opposite happens, then the market in general is also affected in the same way. It's about Bitcoin's being the most dominant cryptocurrency in the market. For example, if the number one cryptocurrency was Ethereum, then the others were going to be dependent on it.

[sapnu]

Ever since the rise of many potential altcoins, it can be observed how they follow bitcoin's price movement wherein whenever it experiences a sudden rise in value, the altcoins also rise together with it. It can also be seen evident that the multiple number exchanges which involves different cryptocurrencies affects the unified rise and fall of it. Bitcoin has always been the trendsetter and it is no surprise that many are still investing on it as well as believing on its capability to rise more in the future. That is why most of the investors diversify their investment because they know most of it will follow bitcoin's bull run whenever it happens.

[Victorycoin]

The reason most cryptocurrencies grow together is because they have a much higher level of investment in the market amount of investment in bitcoin in the crypto market is always high as the price of bitcoin rises so does the value of all these altcoins. Currencies all continue to rise depending on the price of bitcoin despite the rise and fall of the market, investors are holding on to the currencies depending on the price of bitcoin. With the decline in bitcoin prices a few days ago, the demand for other altcoins has declined but is now rising again.

[jaberwock]

Ever since the rise of many potential altcoins, it can be observed how they follow bitcoin's price movement wherein whenever it experiences a sudden rise in value, the altcoins also rise together with it. It can also be seen evident that the multiple number exchanges which involves different cryptocurrencies affects the unified rise and fall of it. Bitcoin has always been the trendsetter and it is no surprise that many are still investing on it as well as believing on its capability to rise more in the future. That is why most of the investors diversify their investment because they know most of it will follow bitcoin's bull run whenever it happens.

This is basically most of the time, but it is not at all times, we are talking about something that usually goes hand in hand but sometimes it doesn't do that. When? When there is an altcoin season you get to see that we have bitcoin staying still while all other coins going up, and that is the difference between an altseason, and a bull season. In a bull season you have bitcoin and all the other coins going up.

The greatest example for this is the period when bitcoin went from 10k to 60k, for example eth moved from 100-150 dollars to 3k dollars at the same time, which means it was a bull season because they all went together, this happened in 2020-2021 period so it is fairly recent and I hope everyone remembers it.

However what happened afterwards? Bitcoin stayed between 50k to 60k prices and didn't move up, meanwhile ethereum went from 3.2k levels to 4k+ levels, bnb moved from 300-400 dollars to nearly 700 dollar levels. That one was altcoin season and happened around in late April and May, which was the proof that the end was near, because after the alt season usually prices start to drop.

[Wakate]

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?

I believe the cryptocurrency market is being affect by the movement of Bitcoin which make every other altcoins to follow it trend. When the price of Bitcoin fall, it will also affect other cryptocurrency coin making them to fall too and when the price goes up every other coins will be affected too.

Since every other coins are built on Bitcoin interface and origin, every crypto coins must concur to it moves. Just like the recent Bitcoin fall from $60k+ to $30k+ making many crypto traders to lost their Trading funds also affect other coins to fall too even though there fall was not as severe as Bitcoin.

[bryant.coleman]

Yes, that's the condition in the stock market. It's like btc is the spearhead of everything, when btc goes up they traders are optimistic that other coins will go up too .. vice versa if btc goes down altcoins are much lower than expected.

It is a very perplexing phenomenon. When a bull rally occurs, usually the altcoins go up even more when compared to Bitcoin. As a result, the exchange rates go up, but the Bitcoin dominance will go down. The exact opposite is the case during bearish phases. The price goes down, but the Bitcoin dominance rises because the altcoin exchange rates go down even more when compared to BTC. The best example is the bearish phase of 2018, when some of the altcoins went down by as much as 98% or 99%.

[Alfreed]

the price of a cryptocurrency reacts sharply to the demand for it. high volatility is present in all cryptocurrencies, since they are not backed by anything, like a currency. when something happens in the cryptocurrency market that affects their rise or fall, as a rule, it has a steam locomotive effect. demand falls or rises not only for one cryptocurrency, there is a change in prices for other cryptocurrencies. people are starting to sell or buy not only bitcoin but other alternative coins as well. so the price changes

[awik p]

Yes, that's the condition in the stock market. It's like btc is the spearhead of everything, when btc goes up they traders are optimistic that other coins will go up too .. vice versa if btc goes down altcoins are much lower than expected.

It is a very perplexing phenomenon. When a bull rally occurs, usually the altcoins go up even more when compared to Bitcoin. As a result, the exchange rates go up, but the Bitcoin dominance will go down. The exact opposite is the case during bearish phases. The price goes down, but the Bitcoin dominance rises because the altcoin exchange rates go down even more when compared to BTC. The best example is the bearish phase of 2018, when some of the altcoins went down by as much as 98% or 99%.

when the phase goes down, the altcoins fall deeper and the dominance of bitcoin will rise, this is because investors are looking for a safe place to invest, namely in bitcoin, so bitcoin capitalization looks very dominant at that time. and this will split after bitcoin has increased and is followed by altcoins which will rise higher than bitcoin, because it is felt that there will be many potential altcoins with lower prices, in this case it seems as if bitcoin cannot be separated from the holder of control in cryptocurrency

[int03h]

Cryptocurrencies rise and fall together for various reasons, and they follow the laws of the BTC.D domain and the volatility of Bitcoin. Besides, some crypto projects have escaped that movement and gone their own way. For example bad news and good news. Some altcoins diverge and move in a bullish direction due to user demand. Most recently recorded AXS increased about 20 times in two months.

[Ozero]

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.

In order to influence the price of another cryptocurrency, the level of capitalization of the coin, that is, the volume of investments that are invested in this coin, is of decisive importance. The volume of investment has a direct impact on the level of price dominance in the cryptocurrency market, which is determined as a percentage of the capitalization of this coin to the capitalization of the entire market. Bitcoin has always had the highest level of price dominance, now it is 41.2 percent. This gives him the opportunity to influence the prices of almost all cryptocurrencies. The second place in terms of price dominance is taken by ethereum with 18.7 percent. Any cryptocurrency with the highest percentage of price dominance will exert price pressure on all other cryptocurrencies.

[dbc23]

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 coin are built on the leading smart chain network and core and this also affect the price. If the leading coin fluctuates it affects every other coin built on the same network. But what actually affect the price of the leading coin is the demand and supply curve margin. if the demand is high price rise if the supply in turn rises the price falls the law of economics

[LastKiss]

Cryptocurrencies rise and fall together for various reasons, and they follow the laws of the BTC.D domain and the volatility of Bitcoin. Besides, some crypto projects have escaped that movement and gone their own way. For example bad news and good news. Some altcoins diverge and move in a bullish direction due to user demand. Most recently recorded AXS increased about 20 times in two months.

I agree when some crypto coins move steadily they will follow their king (Bitcoin) movement but it depends on what news they have. But from what I see when they got good news many coins won't steady at their high gains but they will fall to near normal price because many people take profits from it. Don't fall into the trap when a coin increased about 10+ times in a short time.

[darewaller]

Crypto is a market as a whole, and even though there are individual movements time to time, the general direction of a market is usually the same. Silver and Gold move up and down together as well, or stocks move up and down together as well. Don't get me wrong, there are situations where one individual goes up while other goes down, but that happens in crypto as well. So, when you are talking about a market, usually pieces of that market go up and down together.

This is why I believe that there won't be any problems when the market keeps moving up and down together in the future as well. This is how it is everywhere else and this is how it will be for crypto as well.

[RealMalatesta]

Crypto is a market as a whole, and even though there are individual movements time to time, the general direction of a market is usually the same. Silver and Gold move up and down together as well, or stocks move up and down together as well. Don't get me wrong, there are situations where one individual goes up while other goes down, but that happens in crypto as well. So, when you are talking about a market, usually pieces of that market go up and down together.

This is why I believe that there won't be any problems when the market keeps moving up and down together in the future as well. This is how it is everywhere else and this is how it will be for crypto as well.

It is not for crypto though, we have seen reverse movements before and that is why people are a bit confused about it. I am not saying that this is what will happen but at the same time I am not saying that it is impossible neither.

Remember that there have been plenty of times when bitcoin went up and altcoins went down as well and that is why we all know that it is possible, and meanwhile we have seen some few coins to go up like you said individually, so that looked like 5-10 coins went up along with bitcoin while plenty of them went lower. This is why people are a bit surprised to see that there are situations where the whole market goes up and down together.

[boyptc]

We know that bitcoin is the first and king in the crypto-currencies. So, if bitcoin price is fall down, almost all of the coins are going down. On the other hand, if bitcoin price is increasing, then all crypto-currency is increasing. But coins are stable or not follow the btc.

And it's all due to the pairs of btc with most of the altcoins in the market. Although there are dexes but many of them still falls into bitcoin eventually.

People should just accept the fact that bitcoin is the big market mover.

That whenever it drops, your alts are also going to melt the way bitcoin is being melt. But if the opposite happens, then it's the positive thing on why bitcoin is a good asset to hold among them all.

[Flexystar]

I think there are a few things at play here:
1. Investors in bitcoin that are likely to panic sell/sell at a certain point are also likely to hold other coins they'll sell.
2. Most exchanges have a pair type for coin/usd and coin/most likely conversion (at least). Any spreads (gaps in the order book) are likely to not stay empty for long - but some do. Also some exchanges might be set up to arbitrage each other (especially if this can be done manually by someone managing some of the exchange's funds).

I don’t think that bitcoin holders might be the holder of altcoins too and thus they are the one whose selling or buying them so that everything goes up and down in harmony. It’s more or less chain reaction kinda scenario where bitcoin makes the other market to go numb and think they are in the risk of holding it. So it’s better to sell off the crypto for stable coins or fiat to secure the profits. The relation is however more complex than we think. Perhaps there are also so many liquidity and staking pools which also hold back the resistance. It’s truly more than one thing.

[Ararbermas]

We know that bitcoin is the first and king in the crypto-currencies. So, if bitcoin price is fall down, almost all of the coins are going down. On the other hand, if bitcoin price is increasing, then all crypto-currency is increasing. But coins are stable or not follow the btc.

Sorry i don't know what you're talking about on the last part. But yeah because bitcoin has the largest market cap in the market reason most coin tends increasing value as well when it goes up.

But not all the time bitcoin can influence all coin in the market for your information, because you know there some big traders /investor that used to dump to another coin in order for them to make profits despite of the situation of the market wherein reason when bitcoin is going down there are some alts that tends to increasing..

[Mamun74]

Bitcoin is king of all coin and most popular coin in cryptocurrency. Bitcoin and most coin between good relationship each other.We know when bitcoin price rise then all coin price going to rise. Now bitcoin price drop and almost coin are going to fall down in price. So i think when bitcoin price will rise again then all coin price will be rise again.