The altcoin would be triggered when bitcoin reaches a very high value because it is going to create a positive sentiment in the entire cryptocurrency market which would definitely make investors to diversify their portfolios and they would want to increase their interest by invest investing in the altcoins as well. According to history, the increase the price of Bitcoin will lead to increased in the price of altcoin because they would also experience substantial gains as well. Investors would also want to explore alternative cryptocurrencies so that they can make higher profit.
What will happen to the altcoin when bitcoin surges?
- Thread starter Reedex
- Start date
Bitcoin has a strong impact on the altcoin and it may increase the liquidity of the altcoin if the trading volume of the Bitcoin increases. Moreover, the increase in the value of bitcoin would definitely lead to the price volatility in the altcoin space.
- Thread starter
- #3
The dominance of Bitcoin is very clear in the cryptocurrency market and it dominates in terms of market capitalization and this might actually decreases the number of investors that would want to allocate their funds to altcoins.
It is possible for altcoin to experience a dip in its USD value because investors would want to move their funds from alt coins to Bitcoin when there is a price rally.
- Thread starter
- #5
We should understand very well that there are so many altcoins that have outperformed Bitcoin most especially during the altseason . So many altcoins attract attention of traders and investors especially if they have strong fundamentals.
If the price of Bitcoin increases tremendously, it will definitely lead to increase in media coverage and it will enhance public interest in the overall cryptocurrency space which will be a very good way for the alt coins to also gain attention.
I understand that alt coins that has specific utility and technological advancement would stand out and it is going to experience a significant growth especially if they offer valuable solutions that bitcoin does not address.
- Thread starter
- #9
The rise in the price of Bitcoin would definitely attract institutional investors and individuals that are interested in cryptocurrency market because they would be able to explore different investment opportunities that is in cryptocurrency.
It is important to consider that some alt coin might face challenges if investors are soley interested in Bitcoin and they would not want to invest their money in smaller project with lower liquidity.
It is mportant to understand that the market dynamics such as supply and demand is one of the things that can influence the prices of the altcoin. If there is an increase in the demand for Bitcoin, it could definitely lead to rise in the price of altcoin as well.
Some altcoins would always appreciate at the same time that the bitcoin appreciates. I know that BCH and BNB have a positive relationship with Bitcoin.
If the altcoin is negatively correlated with Bitcoin, then nothing happens. Such kind of coins have their own market value.
