Why do mainstream coins rise while altcoins fall (why do altcoins have such large price fluctuations)?

08/13/2023 06:50 • Metaverse Matters • 56 views

Why do mainstream coins rise while altcoins fall? Why do mainstream coins rise while altcoins fall?

The price of Bitcoin has been hovering around $8,000 since January 2018, after experiencing three major drops. However, based on historical trends, the price of Bitcoin often falls within the range of $4,000 to $6,000. The downward trend of Bitcoin usually occurs after May of this year, starting from late July 2020 and continuing into early June when BTC was in a relatively high position. In the following months, with the rise of Bitcoin and Ethereum, other digital currencies also showed a significant upward trend, but overall the increase was not significant.

Therefore, we know that there are currently two main situations in the market: firstly, the widespread decline in mainstream currencies leads to most investors selling off some of their assets and waiting to profit and exit the market. Secondly, there is a significant rise in altcoins, which has caused many investors to lose confidence in the cryptocurrency market. Some even believe that cryptocurrencies are Ponzi schemes or scams, leading to a large amount of trapped funds. Both of these reasons indicate the existence of a large number of speculators in the market, and this behavior easily triggers investor panic. When they transfer or sell their chips, it also causes losses. (Note: Due to the volatility of large-cap altcoins, it is not ruled out that some people participate in such events in various ways), but these investors do not want their investment portfolios to face huge risks.

Why do altcoins have such large price fluctuations?

In the past month, Bitcoin has risen from $6,500 to a high of $10,500, an increase of over 70%. At the same time, Ethereum has risen from $700 to around $1,800, doubling its value; Litecoin has also gone against the trend, breaking through the $600 mark and reaching a high of $400, setting a new historical high.

But why do altcoins have such a large total market value? The answer is affirmative. According to CoinMarketCap data, on December 28, 2017, the total global cryptocurrency market volume was approximately $5.58 billion (excluding USDT), with the top five countries being the United States, India, and Hong Kong, accounting for 18.6% and 15.7% respectively. In addition, for most of 2017, the price of Bitcoin was above $10,000. Therefore, during the bull market, most digital currencies tend to fall. (Data source: CoinGecko)

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Why do mainstream coins rise while altcoins fall (why do altcoins have such large price fluctuations)?

Why do altcoins have such large price fluctuations?

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