What are the reasons that make cryptocurrencies affected by their price rising or falling against Bitcoin and Ethereum only?!
Most other cryptocurrencies, known as "altcoins," are significantly affected by the price movements of #البيتكوين (BTC) and #الإيثريوم (ETH) for the following reasons:
- Bitcoin Dominance: Bitcoin is considered the "king of cryptocurrencies" and has the largest market capitalization. Any significant price movements (up or down) often impact the entire market. Investors often see Bitcoin as a key indicator of the health of the cryptocurrency market.
- Ethereum as a Platform: Ethereum is the second-largest cryptocurrency and a major platform for many decentralized applications (dApps), non-fungible tokens (NFTs), and decentralized finance (DeFi) projects. Therefore, its performance affects the cryptocurrencies associated with its platform or those that use its technology.
- Market Sentiment: When the price of Bitcoin $BTC and Ethereum $ETH rises, investor confidence in the market generally increases, driving many altcoins to rise. The opposite is true; a decline in their prices can lead to a sell-off in altcoins.
You may have noticed that, but this is for clarification and to mention the reasons..
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