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Why Altcoins follow the movements of Bitcoin? -Crypto Worth

Being the originator of space, Bitcoin is often looked as path maker of crypto space. After analysis, alternative coins revealed over 40-50% dependency on BTC.<br><br>Visit Our Website: https://thecryptoworth.com/bitcoin-altcoin-relation-explained/

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Why Altcoins follow the movements of Bitcoin? -Crypto Worth

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  1. Bitcoin-Altcoin: Relation Explained

  2. The crypto market is the most volatile global market at present. The fluctuations in the prices of coins in the market are rapid and can quickly turn a broke to a millionaire or a millionaire to broke overnight. Moreover, the crypto space has advanced, and the market is touching new heights every month.

  3. The heart of space is Bitcoin since it is the first cryptocurrency and has the biggest market cap in space. It is the market’s almighty. However, Bitcoin does not enjoy space alone after the concept of Altcoins became mainstream.

  4. ALTCOINS: ANYTHING OTHER THAN BITCOIN The term itself is a combination of Alternative and coin, referring to the alternatives of Bitcoin. However, Bitcoin is the originator of Altcoins since most Altcoins operate on a replica of Bitcoin’s protocols and functions.

  5. ALTCOINS DEPENDENCY ON BITCOIN PRICE MOVEMENT Over the years, it has been observed that Altcoin’s price movement often follows the trend of Bitcoin to some extent. Bitcoin is the biggest player due to the immature market. If Bitcoin plunges down heavily, so the market would be. Similarly, if Bitcoin rockets, the major chunk of the market would be green. To put it succinctly, Altcoins’ prices are determined by Bitcoin.

  6. MEASURING THE INDEPENDENCY OF DIFFERENT ALTCOINS Firstly, the coin which has to pair with Bitcoin to operate in markets is directly correlated to Bitcoin’s price movement to a certain extent. Coin pairs can be labelled as two assets that are compatible to be exchanged with each other for equal values. For, e.g., $10 of Bitcoin is used to buy $10 of ETH. This pair will be ticked as “ETH/BTC”. Prices of such coins (Pairs) move as the Bitcoin goes.

  7. FINAL LINE That’s the wrap; we can now say that the price movement of all Altcoins is dependent on Bitcoin in some ways. However, they might not follow its trend in instances. The price movements rely on Bitcoin since it has the biggest market cap in the cryptocurrency space, is paired with the majority of Altcoins to operate, and is the most traded coin, too. All Altcoins get a cold when it sneezes.

  8. Thank You For Watching • https://thecryptoworth.com/

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