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 increases, investors exit positions, and altcoins also decline.

When BTC rises, the market comes alive, liquidity starts to flow in, and altcoins also gain momentum.

Pairs to BTC

Previously, almost all altcoins were traded in pairs with BTC (for example, ETH/BTC, XRP/BTC).

This reinforced the correlation: to buy an altcoin, one had to first buy BTC.

General investors and large funds

Large players (funds, whales) first enter BTC, then move to $ETH and then to riskier assets.

Therefore, altcoins only grow after BTC rises.

📊 Examples of dependency

BTC rises → ETH and top altcoins (SOL, BNB, AVAX, etc.) rise.

BTC falls → the market collapses, even promising projects lose 20–50%.

But! Sometimes altcoins decouple from BTC and rise when:

There is news about the project (listing, partnership, product launch).

Hype/meme effect (DOGE, PEPE, FLOKI).

The beginning of the altcoin season ("altseason") — this is when BTC is in a sideways trend, and altcoins are pumped.

📉 What does it mean when "the coin follows BTC's movement".