Observing the cryptocurrency market, we found that although most cryptocurrencies have price differences, most of them will fluctuate with the price trend of Bitcoin. When the price of Bitcoin increases, most other cryptocurrencies will also increase, and vice versa.
Is this trend due to large accounts operating on multiple exchanges or countless retail investors carrying price differences? Or is it caused by other operations?
Because cryptocurrencies rise and fall with the rise of Bitcoin. When Bitcoin rises, everyone will buy it. When Bitcoin fell, everyone would sell their coins due to market panic. In some cases, Bitcoin will rise, but other cryptocurrencies will not rise.
And sometimes Bitcoin will rise, other currencies may not necessarily rise.
Yes, it's true that all of this is also influenced by the market panic. Because it has become a stigma for traders, if the price of bitcoin goes up, altcoins also go up, and vice versa if the price of bitcoin goes down they panic because the stigma of altcoins will also fall deeper.