#BTCPrediction
The impact of Bitcoin on major cryptocurrencies, whether in the rise or fall, especially the major coins or altcoins such as Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and Solana (SOL).
1. Ethereum (ETH): It often moves in parallel with Bitcoin. Although it has broader technical uses, the market value of Ethereum is directly affected by the market conditions driven by Bitcoin.
2. Binance Coin (BNB): When the price of Bitcoin rises, the daily trading volume increases, leading to more use of BNB for fee reductions.
3. Cardano (ADA) and Solana (SOL):
Considered strong projects aimed at developing infrastructure for smart contracts and fast transactions, their price performance often follows Bitcoin's movement because liquidity and large investments are primarily concentrated in Bitcoin first. Therefore, when its price drops, investors reassess their risks and reduce their exposure to altcoins.
Why is there such a significant impact?
Market Dominance (Bitcoin Dominance):
This term refers to the ratio of Bitcoin's market value compared to other currencies. When the ratio is high, Bitcoin is the primary driver of market trends.
Investor Sentiment:
Bitcoin represents trust in the cryptocurrency market.
Investment Structure:
Funds and investors use Bitcoin to evaluate other currencies.
