Why does Bitcoin seem to have a high influence over other cryptocurrencies?

[GreatArkansas]

Over the years, I have noticed  that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, it’s expected that  altcoins  go up in price shortly after.
(....)

One of the reasons why I am avoiding a lot of altcoins these days, the percentage when the market recovers are really far from Bitcoin. I also believe that this is the power of having a high market capitalization.
If you compare to other altcoins, the percentage of dumps when whole market is dumping is very huge to altcoins and when market recovers, other altcoins pump is not too huge compared to Bitcoin.

[bitzizzix]

Altcoins are completely dependent on bitcoin, which is the undisputed leader in all crypto markets.
bitcoin is the most widely used and most popular and also has the largest capitulation, and when the price of bitcoin falls, altcoins fall even more.
so diversification in the cryptocurrency world is a big illusion, and the sooner you understand this, the better for you, because you will be able to fully invest in real signals, the bitcoin revolution and the rest is just noise.

[Ucy]

One of the main reasons: Many humans & possibly bots are contributing energy to power them up. It's quite similar to why certain coin developers choose certain names that will be more commonly mentioned in the future by many people. For example "Hurricane Coin" because of possible increase in hurricane in the future due to increase in extreme weather conditions. As the names related to Bitcoin/crypto are mentioned, coins tethered/connected to Bitcoin with similar names are equally powered up.

You can easily move the price of Cryptocurrencies if you're intelligent enough to combine certain persuasive words with the  terms that link crypto together. I doubt anyone can do this presently as people have become too weak and dumb to succeed.

[kryptqnick]

Bitcoin doesn't have a totally systematic and direct effect on the market of altcoins, and if one is attentive enough, one can see major differences. Apart from there being many altcoins doing their own, so to speak, and rising or falling regardless of the market situation, there are also major differences with the top coins. For example, even at a current adjusted growth over the last 7 weeks (it was higher a couple of days ago), BTC grew by 11.4%, whereas Ethereum grew by 31.4%. They both grew, sure, but the difference is immense. There was also a notable difference in early 2018, when Bitcoin was already falling fast from its ATH, while Ethereum reached its own in the middle of January and got pretty close to it at the end of January again. Bitcoin, as that time, had already lost almost half of its ATH value.
But overall there's a strong correlation between Bitcoin and top altcoins because they are often traded in pairs, because Bitcoin is #1 by marketcap, and because this marketcap is a very big share of the total market.

[fiulpro]

- We can say that bitcoins is unique but we can't say that other Altcoins are since they are made over the concept of Bitcoins making them variable yet same.
- Bitcoins was the first crypto ever, Altcoins comes and goes but it's Been stron since 2009
- Most trading pairs are pegged against bitcoins therefore the effect is synergistic if one falls the other does too
- It has high amount of profit
- Amazing crypto for trading
- Most people here as well are paid in Bitcoins, the amount of dominance in the market is excellent for bitcoins

[romero121]

It is the one that gave way to the emergence of the term altcoins. If bitcoin haven't come into existence, there could've never been any altcoins. There is a need for a platform that has the ability to eliminate the third party involvement.

Satoshi tossed it through the innovative blockchain technology. Through this Bitcoin blockchain got developed and started to stay dominant in the market. Following bitcoin we started to see the development of more number of altcoins. This is the reason why bitcoin have got high influence over other cryptocurrencies.

[uneng]

Let's say bitcoin is the main representant of cryptocurrency sector, but not the only member of this sector. So, when people develop interest for bitcoin, it's normal the whole sector is affected positive as well indirectly, and that is when we see the impact and influence of bitcoin over other cryptocurrencies.

It's like a very popular shop localization. People go to the area for that shop in special, but every other businesses around will be benefited as well by that popularity, since people will cross by them and consequently some bucks will drop on their pockets too, although they aren't the main reason why people are there. Somehow it's what happens with altcoins.

[CryptoHeadlineNews]

One reason why other coins follow suit in the fall in price with Bitcoin is that Bitcoin is an important trading pairs to all coins on exchanges, and whatever affect it's price, it is likely to affect others, since it is the coin with the most market cap and mother coin to which others now exist

[NotATether]

Over the years, I have noticed  that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, its expected that  altcoins  go up in price shortly after. Presently as bitcoin price reduced other altcoin prices was affected too. Fact is that Bitcoin has the most secured network and it was the first among others. No doubt some alt coins was made of bitcoins clone.

It is primarily because of the traders rather than the hodlers.

They group all cryptocurrencies in one category, thus when one big cryptocurrency makes very high gains (e.g. BTC), they buy up the other big cryptocurrencies, and it has a kind of knock-on effect on the market.

[Docnaster]

But being  that a product can be the first of its kind to be made (just like Bitcoin)  and other companies may decide to produce similar product;( just like alts)  but that doesn’t mean the original product price and value will always affect others. So why does Bitcoin have such a big influence on other alternative cryptocurrencies.

Going by your example of a product and it's alternative. It does not hold same for bitcoin. But I will try yo use the product name to explain to you why bitcoin leads and others follow.
Let us use  Coca-Cola company as example. Let us say that the Coca-Cola company is the cryptocurrency, coke is bitcoin while other Coca-Cola products are altcoin.  If coke is banned, the Coca-Cola company sales will drop drastically even if other drinks are available. Coke is the mother and face of Coca-Cola, but if coke is banned, it will not affect the peak milk company because they are not related.

Bitcoin is the mother and father of cryptocurrency, if the parents didn't provide food, both the parents and the children will starve.

[justdimin]

Over the years, I have noticed  that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, its expected that  altcoins  go up in price shortly after. Presently as bitcoin price reduced other altcoin prices was affected too. Fact is that Bitcoin has the most secured network and it was the first among others. No doubt some alt coins was made of bitcoins clone.

It is primarily because of the traders rather than the hodlers.

They group all cryptocurrencies in one category, thus when one big cryptocurrency makes very high gains (e.g. BTC), they buy up the other big cryptocurrencies, and it has a kind of knock-on effect on the market.

That type of thing happens in all of the cryptos and all of the markets. If there is a good case to be made about the current situation we are in, that's what we are doing right now with the investments we do together just like the hedge funds does it in the stock market.

I get that it may not be something some people like and could call it a manipulation but at the end of the day we couldn't be really saying it's a bad thing considering how it has been a situation in the stock market before as well and why we wouldn't be really caring about it there, so we shouldn't care about it here neither. This is of course my personal opinion, maybe I am wrong but it feels like that would be the greatest idea to do right now, to let it go.

[freedomgo]

Over the years, I have noticed  that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, it’s expected that  altcoins  go up in price shortly after. Presently as bitcoin price reduced other altcoin prices was affected too. Fact is that Bitcoin has the most secured network and it was the first among others. No doubt some alt coins was made of bitcoins clone.
 But being  that a product can be the first of its kind to be made (just like Bitcoin)  and other companies may decide to produce similar product;( just like alts)  but that doesn’t mean the original product price and value will always affect others. So why does Bitcoin have such a big influence on other alternative cryptocurrencies.

Bitcoin is the blood in the crypto market. It’s the only coin that drives the whole crypto market and that all altcoins after bitcoin are built from the image of bitcoin. Not surprising why many of the new projects these days attempt to be as useful as bitcoin. But that is not happening right now. Instead of having a healthy competition in the market, most altcoins nowadays have been developed from greed and selfishness, the reason why they are not focused on their utility case and long term profitability. In the end, only bitcoin survives and meet the most demand in the crypto market.

[minairia3]

In fact, all altcoins are basically built on the ideas of bitcoin and it can be said that the cryptocurrency market would not exist without Bitcoin. Looking at the market, you can easily see that the value of bitcoin is dominating the market, accounting for almost 50% of the market capitalization, so it is not surprising that bitcoin is dominating the rest of the market.

In addition, currently bitcoin is the most widely used and accepted cryptocurrency, with the highest demand so there is no doubt about its position in the market.

[KennyR]

Just think of a leader. He can be the leader of a community or country or to a group of people. Whatever it might be, we can experience the influence of the leader over those people. Why he is a leader, because he have got special qualities and characteristics that the followers doesn't have. This is where a leader differ from the follower. The same is with bitcoin, it have got its uniqueness and the influence is found over the altcoins.

[Newlifebtc]

One reason why other coins follow suit in the fall in price with Bitcoin is that Bitcoin is an important trading pairs to all coins on exchanges, and whatever affect it's price, it is likely to affect others, since it is the coin with the most market cap and mother coin to which others now exist

Bitcoin is the father of all the coins I believe that with the  level of cryptocurrency no body will like to suspend it investment with any other cryptocurrency. Bitcoin is the coins that have value and the coins that is regarded is the coins people value to invest with because bthe life is still active to go

[Fundamentals Of]

Why even ask? It is expected. It is common sense that Bitcoin, being the first and probably the one and only decentralized cryptocurrency in the whole wide crypto market should be the one having the strongest influence over all copies and fakes and scams. There's nothing surprising about it. On the contrary it would be a complete surprise if any of the altcoins would have a strong influence on Bitcoin. That would be a world made upside down.

[peter0425]

do we really need to answer this?

Bitcoin as the Pioneer crypto currency ? not mentioning how much investments are inside and how support this gather over the years?

if those answers aren't enough then this is not answerable at all.

Bitcoin will always be the most influential currency and most safer and most trusted currencies in the world.

[Nrcewker]

Over the years, I have noticed  that every time Bitcoin's price goes down other alt coins follow suite. And When the price of bitcoin increases, it’s expected that  altcoins  go up in price shortly after. Presently as bitcoin price reduced other altcoin prices was affected too. Fact is that Bitcoin has the most secured network and it was the first among others. No doubt some alt coins was made of bitcoins clone.
 But being  that a product can be the first of its kind to be made (just like Bitcoin)  and other companies may decide to produce similar product;( just like alts)  but that doesn’t mean the original product price and value will always affect others. So why does Bitcoin have such a big influence on other alternative cryptocurrencies.

The reason for Bitcoins becoming so popular is obvious. I mean any one who at first heard about Cryptos is only due to Bitcoins. From this you can measure the popularity of the coin comparing to other alts.
Also most of the alts follows Bitcoins in regards to its price is due to the trading pairs. Bitcoins are vastly used in many exchanges as a trading pair with other cryptos. So whenever there is price fall or rise in Bitcoins, it also followed by the other alts.
In other words many person do transaction on alts for Bitcoins only, so the similar pattern is seen.

[yazher]

Simply because it has some successful history and some kind of anonymity that other coins don't have and also the feature that every coin doesn't have which is its creator is no longer controlling or developing bitcoins features rather the creator of bitcoins lets everyone do their own contribution on how they will use bitcoins like for example using it as a personal asset that no one can touch except its rightful owner and makes it as a mean of payment and others.

[kotajikikox]

Just think of a leader. He can be the leader of a community or country or to a group of people. Whatever it might be, we can experience the influence of the leader over those people. Why he is a leader, because he have got special qualities and characteristics that the followers doesn't have. This is where a leader differ from the follower. The same is with bitcoin, it have got its uniqueness and the influence is found over the altcoins.

Well leader is leading because of its value and that is what bitcoin has and some altcoin dont have, though even the following altcoins are just a tip of an ice berg comparing to bitcoin and this is far different from the size of the support for this number one ranking cryptocurrency.

Simply because it has some successful history and some kind of anonymity that other coins don't have and also the feature that every coin doesn't have which is its creator is no longer controlling or developing bitcoins features rather the creator of bitcoins lets everyone do their own contribution on how they will use bitcoins like for example using it as a personal asset that no one can touch except its rightful owner and makes it as a mean of payment and others.

and because this is the pioneer in which indicates how strong the support is and how many people trusting this with their money.