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?
The explanation for me is simple, the only currency that has a life of its own is BTC, and therefore altcoins do not have a life of their own, they all depend on BTC, as I have said before, the only alts that go up a lot when BTC goes down are those that are driven for the "Pump" and "Dump", and there are many like that, in fact in Binance there are many currencies that have that performance, and when the pumps occur they naturally occur again in a repetitive time frame, some in months, others in a few weeks.
When BTC rises, normally the alts are stuck for a certain time, then they go up following the direction of BTC, just as when BTC falls in price, the alts bleed dramatically.
It is hardly possible to agree with such a statement that bitcoin is the only cryptocurrency in this market that has a life of its own. We know that the level of capitalization plays the main role here and, as a consequence, the level of price dominance. Bitcoin has a very high capitalization - $ 814 billion and this figure is very different from other cryptocurrencies. Therefore, its price dominance is now 46.4 percent. This leads to the fact that almost all altcoins follow the price movement of bitcoin.