Why Altcoins are related to BTC? Is this tendency over?
Why Altcoins are related to BTC? Is this tendency over?
First thing first. 5 years ago I made a mistake. When I approached this world and read about some projects, I didn’t choose bitcoin. I thought and I think it’s an obsolete blockchain. My mistake was that I couldn’t see it as a store of value.
For that reason I built a small long term portfolio with my internship’s earnings based on ETH, SOL, DOT mainly and 2 more ones. Obviously I’m not rich now. Observing the market during these years I have noticed that when BTC drops, all the altcoins do the same; and vice versa.
If we see ETH, SOL, DOT as blockchains more efficient than BTC one, why their prices are still related to BTC?
It’s the name that everyone knows, when it goes up it draws more newbies in and a lot of them look for the next bitcoin causing a swing in dominance but then those coins don’t perform as well as expected most the time because you can never beat the marketing Bitcoin has, so then they swerve back into Bitcoin as the “safe” option and Bitcoin starts to swell again repeating the cycle, along with many other factors about price of course!
Because it’s the first Blockchain, Satoshi’s wallets haven’t moved and are never expected to, and as you said, it’s a store of value that will most likely increase every cycle.
Money goes into BTC, more money comes out and moves into alts, institutional investors sell everything and we wait another 3 long depressing years.
When BTC goes up, people sell/convert their other crypto to get more BTC.
Everything flows into BTC.