$BTC Watch Bitcoin: If it collapses, other currencies will collapse!
In the world of cryptocurrencies, Bitcoin remains the undisputed leader. Not only is it the first cryptocurrency to come into existence, but it is also the most influential on the entire market. That's why it is always said: "If Bitcoin sneezes, the rest of the currencies catch a cold."
Why is Bitcoin considered a key market indicator?
1. Liquidity and dominance:
Bitcoin accounts for a large percentage of the total market capitalization of cryptocurrencies (Dominance). When it rises, sentiment improves, and when it falls, investors rush to sell.
2. Trust and relative stability:
Bitcoin is considered the "safe haven" in the digital market, like gold in traditional markets. If investors lose confidence in it, fear quickly spreads to the other currencies.
3. The psychological and technical relationship:
Most investors and institutions use Bitcoin as a primary indicator for market movements, creating a psychological effect and collective behavior (FOMO or FUD) that impacts everyone.
What happens when Bitcoin collapses?
Altcoins drop by larger percentages, due to decreased liquidity and confidence in them.
The decline accelerates due to liquidation orders.
The entire market collapses if there are no support signals or clear institutional intervention.
Summary:
Watch Bitcoin closely!
If it breaks a strong support level, prepare for a correction wave that includes the entire market. However, if it holds or rebounds, it may be an opportunity for smart buying. Always remember:
