How can all (or most) cryptocurrencies rise and fall at the same time?

[Mark301]

The price and, ultimately, the charts on any given exchange are determined by the price of the most recent transaction. How can the prices of 100s of cryptos all move in the same direction at the same time?

[mk4]

Mostly because bitcoin (BTC) still acts as sort of the "index" of the cryptocurrency space (just like the SPY with stocks), and that BTC trading pairs have the most trading volume and market liquidity.

Like it or not this is not going to change any time soon. BTC is still the non-stablecoin coin that has the least risk, hence why it's mostly down less compared to other alts when in bear markets.

Because of exchange bot trader. The bot determines if the sentiment of the market and reduce the order that they set in accordance to the sentiment. That’s why most of coins move on the same direction except for those token that has an active trading activities against the trend like when the project has big announcements or exchange listing which gives the sentiment signal to the bot.

Market makers on exchange is made bot and only few of them is from traders.

Sorry but, wtf is this??

[_act_]

How can the prices of 100s of cryptos all move in the same direction at the same time?

Because traders more buy at the same time irrespective of the coin, because traders sell at the same time irrespective of the coin also.

For holding, after bitcoin halving, people fomo and holders buy more during the periods and sell more during the bear time periods.

The price is mostly controlled by bitcoin price, do not get me wrong, I mean when people are buying bitcoin, they are buying altcoins too, when they are selling bitcoin, they are selling altcoins too. That is crypto market and that is the reason.

Mostly because bitcoin (BTC) still acts as sort of the "index" of the cryptocurrency space (just like the SPY with stocks), and that BTC trading pairs have the most trading volume and market liquidity.

This is how it will always be, that is how cryptocurrencies are, following the same trends, but percentage rise or fall always differs.

[tranthidung]

Many conditions to trigger the market moving upward or downward

• Crypto market is only a component of a bigger thing, a whole globalized world with more markets (stock, real estate, energy, etc.) that can be affected by politics, geo-political conflict, crisis, energy crisis, war, etc.
• If a whole world is in trouble from pandemic, war, recession, crypto market will be affected in particular
• Inside crypto market, Bitcoin is a leader of the trend. If Bitcoin has a bull run, a crypto market will follow it and vice versa.
• There are always exceptions that barely move oppositely with a general trend like in past few weeks we are witnessing pumps of low-cap, shit coins.

[passwordnow]

The price and, ultimately, the charts on any given exchange are determined by the price of the most recent transaction. How can the prices of 100s of cryptos all move in the same direction at the same time?

The simple term is pairs or pairing in trades.
Just like what we see in the foreign exchanges, many of them have the USD in the majority and the same goes for most countries' economies. If USD moves higher this time, you see that other countries' exchange rate for their USD is also increasing but their local currency is getting weaker.
The same goes for the crypto, the bitcoin, and the altcoin market. Most of the time it is correlated but there are times that it is indirectly related. The majority of the exchanges have the pair for bitcoin and Ethereum and that's why they're moving altogether.

[Kelvinid]

How can the prices of 100s of cryptos all move in the same direction at the same time?

Don't bother yourself to imagine that as it was impossible. Have in mind that nobody has ever taken control of the market which is why you can't and never say they all go in the same direction at the same time. If that will happens, we are going to say that the market lies on one hand, in fact, traders and whales could somehow affect the market trend and change its direction.

I would agree to have the same direction and that is because of the influence of Bitcoin on the market, however, this will never connect to see them it drops at the same - that kinda be a big coincidence.

[jackg]

It depends on the pair liquidity with btc and fiat. If the liquidity is higher against btc the coin/token has a chance to follow it better (arbitrage bots are likely to trade these to keep the prices close if it's profitible to do so - exchanges may do arbitrage themselves too but it's unlikely).

This also probably stays true for eth too as lots of people that buy bitcoin might buy eth so if the bitcoin market starts to drop then the eth market can follow just because people have invested in both and sold both at close enough intervals.

[Adbitco]

We can call it bot manipulation, and also solely depending on Bitcoin movement that is why most of currencies you see goes up when bitcoin goes up and as well drops when it goes down btw it could be called market factor at same time their prices are always the same in all the exchanges but could be varies by $1 or $5 differences between exchange A and B or D.

[Eternad]

Sorry but, wtf is this??

You already mention BTC as Index but you didn’t knew who works for that?

Binance and other exchange has this kind of bot that automatically adjust the price on the orderbook that market maker set except those setup by individual ofc. These market makers provides most of the liquidity on CEX and it's not all from retail traders that's why you can see that order books price keeps updating every seconds.

This is same with altcoin sentiment, The orderbook adjust based on the current sentiment which creates a fake volume of buying and selling when there's a trend. Just like what you explain, BTC serves as an Index while market maker use that as reference for the movement.

[Silberman]

The price and, ultimately, the charts on any given exchange are determined by the price of the most recent transaction. How can the prices of 100s of cryptos all move in the same direction at the same time?

It  is nowhere near as odd as it may seem, sometimes when a big and influential company releases their report and it is bad this can be more than enough for the stock market to have a bad day, now imagine if that the company behind such stock was so powerful that it was roughly half of the whole stock market, it had massive credibility and the rest of the companies were always trying to copy everything it does, do not you think the stock market will move according to the movements of that single company? And the answer is yes, which explains why most coins move in the same direction bitcoin moves most of the time.

[KingsDen]

There are many factors that could cause it, but the most important of them all is being able to recognise that bitcoin is the driver of the market.
Some people involve in alts to raise money to buy btc and that's why small thing the alts will crash and when they start investing in btc, btc will start rising and another run into alts believe btc will drive it again...lol

Just demand and supply and they have one driver which is btc

[CryptopreneurBrainboss]

The market is built on manipulations. The whale and VCs has control over the market then many of us actually think they do. They decide when the market pumps or dump due to the large funds available to them and their stakes in the large exchanges that dominate the volume in the exchange business. There has been a theory that this Whales, VCs etc has a hand in every coins that get to be ranked high in the industry as such profit massively and if you dig deeper, the evidence are there.

That been said, the industry is heavily correlation and moves in similar directions. Bitcoin is the standard unit of measurement in the industry as whatever direction it goes altcoins naturally follow, altcoins are heavily been paired with Bitcoin for trading and Bitcoin currently controls over 40% dominance of the market. That means the Whales, exchanges just have to paint a scenario then the whole market follows, exchanges also has the bots trades helping them in painting this scenario of market been bought up or sell pressure incoming which trigger days traders to make similar trades and puts  the whole market in one direction.

[Rengga Jati]

Commonly, it is because altcoins are following the Bitcoin market itself. We know how dominant Bitcoin price is right but in the crypto market.
The sentimental of the Altcoin price that is following Bitcoin always become also the main reasons why the altcoins are dropped enough.
Additionally, when Bitcoin is dropping, most people also panic enough and then sell out their tokens or coins. That is why the price also keeps

[adaseb]

This is no different than stocks. Generally there are days when every single stock is up or every single stock is down. That is the most common. Sometimes there are choppy days with little change and some stocks are green and some are red.

The point is that most traders follow the same trend. If everybody is dumping crypto, then most cryptos will dump. Alts usually dump more than BTC or ETH. You want to look at ratio pairs with /BTC pairs if you want to see strength relative to Bitcoin and not fiat.

[el kaka22]

The logic is that when money leaves crypto it leaves crypto as a whole, when crypto gets a lot of money it gets it all together. Plus most coins are tied to bitcoin pairs, which means that when bitcoin goes up, and the pair stays the same, then the price of it stays the same. Think about it this way, if one bitcoin is 20k dollars, and there is a pair like btc-xyz and that xyz equals to one bitcoin, then one xyz is also 20k dollars as well.

When one bitcoin becomes 50k but xyz is still one bitcoin, then xyz will become 50k as well. This is how the market goes up and down all together, the altcoins that are tied to bitcoin will go up and down when bitcoin price goes up and down.

[logfiles]

You probably weren't there when stablecoins were not yet popular, the base asset for most trading pairs was mostly Bitcoin and then Ether later.
And even today those pairs and present in almost all exchanges.

Bitcoin having a big dominance in the market, anything that happens to its price means all the other assets prices will also react accordingly.

[jrrsparkles]

The price and, ultimately, the charts on any given exchange are determined by the price of the most recent transaction. How can the prices of 100s of cryptos all move in the same direction at the same time?

Its simply because of panic selling, when a trader see red on the chart he will try to pull out which initiates the chain reaction so everyone follows and also happens to all the coins at the same time so basically emotions playing a big role with the price drop as well as for the rise.

[Wexnident]

They follow a general trend and Bitcoin stands as the one that pretty much they follow since it's still the top coin to choose (and would probably stay as one). Besides, the general sentiment on one part of the market would usually influence the other parts, so Bitcoin being down also inevitably brings up a negative sentiment (for the most part) in the altcoin department. Not to say that altcoins don't have their own market, the pumps and dumps still vary from coin to coin but most of the time it's infested with whales manipulating the amount a market would dump or pump.

[ChrisPop]

You could ask the same question in regards to stocks or even Forex pairs. There is certainly a probability factor involved, but it depends on what market environment you're in. If in a bull market traders/investors will generally have a more generous "hand" in handling investments. They are more greedy and feel more confident in themselves.

Here is an example of a trader's thinking In a bull market: "Hey, my coin surged 10%, but there are multiple coins in top 50 market cap that didn't but look like they are ready to go, so why not take some profit here and buy some of those."

[Mauser]

The price and, ultimately, the charts on any given exchange are determined by the price of the most recent transaction. How can the prices of 100s of cryptos all move in the same direction at the same time?

This is what you call market risk in the crypto market and it determines most of the prices changes. It doesn't really matter which exchange you look at because they are all connected, there can't be two different prices for one crypto coin on different exchanges. If that was the case traders could just buy the coin on one exchange and sell it on other to make a free profit. The market risk is also what makes most stock prices move. Stocks are highly correlated to each other, like crypto currencies. If blue chip stocks drop, so will also the small cap companies. In the crypto world we can see that when the bitcoin is falling then all the alt coins are also falling.