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 price of Bitcoin controls the crypto market as a whole. If Bitcoin experiences a bull run, some investors who hold altcoins panic and sell, causing the currency to crash to follow Bitcoin's phase. Similarly, if Bitcoin is pumping, many investors will want to invest in other altcoins in order to earn enormous profits, causing a price pump.