Recently I was asked "why do all the Alts follow BTC?". Here's my thoughts on why the market is so intertwined.
- Crypto is is still highly speculative as most coins have yet to implement their use case, thus have no ecosphere outside of the market.
- Since BTC is the main trading partner of crypto and primary fiat transfer it has a implicated relationship between the entire market.
- without use case, traders become the main drivers of the market and have created strategies that work with the above and capitalizes on the difference of liquidity between BTC and Alts.
Conclusion:
Once alt coins find true use case they will no longer be so intrinsic to BTC, until then BTC will continue to be the true reflection of sentiment and trading currency within the market. Due to this dominance it benefits from the market as a whole, just as the market suffers its losses as one.
Wishing you blessings, the only constant is change❤️