Why does Bitcoin lead the way? And why do other currencies follow it?
When the price of Bitcoin moves up or down, we notice that most cryptocurrencies follow the same path. This phenomenon is not a coincidence; there are logical reasons that make Bitcoin the "primary driver" of the market.
First, Bitcoin is the most famous and widely traded cryptocurrency, making it the main indicator of investor confidence in the market. When it experiences a rise, optimism about the sector as a whole increases, and vice versa.
Second, many smaller cryptocurrencies are linked to the price of Bitcoin through trading pairs, making their movements directly influenced by it. Additionally, large investors often use Bitcoin as a preliminary indicator before entering into other investments.
In short, Bitcoin is not just a cryptocurrency; it is the "market compass" that determines the direction of the winds for other currencies. So, are you ready to ride the wave?
