The cryptocurrency industry is full of thousands of cryptocurrencies. Bitcoin, on the other hand, almost always leads from the front. There are currently more than 3,000 altcoins or non-Bitcoin cryptocurrencies. In general, altcoin prices follow that of Bitcoin. This is because altcoin buyers usually buy Bitcoin with the fit currency to exchange it for the altcoin of their choice.
Since Bitcoin brought about the birth of the cryptocurrency industry in 2009, the famous cryptocurrency asset has been used to buy pizza for the first time. It has now become the sixth largest currency in the world. Bitcoin, however, does not cover all cryptocurrencies; In the first decade of the cryptocurrency industry, the number of cryptocurrencies in existence increased exponentially. on CoinmarketCap. Apart from Bitcoin, there are now over 3,400 altcoins and cryptocurrencies. Yet most of the time, altcoin prices are closely tied to the price of Bitcoin and follow it closely.
Bitcoin’s Dominance on the Crypto Money Market
The main reason behind the rise of altcoins after Bitcoin is that altcoin prices are usually measured in Bitcoin. The leading cryptocurrency asset may be surrounded by more than 3,400 competitors, but it still owns more than half of the entire cryptocurrency market. This dominance of the entire cryptocurrency exchange gives Bitcoin a lot of influence and control. This is why the value of an altcoin is usually measured by the price of Bitcoin, so if Bitcoin falls, the price of altcoins can fall, and conversely, if Bitcoin rises, the price of altcoins can rise.
Michael Dunworth, CEO of Wyre, a company that uses blockchain technology to create effective ways of transferring money, summed up the situation by saying, “You’ll usually have a leader, and everyone follows the leader because they’re all connected.”
While altcoins experience an increase in value, it is sometimes the decline in the value of Bitcoin. A main reason for this is that, with a watchful eye, investors withdraw money from their Bitcoin investments and instead turn to promising altcoins. But conversely, if Bitcoin experiences a bull run on its own, investors will return to the leading cryptocurrency to enjoy a ride of their own. For this reason, Bitcoin is the base currency of the cryptocurrency market. The vast majority of altcoins move with it.
