Can anyone here explain me how the cryptomarket works? I have been following the coinmarketcap for months and one thing I observe is when one coin move up almost all coins moves up. Is that a normal thing in crypto? Are coins are dependent to all coins unlike in stock market where one stock is totally independent to others.
Somehow the coin that has big influence to the price of other coins is bitcoin. Almost all exchanges make bitcoin as base coin that's why when its value is crashing, majority of the coins crash as well because traders would secure their coins by selling it maybe in exchange to fiat and then when bitcoin is having a run again, they would buy again the coins or bitcoin itself and then when it move sideways, they would transfer to other coins because altcoins shine when bitcoin is moving sideways.
When bitcoin is having a bull run, traders wouldn't want to miss the gains that's why they would sell their altcoin and stay with bitcoin. During the bull run, you can observe that altcoins are bloody as well. During a crash or major correction, altcoins are in red because of the reason above. You can be profitable in altcoins when bitcoin is not having rapid movements because traders would shift to alts.