The Dependence of $ETH on $BTC Price
ETH is the #2 token in the world. It has a strong ecosystem, its own apps, a large community, solid project support, and many investors. But all of this still isn’t enough for ETH to break free from BTC's price influence.
Why is this the case? Some exceptions exist, like $XRP or LINK, which follow their own price paths and are less affected by BTC. But here’s why most altcoins, including ETH, are tied to BTC:
1. BTC as a Market Benchmark
Bitcoin was the first cryptocurrency and set the foundation for the entire market. Its movements influence investor sentiment and impact all altcoins, including ETH.
2. BTC’s High Liquidity
BTC has the highest trading volume. Its price changes often trigger market-wide movements since BTC is a base asset.
3. Market Psychology
BTC represents trust in crypto. When BTC rises, it creates positive expectations. When it falls, it causes panic, affecting ETH as well.
Despite ETH's independence as an ecosystem, it remains tied to BTC’s dynamics. If you’re investing in ETH, you need to follow BTC’s trends because it remains a major force in the crypto market.
I believe that over time, we’ll see other "super tokens" challenge BTC’s dominance and create new rules in crypto trading. ETH has the potential to become independent, but it still needs time to get there.
#ETHProspects #BTCStateReserves #CryptoSurge2025 #BTCFocus