Factors that make Bitcoin determine price of other cryptocurrencies

[Kalam001]

Since I am not very familiar with bitcoin and I fell behind for a spell since I was too busy with school, I am making an effort to absorb what I learned while studying it.

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

[Zaguru12]

Since I am not very familiar with bitcoin and I fell behind for a spell since I was too busy with school, I am making an effort to absorb what I learned while studying it.

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me.  
I need clarification on this, kindly.

First of all this isn’t the board for this discussion, move this to bitcoin discussion board.

The reason you give is actually the most important, as the base of cryptocurrency, bitcoin which is also the largest or biggest cryptocurrency coin base on market cap and adoption rate, many of these Alticoins are tied to it. The most important that after halving period that move up the market is news that surrounds the market and as such if a positive news is released about bitcoin it affects other Alticoins because most of Alticoin investors believes that should bitcoin survive then they have an opportunity to also survive and as such they accumulate these Alticoins as positive news touches bitcoin.

Also also Alticoins on most exchanges are paired with bitcoin and need to purchase it first before they can actually swap them to their preferred Alticoins.

[Faisal2202]

I will try to answer it in short because the list of factors is long like: the first one is everyone in the market has different opinions  and ideology of BTC and ALTs. They think of BTC as the king while the ALTs as Minister. Whenever the price of BTC will increase it means the sentiments of market will change. For example if people have invested in BTC when the price was around $25k then the dominance of BTC will increase which put 6 or 7 different possibilities on the last like if high BTC (d) means lower prices of ALTs, etc.

So, when the BTC . D will be high the last might be lower and when the price of BTC will high holders and traders will try to book profit and dominance might decrease and once it will decrease the price could increase. So the sentiments of market and Profit/loss ratio also depends.

Sometimes, investors are looking for opportunities that could earn them huge profits amid the high risk included so they do for ALTs instead of BTC. Which means BTC was not their first choice due to less volatility and ALTs was their first choice which ill increase the ALTs dominance this te prices of ALTs will increase.

[dimonstration]

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

Almost all alternative currency except stablebcoins is affected whenever Bitcoin is making a move because exchange has pairs all the altcoins to Bitcoin that cause the reaction to the price since exchange has market maker bot to adjust the pirce automatically based on the global market price.

You will notice that there’s some project that moves different among the general trend and that is the excepton since some altcoins has their own fundamentals that might affect the current price trend of speciic coin.

[logfiles]

How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me.  
I need clarification on this, kindly.

The reason is due to Bitcoin dominance in the market, but since you are new, you might not be able to notice it.

Back then, before the emergence of stablecoins. Most centralized and decentralised exchange had Bitcoin as the base asset in a trading pair. Asset prices would be calculated in sats or BTC. If BTC is at 30K and the price of ETH/BTC was 0.01 BTC (300 USD) an increase in Bitcoin price from 30K to 40K means the price of ETH/BTC will now be 400 USD minus it moving even from 0.01 BTC

The same applies if the Bitcoin price drops.

Today, there are many stablecoin trading pairs, but the altcoin-Bitcoin trading pairs still exist and with Bitcooin's dominance, it will affect other coin prices when it moves.

[SeriouslyGiveaway]

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

Look at coinmarketcap.com. Marketcap and trading volume of Bitcoin is very high. Its domination is high too, you can see the Major Cryptoassets By Percentage of Total Market Capitalization (Bitcoin Dominance Chart).

In this world, will people look at biggest economic country, the USA. or small countries like El Salvador when they need to get signals for the global economic growth or recession?

They will look at GDP of the USA. not El Salvador.
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?most_recent_value_desc=true

In cryptocurrency market, when they need to get similar signals, they will look at a biggest cryptocurrency Bitcoin.

[Good_Doctor]

Since I am not very familiar with bitcoin and I fell behind for a spell since I was too busy with school, I am making an effort to absorb what I learned while studying it.

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

Now my bro consider how we look at USDT whenever we check price of Bitcoin... although USDT is a stable coin in a way it almost wants to be determined by Bitcoin, it increase or decrease. Again most of these other crypto currencies are always priced against Bitcoin...what I mean is that they're measured in BTC....just like BTC is the measuring instrument of this other currencies...this is one among many reasons why they tend to fluctuate as Bitcoin price also fluctuates
Summarily, Bitcoin is a measuring instrument of the other cryptocurrencies!

[pooya87]

There are a couple of reasons. For starters people are usually introduced to bitcoin first and then find out about altcoins, or even if it is the other way around (eg. finding out about shittokens like NFTs) they eventually realize that the only viable cryptocurrency that is actually offering utilities is bitcoin so they all eventually end up wanting to own bitcoin.

As people start accumulating bitcoin, some of them will start thinking about ways to increase their "wealth". That means investing the bitcoins they already have and one of the options is by entering the market to start trading bitcoin/fiat or bitcoin/altcoin pairs and to make profit.

This means each time bitcoin price is not making big moves these traders tend to move to altcoin market and trade them more. Which is why we see more pump and dumps in the altcoin market during stable periods (even short ones) and we see altcoins get dumped each time bitcoin starts making a big move up or down. This is because people dump their altcoins to rush back to the bitcoin market.

[komisariatku]

Since I am not very familiar with bitcoin and I fell behind for a spell since I was too busy with school, I am making an effort to absorb what I learned while studying it.

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

In terms of the increase in the price of bitcoin, it seems that it does affect all prices. Yes, it's true if you look at the USD exchange rate. But if it's exchange rate among crypto it can stay the same

Let's try to simulate a bit
1btc = 100 eth
1btc = 1000 usd
1eth = 100 usd

If the price of BTC increases 2x against the dollar
1btc = 100 eth
1btc = 2000 usd
1eth = 200 usd

If you look at the simulation above, the price of btc to eth remains the same. But because the demand for btc is high, the price goes up, so indirectly the price of eth also goes up.

Maybe there is so little explanation, so when the price of bitcoin goes up like crazy and touches ath, then indirectly almost all altcoin prices will also go up, especially altcoins that have btc pairs on the crypto exchange.

[Aanuoluwatofunmi]

How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 

Bitcoin is the king of cryptocurrency because it's the first and most decentralized digital currency where others are copy and paste features of it likes, they will definitely rely on bitcoin to make their move and it's not that possible for them to overthrown bitcoin, bitcoin already set the pace while others follows, bitcoin is a proof of work while others are proof of stake, bitcoin is here to stay while some other cryptocurrencies are nothing but a short time project, bitcoin will always determines the other conditions for the crypto market always because everything started with bitcoin before altcoins joins gradually.

[Fivestar4everMVP]

Since I am not very familiar with bitcoin and I fell behind for a spell since I was too busy with school, I am making an effort to absorb what I learned while studying it.

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

This is basically due to market dominance, bitcoin for some time now has been dominating the entire crypto market.

Market dominance is simply calculated by the entire market capitalization of a coin, bitcoin has had and still have the highest market cap in crypto, and as such it's market dominance is pretty high, it's currently around 49.9 percent, this means that in the entire market cap of the whole crypto market, bitcoin alone has 49.9 percent, with a dominance that high, it's very easy for other coins to depend or kind of depend on the price of bitcoin for the to determine their own prices..

We wil begin to see a difference, where every coin could solely determine it's own price when the market dominance of bitcoin comes down to atleast, 25 percent or lower.

[hugeblack]

Not all cryptocurrencies are directly affected by the price of Bitcoin, but rather those altcoins that have a significant market value, and the reason for this is the effect of the market value of Bitcoin on them.

 - pump and dump coins whose price is stable for a long time and suddenly the price increases.
 - Stablecoins are pegged to one dollar, and the peg is rarely broken.
 - Fundamental events and changes in the currency, such as a hack, burning, updating or anything changing.

These factors make some altcoins differ in price from Bitcoin.

[bussybuddy]

At first we hear more about bitcoin then other altcoins in the market, be it self research or just fomo behavior according to someone's information, like a tree I see btc as the root and altcoins as branches and leaves. So the root must be healthy, the new branches and leaves can grow, the money flow is like water and nutrients to absorb into that tree, when we look at the fluctuations of the market we always see the beginning of the growth bitcoin before altcoins can follow suit.

[rby]

These factors make some altcoins differ in price from Bitcoin.

Also some investors purposely pulls out of bitcoin to buy altcoins. Especially when bitcoin bull market is not at sight. However it won't be difficult if they have to switch again back to bitcoin when there is a sight of bull run.
Op, bitcoin moves the cryptocurrency market because only the market cap of bitcoin is bigger than the market cap of all the altcoins put together.

[Blitzboy]

The largest of all cryptocurrencies, think of Bitcoin as the big brother. The innovator, the king of the hill, if you will, is the one who started it all. Its younger brothers, the altcoins, take after Bitcoin in terms of behaviour. Since they hold Bitcoin in high regard, when Bitcoin succeeds, they take inspiration from it and do likewise. They sense the pessimism when Bitcoin declines and follow that path as well.

What causes Bitcoin to fluctuate, then? Supply and demand is an elementary economics principle. 21 million Bitcoins are the maximum number that can ever exist. The supply component is that. However, demand increases as more people become aware of Bitcoin and desire to own some of it. Also, prices rise as demand outpaces supply. Value decreases when there is a decrease in demand or when fear sets in.

So thats a brief summary of the link between Bitcoin and altcoins as well as the impact of supply and demand on Bitcoin's price. There are ups and downs, but its always enjoyable to watch a reality TV show!

[tabas]

Since I am not very familiar with bitcoin and I fell behind for a spell since I was too busy with school, I am making an effort to absorb what I learned while studying it.

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

The pair on most exchanges is with Bitcoin and to make it easier to understand is like the US dollars being the base and pair with other local currencies through their foreign exchanges. Even there are decentralized exchanges that don't have bitcoin on its pair because they're based with ERC20, BEP20/BSC and other altcoin networks, still bitcoin plays a part with those. Most traders are putting the demand into bitcoin whenever they made a profit from other altcoins. So, rinse and repeat and that's it!

[yudi09]

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 

Bitcoin dominance in the market is one of the reasons altcoin prices follow Bitcoin price movements.
In addition to trading with stable coins, many exchanges trade Bitcoin with altcoins such as BTC/ETH and BTC/BNB.
When the price of Bitcoin rises, the price of altcoins can also rise following the price of Bitcoin.

Investors and traders who are experienced with the crypto world realise that the ultimate goal in investment and trading activities is to get as much Bitcoin ownership as possible so altcoins are used as an alternative to getting Bitcoin.

[CryptoHeadlineNews]

Since I am not very familiar with bitcoin and I fell behind for a spell since I was too busy with school, I am making an effort to absorb what I learned while studying it.

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

in regards to this question I will like to make you understand that Bitcoin was the first cryptocurrency to ever come into existence, and as such still has the highest volume in terms of total market capitalization, which is why if Bitcoin happens to have a major or minor attack it affect other coin simply because Bitcoin control the major volume of the market. (i.e. just like saying that Bitcoin is the major shareholder of the crypto market, which is why whatever move it takes, others are likely to follow sort).

[D ltr]

maybe we are the same in knowing bitcoin, but I used to know meme coin, which I got from bounties and airdrops when I first got to know crypto, it lasted 2-3 months. I just understood that btc is the parent of crypto itself where every time the price of btc goes up, even only 10-40% has a huge effect on the value of altcoins that have exchanges to btc
so in conclusion, in my opinion, bitcoin drives the cryptocurrency market because bitcoin's market capitalization is bigger than other follower coins like the altcoin

[Abu-Naim]

I am aware that the value of other coins is affected by the price of bitcoin, which is the first and most well-known cryptocurrency. How and why various cryptocurrencies respond to variations in the price of bitcoin baffles me. 
I need clarification on this, kindly.

Bitcoin is the first version cryptocurrency coin that altcoins refer to. Bitcoin is like the leader who leads the entire market while altcoins follow the lead, which is why it has the highest market cap and trading volume. Altcoins are centralized, whereas Bitcoin is completely decentralized.