The connection of Bitcoin (BTC) with other cryptocurrencies (altcoins) is one of the most important factors in the crypto market. Here’s how it works and why many coins are "tied" to BTC movement:
📌 Why the crypto market depends on Bitcoin
$BTC — the main market indicator
Bitcoin is the first and largest cryptocurrency by market capitalization.
It serves as a "barometer" of market sentiment. When BTC falls — fear intensifies, investors exit their positions, and altcoins also fall.
When BTC rises — the market comes alive, liquidity flows in, and altcoins also get a boost.
Pairs to BTC
Previously, almost all altcoins were traded in pairs to BTC (for example, ETH/BTC, XRP/BTC).
This strengthened the correlation: to buy an altcoin, you first had to buy BTC.
General investors and large funds
Large players (funds, whales) first enter BTC, then into $ETH and further into riskier assets.
Therefore, altcoins only rise after BTC rises.
📊 Examples of dependence
BTC rises → ETH and top altcoins (SOL, BNB, AVAX, etc.) rise.
BTC falls → the market crashes, even promising projects lose 20–50%.
But! Sometimes altcoins decouple from BTC and go up when:
There’s news about the project (listing, partnership, product launch).
Hype/meme effect (DOGE, PEPE, FLOKI).
The beginning of the altcoin season ("altseason") is when BTC is sideways, and altcoins are being pumped.
📉 What does it mean when a "coin repeats BTC movement"
This means:
It has a high correlation with Bitcoin (usually 0.8–0.95 on a scale from -1 to 1).
Its chart almost copies BTC: peaks, drops, reversals happen at the same moments.
📈 When coins can decouple from BTC
News background for the project.
Launch of tokenomics, staking, buying.
Connecting influencers or funds.
Low capitalization and pump groups.
🧠 How to use this in practice
The beginning of BTC growth — look for strong altcoins that have not yet started moving.
BTC is sideways — a phase of altcoin growth.
BTC falls — it’s better to exit high-risk alts or switch to stablecoins.
