I still don't really understand Bitcoin??? Currently, the value has exceeded the shocking figure of $100,000 😱
Although Bitcoin is often seen as the 'mother ship' pulling along altcoins, the reality of the cryptocurrency market is much more complex than that. Let me share some information about this currency with
Why don't altcoins always move with Bitcoin?
There are many factors that affect whether altcoins 'follow' Bitcoin or not, including:
* Technology and applications:
* Independent potential: Many altcoins are built on different technologies and platforms, targeting specific goals and applications. This allows them to develop independently and not be completely reliant on Bitcoin.
* Innovation: Altcoins are often updated and continuously improved, bringing new features and advantages, attracting investors and creating distinct growth.
* Community and marketing:
* Community support: A strong and enthusiastic community can drive the value of an altcoin, regardless of the overall market direction.
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* Unexpected events: Legal or political events related to a specific altcoin can cause significant price volatility, independent of Bitcoin's movements.
* Investor sentiment:
* Risk diversification: Many investors want to diversify risk by investing in various cryptocurrencies such as AI, DeFi, and hybrid systems.
* Speculation: Some investors may choose to invest in altcoins because they believe these coins have higher growth potential than Bitcoin in the short term.
reality:
In recent years, we have witnessed many cases where altcoins go against the trend of Bitcoin. For example, while Bitcoin is undergoing a correction, some altcoins related to the DeFi sector have experienced strong growth thanks to the development of decentralized finance applications.
Conclusion:
Although Bitcoin remains the largest and most influential cryptocurrency, the cryptocurrency market is becoming increasingly diverse and complex. Altcoins have their own opportunities and challenges, and they do not always move in tandem with Bitcoin.
