Why is toke price dropping suddenly? For Bounce token AUCTION one… -18% already
Dude the whole market has dropped 25 to 30 percent. Of course all coins will droo
Why is this happening though?
I want to know the reason ,too.
Bitcoin’s dominance of the crypto market cap
The fundamental reason behind altcoins following Bitcoin is because altcoin prices are typically measured in Bitcoin. The original crypto asset may be flanked by over 3,000 competitors, but it still commands over half of the entire cryptocurrency market cap. This domination of the crypto market affords Bitcoin a lot of influence and control.
In addition, most altcoins can’t be purchased directly using fiat currencies; instead, the majority of buyers purchase some Bitcoin first, and then trade it for their altcoin of choice. Therefore, if someone holding altcoins wants out of the crypto industry altogether, it’s most likely they would first sell their assets for Bitcoin, and then convert Bitcoin back to a fiat currency. This symbiotic relationship means that the value of different altcoins is often tied to Bitcoin.
As a result, an altcoin’s value is often measured against the price of Bitcoin, so the price of altcoins could go down if Bitcoin goes down, and conversely, the price of altcoins could go up if Bitcoin goes up.
“Usually you’re going to have one leader, and everyone follows the leader because they’re all interconnected,” said Michael Dunworth, CEO of Wyre, a company using blockchain technology to build effective ways of transferring money.
As we’ll discover, this rule of thumb doesn’t always hold true, but there is also something to be said for Bitcoin acting as a reserve currency for the biggest crypto exchanges.