0
If bitcoin price goes up, Will that increase the value of the other cryptocurrencies?
Edit: If yes, then WHY? Seems a mystery for me since I guess every coin has its independent price.
Thank you
Relation between bitcoin price and other cryptocurrencies prices
Answers
0
It depends, obviously. Short answer, yes.
Bitcoin used to make up a huge percentage of the value of all Cryptocurrencies, so obviously since Bitcoin was the largest and most used, if it were to crash or change in price drastically, obviously most of, if not all other cryptocurrencies would be affected.
Bitcoin still makes up a large percentage of the Cryptocurrency Market Cap, over 34% on January 25, 2018, followed by Ethereum with 18%.
This is important not to be mistaken though. Perception is what controls the price of Cryptocurrencies.
since bitcoin is the leader of all cryptos, if news were to come out that someone figured out how to exploit it's "proof of work" algorithm, or something giving Bitcoin a negative perception, it would loose value.
Because Bitcoin is so prominent in the crypto world, all other coins would be impacted too, because its literally the "leader".
of course if news comes out that a very small and unknown cryptocurrency would grant you super powers if you owned enough, just that cryptocurrency would go up, not really impacting others because it doesn't have a large market cap.
So in short, the larger market cap, the larger the impact on other currencies
“So in short, the larger the marketcap the larger the impact on other currencies” ... still I do not get WHY that happened since every currency has its own value. It sounds to me like if Iphone mobiles decrease in their value that would impact Sumsong or Nokia which is unrealistic I think. – Gamal Thomas – 2018-01-26T04:33:03.037
1The price of these cryptocurrencies (and stocks) are partly dictated by public appeal, consumer confidence, and the media. If the media says the Nasdaq was just scamming everyone (or something negative I dont know), then because Nasdaq is the umbrella so to speak, lots of stocks would crash as well as Nasdaq because there wouldn't be any consumer confidence or appeal. The same works with cryptos, Bitcoin is still the main one, even if there's tons of altcoins, but unlike Nasdaq you could say It indirectly influences because it doesn't "house" stock or etc. – Christopher Cruttenden – 2018-01-26T05:07:58.000
Your comparison is not valid @GamalThomas. You don't need to buy a fraction of an iPhone with your FIAT to trade it for a samsung. You just go and buy the samsung with FIAT. – caiocpricci2 – 2018-01-26T05:07:59.870