What is the link between BTC and newly listed Altcoins?

[Gposas]

It is well known in the crypto market that the price, movement and trend of BTC is among the major determinants of Altcoins trend apart from buying and selling, it is clearly seen that when the BTC is on reddish candles with a down trend of like -3% a subsequent down trend of altcoins is also witnessed on x2%.
Looking at new tokens, at the day of listing there is always a rise in price (for most I've seen) no matter how BTC trends, for like some days or weeks as the case may be, the newly listed token likely trends on its own with demand and supply as the major determinant.. But with time, the BTC trend starts affecting it.. Proving it's Uniqueness.
What could be the connection between BTC and these altcoins?
Your thoughts would be highly appreciated..

[Captain Corporate]

I don't think its twice as much, but its true that it gets quite low. I mean when something, specially a newly listed alt, has a bear period, the result is considerably terrible and we usually do not get anything good out of that. Which is basically a way of market balancing the fact that when bitcoin goes up a bit, they may go up a lot too. So when its up, its a lot more up, and when its down, its more down and that is type of a balance in the market. I understand that it is not a crazy concept to understand because it happens very frequently and because of that a lot of people got used to it already.

[PX-Z]

...But with time, the BTC trend starts affecting it.. Proving it's Uniqueness.
What could be the connection between BTC and these altcoins?
Your thoughts would be highly appreciated..

There's no connection or link between them, it's just psychological effect, when bitcoin have huge declines people get wary that's why they sells their holdings, for this reason it affects people thinking it might be do the same to their other coins that's why they sold too. When this become domino effects, price down percentage of other coins especially new coins/token went almost twice or thrice of btc down is because they are too volatile due to has lower price compare to bitcoin and circulating supply.

[bitterguy28]

What could be the connection between BTC and these altcoins?

bitcoin is the first of many cryptocurrencies which is why it is considered as the standard for the rest of the industry whenever it is doing good investors seem to take this as a positive sign for the entire crypto market and if it is not doing so good then it is a negative sign bitcoin drives the market sentiment as it is the most reliable out of all cryptocurrencies

another reason is that many use bitcoin to trade other altcoins so if many people decide to not buy/sell their bitcoin there will be a significant decline of liquidity among altcoins dropping its price

[Fivestar4everMVP]

What could be the connection between BTC and these altcoins?
Your thoughts would be highly appreciated..

The connection that bitcoin has with Altcoins is first of all, they are all cryptocurrencies and that's  it.
How the price movement of bitcoin is able to affect that of Altcoins is simply based on Bitcoin's dominance level of the market.
Dominance simply means the total share of a cryptocurrency's market cap in the overall market cap of the entire crypto market. That is, to get bitcoin market dominance, you divide the overall cryptocurrency market cap by bitcoins own market cap, you get a percentage of how much dominance/power bitcoin has over other cryptocurrencies, this dominance is what gives bitcoin power to affect other cryptocurrencies with its price movement.

I hope this is clear enough to understand.

[nakmantu99]

...But with time, the BTC trend starts affecting it.. Proving it's Uniqueness.
What could be the connection between BTC and these altcoins?
Your thoughts would be highly appreciated..

There's no connection or link between them, it's just psychological effect, when bitcoin have huge declines people get wary that's why they sells their holdings, for this reason it affects people thinking it might be do the same to their other coins that's why they sold too. When this become domino effects, price down percentage of other coins especially new coins/token went almost twice or thrice of btc down is because they are too volatile due to has lower price compare to bitcoin and circulating supply.

I think psychological effects are also a relationship, because something affects something, so something that influences will relate to what is influenced. Bitcoin as the king will influence altcoin as its follower, that is the reality. So we can't say there is no relationship between bitcoin and altcoin, because both are related, bitcoin will affect almost all altcoins..so it can be said to be connected

[TomPluz]

Bitcoin is the leader in the whole cryptocurrency industry and all the rest are just followers...and that is why in many cases when BTC is down alts will also be downs though there can be some exemptions from time to time. Now, I don't see a lot of connection with that on newly listed altcoins as they are primarily working their way with the demand and supply dynamics and once things are settled then they are now part of the market where Bitcoin is leading the way. We also have to take into account that if an altcoin has no real value in itself then it would certainly suffer losses when they are listed in exchanges as investors can sense value and they must speculate to make some money and not hold for the long-term.

[yhiaali3]

There's no connection or link between them, it's just psychological effect, when bitcoin have huge declines people get wary that's why they sells their holdings, for this reason it affects people thinking it might be do the same to their other coins that's why they sold too. When this become domino effects, price down percentage of other coins especially new coins/token went almost twice or thrice of btc down is because they are too volatile due to has lower price compare to bitcoin and circulating supply.

I don't think the relationship between Bitcoin and Altcoin is just a psychological effect, certainly the psychological factor has an effect as you mentioned when Bitcoin price drops it leads to fear and people start selling their coins, but it's not the only relationship.

The main link is that Bitcoin is like the dollar to Fiat, we can say that it is the reference price point for the entire market where any rise in Bitcoin price leads to a rise in Altcoin and vice versa, but this is in general and not always.

[Fivestar4everMVP]

There's no connection or link between them, it's just psychological effect, when bitcoin have huge declines people get wary that's why they sells their holdings, for this reason it affects people thinking it might be do the same to their other coins that's why they sold too. When this become domino effects, price down percentage of other coins especially new coins/token went almost twice or thrice of btc down is because they are too volatile due to has lower price compare to bitcoin and circulating supply.

I don't think the relationship between Bitcoin and Altcoin is just a psychological effect, certainly the psychological factor has an effect as you mentioned when Bitcoin price drops it leads to fear and people start selling their coins, but it's not the only relationship.

The main link is that Bitcoin is like the dollar to Fiat, we can say that it is the reference price point for the entire market where any rise in Bitcoin price leads to a rise in Altcoin and vice versa, but this is in general and not always.

You are right and I completely agree with you, it is wrong to believe that the connection between bitcoin and Altcoin is all based on investors psychology or presumptions.
Over the years, we have witnessed several cases where if the price of bitcoin drops, the price of Altcoins follow suit, this effect have nothing or very little to do with psychology, but rather, is more like a show of how much power bitcoin still have over the entire crypto market.

Like I think I've mentioned before In some of my comments on this forum, the power bitcoin still has over the entire crypto  market lies in it's dominance, as long as Bitcoin alone continue to have the highest dominance level or percentage in the market, even higher than that of Altcoins put together, it will continue to have some sort of influence on the price movement of Altcoins.

[bayu7adi]

Perhaps the most easily detected relationship is the existence of BTC which is the main instrument for large investors... yes their measure is BTC as a representation of the entire cryptocurrency ecosystem... so, when investor interest in BTC is high, it means that their interest in cryptocurrency is also increasing... so that the entire ecosystem in cryptocurrency including altcoins will also be affected by Bitcoin price fluctuations...

Just my personal opinion, CMIIW

[Hisbullah]

Perhaps the most easily detected relationship is the existence of BTC which is the main instrument for large investors... yes their measure is BTC as a representation of the entire cryptocurrency ecosystem... so, when investor interest in BTC is high, it means that their interest in cryptocurrency is also increasing... so that the entire ecosystem in cryptocurrency including altcoins will also be affected by Bitcoin price fluctuations...

Just my personal opinion, CMIIW

Interest in bitcoin will be high in demand and the price of bitcoin will rise because Bitcoin supply is limited. Bitcoin is the main instrument because as a pioneer and king of Crypto, of course it will affect Altcoins. Of course when we see high bitcoin demand, prices will rise. And when there is bad news, we will see the price down.

[Azharul]

I think that you could be created an excellent comment in your post. We know that bitcoin is one of the best valuable crypto in cryptocurrency world. It’s popularity will increase in all over the world.  We also know that when bitcoin price will be high level, than others crypto will be high gradually. But when bitcoin price will be down than others crypto currency will down. I think that any others crypto will depending in bitcoin. So i believe that newly altcoin will stay in same process.

[superman22]

From my previous years observation, bitcoin has some kind relationships with altcoins. Some Altcoins increases its as price as soon as bitcoins price falls. However, majority Altcoins price have fallen. However, the main problem is that we can not predict this way to hold Altcoins that the price will rise high if bitcoins fall. Even the Altcoins which as risen past years are now nearly no values. It is completely volatile and unpredicted to decide about its relationships in theoretically.

[Zed0X]

Looking at new tokens, at the day of listing there is always a rise in price (for most I've seen) no matter how BTC trends, for like some days or weeks as the case may be, the newly listed token likely trends on its own with demand and supply as the major determinant.. But with time, the BTC trend starts affecting it.. Proving it's Uniqueness.

Don't over think this. It's as simple as some people rush into try to take a share in the profit, there is no uniqueness in this. Those who chase the hype don't really care about BTC dominance or whatever trading signals since they are only focused on the short term gains.

[vegasus]

Usually for altcoins that have been listed on the market for a long time, their market conditions will match or follow the movement of Bitcoin prices. Where when BTC is dropping, the coins will immediately drop. And as is currently being experienced, BTC drops, and most altcoins drop.

However, this cycle may be slightly different from coins listed newly in the exchange. Especially for new altcoins, usually it will be very different, especially if it is a hype project, the price will suddenly explode even though the market conditions are dropping, it will be different itself and even increase by hundreds of percent. But once again, it is different, and it will be much more if we return to ourselves which one we want to choose.