6. Market Sentiment and Psychology: As the market matures and investors become more sophisticated, the herd mentality might diminish, leading to more nuanced investment strategies that consider individual project merits rather than just following Bitcoin.
However, it’s important to note that while the correlation might weaken, it may not completely disappear. Bitcoin is likely to remain a significant influence in the cryptocurrency market due to its established position as the first and most well-known cryptocurrency. Major movements in Bitcoin’s price can still impact overall market sentiment and liquidity.
In summary, while a decrease in Bitcoin dominance could lead to altcoins exhibiting more independent price movements, some level of correlation is likely to persist due to Bitcoin’s continued prominence and the interconnected nature of the cryptocurrency market.
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