The Price Correlation Between Bitcoin and Altcoins

[Mika]

In early times, when altcoins were just getting popular, there was an interesting price correlation between bitcoin and altcoin. When bitcoin appreciated altcoin depreciated and when bitcoin depreciated, altcoins appreciated. That happened because you had to use bitcoin to buy altcoins and when you were spending bitcoin to buy altcoin, you were creating less demand for bitcoin but greater demand for altcoin. We all know, the price of crypo currencies is heavily dependent on demand and supply.

However, these days there is a different kind of price correlation between bitcoin and altcoins. When bitcoin depreciates a lot of altcoins also depreciate and when bitcoin appreciates a lot of altcoins also appreciate.

What does this actually mean for the investors?

Well, you may not actually benefit much by investing in various currencies.

 

[kayode10]

Having the same price movement between bitcoin and altcoin can be coincidence. I'm sure if you look at any other coin in the marketplace, you may likely to find some that goes in the same direction as Bitcoin. If that is the case between the two coins, it means it is an opportunity for whoever invest in Bitcoin to also invest in altcoin.

 

[Jasmine]

Not all altcoins are related to Bitcoin in terms of price corelation. For instance, recently when Bitcoin dropped, Ethereum and ADA also dropped, but Shib inu has continued to go up. Since Bitcoin is a leader of the crypto currency market, therefore, a lot of altcoins gain traction when Bitcoin gains value.

 

[Setho]

In the cryptocurrency space there is something that is called dominant and presently bitcoins dominant stand at a very high 33%. Bitcoin is still the hottest cryptocurrency and after a bullish run a lot of people who are removing their money from it and using it to buy alternative coins which explains this kind of scenario.

 

[Suba]

As we know sometimes Bitcoin and Altcoin get along, meaning that both can go up or down at the same time, but sometimes the movement of the two is very opposite. Bitcoin price goes up while Altcoin price goes down or vice versa. That is why Blockchain center distinguishes Bitcoin season and Altcoin season.
Of course the main source is from supply and demand. Price Correlation, when the price of Bitcoin is headed for a bullish trend, people will move to hold Bitcoin, and people will move to Stablecoins if the price moves horizontally. When the market is relatively stable, investors will switch to Altcoins so that it becomes Altcoin season.

 

[Jasmine]

In the early time when people could buy altcoin only by using bitcoin, altcoin price and bitcoin price ws co-related. Bitcoin rose when altcoin went down and when bitcoin fell when altcoin went high. But these days you can buy altcoin with fiat money and the price is not co related.

 

[darogger007]

Altcoins run the gamut when it comes to price correlation with BTC — sometimes they skyrocket in value with Bitcoin, sometimes their prices remain largely unaffected. Other times, in times of serious market upheaval, the value of altcoins tank twice as fast as that of Bitcoin's.

 

[gmrcrypto]

Btc is inverse proportional to Alt Coins and so if btc goes up, alts go down