If we look at past Bitcoin price movements Bitcoin If it drops by 10%, Ethereum almost 15% and others altcoins There is a decrease of approximately 20%.

Such moves have been and continue to be seen frequently in the crypto asset market. of this situation There are several reasons:

The amount of money available in the Bitcoin market is greater than that of altcoins.

Bitcoin is best known for being the first crypto asset; represents the entire crypto market and at the same time Bitcoin is the most valuable crypto asset in terms of market value. Most of the money circulating in the crypto asset market is first in Bitcoin and then in altcoins.

Because Bitcoin has more buyers when it falls sharply, its price rises with a drop of, say, 10%. can remain limited. However, because there are fewer buyers in altcoins and so less purchasing power Therefore, these sharp declines will be greater than Bitcoin’s.

Bitcoin is a safe haven, while altcoins are speculative assets.

Satoshi Nakamoto’s invention, Bitcoin, is complete is decentralized And digital gold claims to be. For these reasons, Bitcoin is even within the crypto asset market. safe haven exists acts as.

Altcoins are They are assets developed as an alternative to Bitcoin, that is, speculative assets. Therefore, when Bitcoin falls, altcoin investors will fear increases and prices fall more sharply.

While Bitcoin’s purpose is clear, altcoins are still evolving.

The purpose of Bitcoin is An electronic payment system without intermediaries will be so. The purpose of altcoins is not clear.

There are more than 26,000 altcoins on the market and all of them both different from each other and still in development is in the process. In particular, the fact that there are developer companies behind altcoins has a major influence on the price movements of altcoins. This effect positive or negative It could be in the direction.

The altcoin market is more dependent on news and new developments than Bitcoin.

Although Bitcoin is the most famous crypto asset legal prescriptions And hacking‘S It can be influenced by news such as. On the other hand, altcoins are protected from such developments. much more is being influenced.

Trust in altcoin developers dropped very quickly when the price of Bitcoin fell. disappears. For example, even if there is a small problem in the development team, company or community behind an altcoin, this problem will be reported to investors if the Bitcoin price falls. very large may come, and as a result the price of that altcoin will drop sharply.

Altcoins with a low market capitalization are susceptible to manipulation.

In the crypto asset market 26,000We said there are more than 1 altcoins. Its current market value is 25,900 It’s less than $500,000.

When an investor who trades with high amounts wants to buy these altcoins with a low market value The price can rise considerably. But as the price of Bitcoin falls, this so-called investor wants to sell his investment, that altcoin The price can drop very sharply.

When do investors prefer to buy Bitcoin and altcoins?

Although Bitcoin is the most purchased crypto asset, Bitcoin is rising in some cases some altcoins It is rising more than Bitcoin.

One of the reasons behind this, as we mentioned above very important developments and in some cases this is because social media influencers are making statements about that altcoin.

As the price of Bitcoin falls, investors are generally interested in the crypto asset market. loses faith and both their Bitcoins It also sells its altcoins. While Bitcoin price moves sideways, investors remain By buying altcoins It wants to take advantage of possible upward movements.

This idea essentially applies to altcoins. speculative property It’s because they are. At the same time, professional investors lose money after the price of the altcoins they buy rises. By exchanging for Bitcoin Increases the amount of Bitcoin they hold.

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