When Bitcoin goes up, altcoins like Ethereum and Solana go up too. And when BTC goes down, the entire market goes red. Why does this happen? Let's find out!
1. Bitcoin is “digital gold”
Bitcoin is the first and most valuable cryptocurrency with a market capitalization of over $1.2 trillion. Its movements create a “whiplash effect” on the market:
- 📈 BTC Growth → Confidence → Investments in Altcoins.
- 📉 BTC Decline → Fear → Redirecting Capital to Stable Assets.
2. Bitcoin Dominance
Bitcoin's market share is an indicator of sentiment: if it rises, money flows into BTC; if it falls, there is risk with altcoins. Often before BTC halving, we see its rise, and then capital starts to shift into altcoins.
3. Market Psychology
Bitcoin attracts newcomers and the media. As BTC rises, hype emerges, and people start investing in altcoins, creating new waves of growth.
4. The Opportunity for Altcoins to 'Decouple'
Can altcoins manage to 'decouple' from Bitcoin? Examples of successful altcoins like Ethereum and Solana show that it is possible. However, as long as BTC remains dominant, altcoins are its companions.
🤔 What does this mean for you?
- 🔍 Keep an eye on BTC: It’s your barometer. BTC falling? Expect alt sell-offs.
- 💡 Look for 'divergences': If an altcoin is rising while BTC is falling — analyze the situation.
- ⏳ Long-term: The future of altcoins promises interesting changes, but it will take time.
What do you think? Can an altcoin dethrone Bitcoin, or does BTC remain the 'digital standard'? Share your thoughts in the comments! 👇$BTC $ETH $SOL
#Криптовалюты #инвестициидляначинающих #Write2Earn
