You're absolutely right, and this correlation between Bitcoin and the broader cryptocurrency market is well-documented. Bitcoin often serves as the market's sentiment indicator, so its price movements can trigger similar trends across altcoins due to investor behavior and market psychology.Hello Everyone,
I wonder if anyone has a logical explanation for this, but can anyone explain to me why all cryptocurrencies seems to be interconnected?
Whenever Bitcoin (BTC) declines, all other coins seem to follow. I understand this might be due to the "fear effect" where people think, "Oh my God, I'm going to lose everything," and start selling their investments.
But does this happen to all coins and in the same time? It really feels like they are all equally connected to each other. If the "big brother" (BTC) falls, then the whole "crypto family" seems to decide to do the same.
Any thoughts? Or am I just being paranoid?
Bitcoin takes a hit, most altcoins tend to follow, almost as if they’re tethered to BTC’s performance. It does feel like the market moves in unison, possibly because Bitcoin sets the tone as the dominant player in the crypto space. I think it's a mix of market sentiment and how deeply intertwined the crypto ecosystem is with Bitcoin.I wonder if anyone has a logical explanation for this, but can anyone explain to me why all cryptocurrencies seems to be interconnected?
Whenever Bitcoin (BTC) declines, all other coins seem to follow. I understand this might be due to the "fear effect" where people think, "Oh my God, I'm going to lose everything," and start selling their investments.
But does this happen to all coins and in the same time? It really feels like they are all equally connected to each other. If the "big brother" (BTC) falls, then the whole "crypto family" seems to decide to do the same.
Any thoughts? Or am I just being paranoid?
Hello Everyone,
I wonder if anyone has a logical explanation for this, but can anyone explain to me why all cryptocurrencies seems to be interconnected?
Whenever Bitcoin (BTC) declines, all other coins seem to follow. I understand this might be due to the "fear effect" where people think, "Oh my God, I'm going to lose everything," and start selling their investments.
But does this happen to all coins and in the same time? It really feels like they are all equally connected to each other. If the "big brother" (BTC) falls, then the whole "crypto family" seems to decide to do the same.
Any thoughts? Or am I just being paranoid?