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?
You'll actually find a similar trend within the stock market - both with the market overall and with certain industries within the market. For example you might find a short term situation where pharmaceutical companies undervalued, water utilities overvalued and bigbox retailers undervalued. When people are afraid there can be a stampede for the exit and everyone tries to get out. Sometimes there is forced selling involved or leverage which can amplify the effect on the way down, causing domino and ripple effect. If somebody loses on Bitcoin, they might decide they want to cut their losses in all cryptocurrency and run - never to return. To answer the question you would have to be able to perceive the independent actions of millions of people living complicated lives and the psychology that drives their trading decisions.