Quote from: Fortify on February 20, 2022, 02:54:39 PM

Quote from: jinneas on July 22, 2021, 01:30:54 AM

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?

It's hard to pinpoint all the interconnections, hopes and fears that drive financial related transactions but I distinctly remember right after Covid started. The stock market began to crash and Bitcoin went with it - so the effect is not limited to specific assets, or sub classes within those assets. However there definitely is correlation between cryptocurrencies for all sorts of motives - you've got whales involved, which might sometimes be hedgefunds trying to take profits when things look negative and you've got people who bought in but were hoping to see rises, then they get spooked at the large amount of volatility in the market - people are happy to see it go up 10% in a day, but might get spooked if it drops 3%. It's impossible to tie these things down to one reason, because there are millions of different motivations and requirements out there.

Actually all of the investors belong to one class and they invested on a large scale on all of these assets and the are interconnected with each other in their specific investors platforms and they all stay alert about all the news on crypto these may clear your doubt because they all get informed at once of a sudden rise and fall and they all react at the same time which reflects in the markets of all of these assets. That rise or fall continue for some period of days or weeks which means that a good number of investors and traders get the alert or realize the situation later and they react later. That thing interconnect all of the assets in market movements. While the price difference of each coin is a different matter that difference is because of the demand and supple and the marketcap of the coin/asset.