I have recently been into altcoin trading. I just want to know, does the price of bitcoin affect the price of other cryptocurrencies as well? How? I really want to know. I have noticed that ever since the bitcoin price pumped up and reached 4,000 USD, the price of the altcoins had gone really really low. I almost lost my invesment due to this sudden drop. Does bitcoin price have something to do with this?
Since there aren't a lot of trading pairs alt coin has, they tend to be traded to eth and then to bitcoins eventually if there really aren't any good pairs in the future. This somehow increases bitcoin demand since people will need bitcoin to trade their unknown alt coins to.