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?
Most cryptocurrencies are based on trading Bitcoin. If the price of Bitcoin (based on USD) falls, the other cryptocurrencies will also fall. Since the exchange price between Bitcoin and the exchanged cryptocurrency will remain the same.