It might not seem obvious to many, but it is no coincidence that when bitcoin falls in value so do other cryptocurrencies. The reason for this is quite simple and I will get to iti in a minute. However firstly, most cryptocurrencies are not uncorrelated i.e they all move up or down in value at the same time. Hence buying a cryptocurrency expecting it to move in the opposite direction to bitcoin is futile and you would be frankly wasting your time.
So why does this happen? The answer why the whole market trades down when bitcoin goes down is that most cryptocurrencies are traded against bitcoin. That’s no revelation and simple for most people to understand. So, if bitcoin loses buying power then sellers of other cryptocurrencies have no choice but to reduce their offer prices to find buyers. There is no way around this as bitcoin carries the trading volume compared to trading directly between non-bitcoin currencies.
So, I can’t emphasis enough about the importance to the crypto community that bitcoin does well for the future of the industry. Bitcoin’s success is everyone’s success in the crypto community. Peace
Follow me @cryptobebe