How much does Bitcoin affect other cryptocurrency?

[CYBER_COWBOY]

Hello. A newbie is wondering some stuff   

I am follow an account on Instagram that shows how much bitcoin and some other cryptocurrency´s are worth every 24 hours. and something I have noticed is almost every time bitcoin goes up many other also go up.
And when bitcoin goes down many other also go down, of course this don´t apply everyday and all currency´s.

I upload a picture of two days how it shows ( https://imgur.com/YYJRX7F this is two different days and it looks like this)

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.
If they follow each other very often with +/- then the profit/loss should not be a huge difference?

Are cryptocurrency holding each other hand in hand in someway or are they independent. It seems that they share something with each other that I don´t know anything about.

I am far away from an expert on this but I am sure many on this forum is and gladly hear what you guys & girls thinks about it.


Wish you the the best.
Best regards CC!

[Ucy]

Hello. A newbie is wondering some stuff  

I am follow an account on Instagram that shows how much bitcoin and some other cryptocurrency´s are worth every 24 hours. and something I have noticed is almost every time bitcoin goes up many other also go up.
And when bitcoin goes down many other also go down, of course this don´t apply everyday and all currency´s.

...

..  ..

Are cryptocurrency holding each other hand in hand in someway or are they independent. It seems that they share something with each other that I don´t know anything about.

I am far away from an expert on this but I am sure many on this forum is and gladly hear what you guys & girls thinks about it.


Wish you the the best.
Best regards CC!

They are actually attached to the Bitcoin system like parasites are attached to their host. But some are not really that parasitic as they somewhat benefit Bitcoin, but Bitcoin can exist without them.
They are like blood sucking little creatures. You eat, they eat too. You starve they starve.

The solution is to carefully and gently detached the parasites from the host then they starve and die

[Awraawra]

I think bitcoin affects some cryptocurrency because the main market uses bitcoin. So if bitcoin goes down and ups also some crypto currencies follows bitcoin. The impact is always there. So don't worry about it because it's been nature in the crypto world.

[Ojima-ojo]

The reality for altcoins is that, they depend on Bitcoin to make a market change at every point, and since Bitcoin is the driving force for other coins in the market, their price relies significantly on the price of Bitcoin.

But since the volume and circulating supplies of altcoins vs BTC differ it makes the market of the market on various coins differ that iiswhy when bitcoin does a 1x price increase altcoins do an x30-x50 so vis visual.

[posi]

They are not holding hands for survival, but the entire crypto market depends on bitcoin and its movement. In case bitcoin crashes, the crypto industry will disappear, but if many altcoins die or disappear will never affect bitcoin. That is the peculiarity of the cryptocurrency market.
In this market, when you are investing in many different coins will not help you reduce your risk because it all depends on bitcoin. But they can help you increase your profit if you invest in the right coin because their growth rate is not the same.

[joniboini]

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.
If they follow each other very often with +/- then the profit/loss should not be a huge difference?

I don't think you want to 'invest' in USDT, maybe you mean other altcoins that have more volatility like the ETH you mentioned. If you take a look at how the market behaved in the past, I believe you can learn a thing or two about the altcoin movement when Bitcoin is pumping and then went sideways.

As others have mentioned, if you choose a more volatile alts with low supply, for example, you'll get a higher return compared to if you buy BTC. For example, some meme coins only have 1000 supply and it is priced at $1 each, so going from $1 to $10 is giving you a better return compared to BTC going from $40k to $60k if you buy it at $30k. But the risk is probably not worth it most of the time. I'd rather keep buying BTC and just use a disposable income if I want to speculate on some alts. CMIIW.

[avikz]

Please understand that Bitcoin is the pioneer crypto available in the market. Whatever other cryptos you are seeing today, created after bitcoin found its way to success. So it's not a matter of debate whether the altcoins follow bitcoin or not.

Personally I would say the entire altcoin market is heavily dependent of bitcoin. And very closely mimics its trajectory. But there are some obvious exceptions.  Earlier the impact was 100% but now it has reduced to some extent after the introduction of the stablecoins.

[Zaguru12]

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.
If they follow each other very often with +/- then the profit/loss should not be a huge difference?

There is a difference if you’re looking into long term holding or investment. With bitcoin there is a guarantee that you wouldn’t be scared of holding on to coin that could dump from anytime. So the risky of holding to bitcoin is much less than those Alticoins. Alticoins do not have a long term value, we could argue that for ETH and the stablecoins but they also have same issues. Stable coins like USDT could come behind bitcoin for stability but they can also be deppeged just like what was experienced by the USDC coin this year.

The profit level due differs sometimes because some of these Alticoins tend pump to a high level if the team’s handling the project decide to create a FOMO scenario but they don’t last long because some are most tricks to lure people into investing in them and then the whales dump it by taking off there funds. Social media hype or a certain transition just like the ETH moving to POS could create a panic in the market and therefore causes its price to rise beyond bitcoin percentage rise but they all comes back to followin bitcoin.

So there’s a difference, in fact I personally don’t see investing in other Alticoins as a diversification of portfolio since the risk of losing is higher in them than bitcoin. So rather stick to a coin that guarantees you a value anytime

[darkv0rt3x]

Bitcoin couldn't care less about shitcoins. Bitcoin can act on its own and simply follow its way. Shitcoins, usually go for whatever platform they are running on and follow the main project. Or at least in bigger movements, the shitcoins follows. And in turn, these main shitcoins will eventually follow Bitcoin, as it was said, Bitcoin is the pioneer and therefore, it's the drive!

[Victorik]

The whole crypto currency space is built around BTC. More like everything revolves around BTC and as such BTC has a lot of influencing force on other crypto currency.
To put it in the right perspective, if BTC stops existing today, the will mean the end of crypto.

[CryptSafe]

OP, I get where you are heading to. I know you must be wondering why bitcoin stands to be head over other Crypto currencies in the world and why is the other Crypto market dependent on bitcoin.

At first, you should know that bitcoin is the first Crypto currency to be developed and it has no central authority over it. Hence it is a decentralized blockchain.
Bitcoin so far since inception have been termed and tagged a digital gold which no other coin has succeed to have achieved.

The maximum supply of bitcoin gives it a good spot to be in the limelight and for everyone to see.

Lastly,  the demand for bitcoin surpasses every other  coin so far and running into millions on daily basis much better that other Crypto. You could imagine if these people tell their experience on good fate about bitcoin tell me why wouldn't there be a surge in price and holders vice versa as the case maybe. All these contributes to the ups and downs of the bitcoin market which also affects other Crypto market as well.

[KiaKia]

Very very, Any money coming into crypto from whales and institutions are going into Bitcoin first, not until Bitcoin dominance starts decreasing that's when they will start moving funds out of Bitcoin into other alternative coins. Bitcoin is the first and the best and it also has the highest volume, liquidity and etc.  

There are also other factors that makes alternative crypto performs better than Bitcoin, for example insider pumps, FOMO, etc a good one is what happened with PEpE meme coin, that crazily reach over 1 billion market cap in a bearish market.

My first point is talking about price action of bull market, when Bitcoin takes the lead, every other coins follow and when Bitcoin reach it's peak and get tired its left for the coins to do their thing, that's why even shitcoins do well in a bull market.

[glendall]

as we know btc is the first coin and can be said to be the pioneer of all crypto, so btc is a benchmark for an altcoin if it is going to experience a price increase but it does not rule out the increase in altcoins not as fast as btc, sometimes btc undergoes corrections quickly different from altcoins which are always frequent stuck
and if btc stops then all crypto will be memory

[reizella28]

If you think about it, if there's a popular business that people acknowledged it's presence and there's a lot of customer then for sure some business minded would also build an business around the popular one as an alternative choice for people. Which I could say that could be compare to BTC and other cryptocurrency, they are made due to BTC presence it's like the core of the system itself which keeps this industry alive.

[Games.Bitcoin]

Bitcoin is the most well-known and widely used cryptocurrency, and its price movements often have a significant impact on the prices of other cryptocurrencies. This is because many investors and traders use Bitcoin as a benchmark for the overall health of the cryptocurrency market, and also because Bitcoin is often the first point of entry for individuals who are new to cryptocurrencies.

When Bitcoin experiences a significant price increase or decrease, it can cause other cryptocurrencies to follow suit, either because investors are looking to diversify their portfolios or because they believe that the price movements of other cryptocurrencies will mirror those of Bitcoin.

However, it is important to note that not all cryptocurrencies are affected equally by Bitcoin's price movements. Some cryptocurrencies have unique features and use cases that make them less reliant on Bitcoin's performance, while others may be more closely tied to Bitcoin due to similarities in their underlying technology or market positioning.

Ultimately, while Bitcoin does have a significant impact on the broader cryptocurrency market, it is only one of many factors that can affect the prices of cryptocurrencies. Other factors, such as regulatory developments, technological advancements, and market sentiment, can also play a role in determining the performance of individual cryptocurrencies.

[umbara ardian]

We must know that bitcoin was the first successful cryptocurrency, and it laid the foundation for the development and growth of the broader altcoin market. So the fact that altcoins often depend on Bitcoin to change the market means that their prices can be affected by Bitcoin movements. But this is also an opportunity to be able to make more profit for your account because of the potential of altcoins, if you have enough experience, knowledge, and understanding of a certain cryptocurrency.

[Silberman]

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.
If they follow each other very often with +/- then the profit/loss should not be a huge difference?

Are cryptocurrency holding each other hand in hand in someway or are they independent. It seems that they share something with each other that I don´t know anything about.

I am far away from an expert on this but I am sure many on this forum is and gladly hear what you guys & girls thinks about it.


Wish you the the best.
Best regards CC!

USDT is just a stable coin and as such you will not get the same performance as if you invested in bitcoin or ethereum, that being said the performance that you will get out of your bitcoin or ethereum investment should be similar, however while ethereum has reached new ATHs since 2017 its ATH in terms of bitcoin has never been beaten, which means that since then bitcoin has been outperforming ethereum, making bitcoin the best choice not only as an asset but as a way to make money.

[SatoPrincess]

My real question maybe is. If cryptocurrency´s follow each other. whats the difference if you invest in BTC or ETH or USDT for example. If you invest in all three $1000 each.
How will it look at each invest after example 12 months? I understand its impossible to predict something like this, but some guideline.

The value of altcoins is highly correlated with the increase/decrease of Bitcoin. USDT is a stable coin and the price is supposedly pegged to the US dollar so even if there is an increase or decrease in bitcoin price, it doesn’t affect the value of USDT. As for your other question, if at the end of the 12 month duration, the price of bitcoin is high then the price of eth as well as other altcoins will also rise, even more exponentially than bitcoin, and vice versa.

[CYBER_COWBOY]

Thanks for all great replies. I will check them all! 

[KingsDen]

Thanks for all great replies. I will check them all! 

Bitcoin is the king and when the king sneezes, everyone shivers. When bitcoin is in the bear lane, other coins (altcoins) follow and vice versa.
That is why myself and many other people do not believe in diversification in cryptocurrency. You cannot hold bitcoin and want to diversify in altcoins. It is the same risk and even worse risk.
If you invest in bitcoin or altcoin then diversify to gold, Real Estate etc.

Again, Op I do not think you want to invest in a stable altcoin (USDT). It will not give you RoI.