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Bitcoin (BTC) has a huge influence on the entire crypto market, and here's how it happens:

1. Bitcoin Dominance (BTC Dominance)
Bitcoin is the first and most capitalized cryptocurrency, so its movement often sets the trend for the entire market.
- When BTC rises – altcoins usually rise too, but with some delay.
- When BTC falls – most altcoins fall harder (the "bloodbath" effect).
- When BTC consolidates (moves sideways) – investors switch to altcoins, which can trigger an "altseason".

2. Psychological Influence
- BTC is perceived as "digital gold" and an indicator of trust in the crypto market.
- Sharp movements in BTC (for example, reaching a new ATH or steep corrections) trigger FOMO (fear of missing out) or panic.

3. Influence on Liquidity
- Most altcoins are traded in pairs with BTC (for example, ETH/BTC) or stablecoins (USDT, USDC).
- If BTC sharply falls, traders often convert assets to stablecoins, which decreases the liquidity of altcoins.

4. Correlation with Other Assets.
- During periods of BTC growth, many altcoins mimic its movement, but with greater volatility.