The fluctuations in the value of cryptocurrencies have always been a concern amongst the investor. Due to its volatile nature, it’s difficult to speculate where these digital currencies are headed. Making worldwide impact cryptocurrencies are still in their developing stage, and in the coming times, it can make a great impact allowing people to make huge profits in investing in cryptocurrency.
With increasing traders of Bitcoins, everyone is making huge profits trading in bitcoins, and nowadays, with the help of advanced automated software, even beginners can earn daily profits from it. If you are interested in trading in bitcoins, then visit the site and sign-up to enjoy all the benefits and profits by trading in cryptocurrencies.
Bitcoin is the oldest and most valuable cryptocurrency in the world offers lesser risk as compared to any altcoins luring most of the investors. Due to this, Bitcoins have slow and constant fluctuations in their value, while because of limited investors, the value of altcoins tends to fall faster than Bitcoins.
Page Contents
Reasons why the price of Altcoins Falling Faster Than Bitcoin
1. Altcoins have high Volatility than Bitcoins
img source: unsplash.com
All cryptocurrencies are volatile. It’s nearly impossible to predict when their value will rise or fall. Bitcoins being the largest cryptocurrency, is considered to be a stable cryptocurrency as compared to Altcoins and several other cryptocurrencies. A sudden change in the value of BTC affects other cryptocurrencies drastically, and this makes altcoins more volatile than bitcoins.
While you are still thinking of starting trading in bitcoins, several other traders have already earned enormous profits, but before trading in Bitcoins, ensure that the online trading platform is verified and can be trusted with your money and personal details. Go URL to read a detailed review on the trading platform that is legitimate enough to guarantee you daily profits from trading.
Looking at the present scenario, Bitcoins prices have fallen over the past few weeks and are the reason why altcoins are falling faster than Bitcoins. Sitting on the top of the leaderboard, Bitcoins can easily affect the values of altcoins in the crypto market. Even a single announcement against bitcoins from an expert or a crypto-influencer can lead to over-selling of Bitcoins and altcoins, thus making altcoins prices falling faster than bitcoins.
2. SEC’s refusal to approve Bitcoin ETFs
img source: unsplash.com
The increasing concern regarding market manipulation has made the U.S. Securities and Exchange Commission refuse all the ETF transactions related to BTC from several parties. This decision had a major impact on Bitcoins making investors sell their Bitcoins, and the prices dropped drastically. Moreover, it not only affected bitcoins but altcoins as well. Many cryptocurrencies recorded their lowest prices in a year.
By driving almost every altcoin in the crypto market, Bitcoins are still on the top of the leaderboard, having a lesser impact than altcoins. A decision made for bitcoins by the SEC made altcoins feel the heat as well. Due to this, altcoins are falling faster than Bitcoins, and investors feel too much risk to invest in altcoins. Most investors are sold off altcoins in exchange for Bitcoin being more stable than other cryptocurrencies.
3. Geopolitical Concerns
img source: edgegroup.com
Another potential reason why the value of altcoins falling faster than bitcoins is because of the geopolitical concerns affecting altcoins the most. This can be another reason why Bitcoin stands stronger in terms of value and shows better performance compared to other altcoins. Several countries are facing an economic crisis, and the value of their FIAT currency diminishes constantly.
For instance, the value of the Turkish currency is falling lately, and to save their assets from inflation, people have been switching over to bitcoins as an alternative means to store their money. BTC being superior to any cryptocurrencies can keep itself stable than other altcoins. That is why altcoins are falling faster than bitcoins.
4. Bitcoin has a larger matured community
img source: unsplash.com
Bitcoin has grown significantly since its inception, not only in value but also the Bitcoin community is the largest crypto community amongst any altcoins. Numerous serious investors have made long-term investments in Bitcoins and, in return, received huge profits from it. Because of their trusted investors, Bitcoins have been able to retain their value regardless of numerous concerns arising related to it.
On the contrary, apart from a few, most of the altcoins didn’t make a much greater impact in the crypto market. This is due to the limited number of investors and lack of miners to circulate the flow of transactions. Bitcoin being dominant in the crypto market. It attracts all the investors, and hence whenever there is any major change in the crypto market, the altcoins community of limited investors fear losing their money resulting in falling in prices of altcoins faster than bitcoins.
5. Less popularity than Bitcoins
img source: merehead.com
Bitcoin being on the bull run, all the big investors in the crypto market are into investing in BTC and a few other cryptocurrencies. Even the influencers are buying and promoting Bitcoins on their social platforms driving bitcoins to the top of the chart. With rising popularity, investors of Bitcoins have increased significantly. With a large community of investors, even if a group decides to sell their BTC, it will not affect its value.
The popularity of any altcoins is not as high as bitcoins, due to which there are only limited investors for these altcoins, and even a small fluctuation in the crypto market can lead these investors to move to other alternatives. This results in the value of altcoins falling faster than bitcoins.
Final Thoughts
There are several reasons why altcoins have not been able to make a difference in the crypto market, and a sudden fluctuation in the value of bitcoin leads to other altcoins. Bitcoins being a stable cryptocurrency due to its larger investors community, shows a slow and steady change in its value, whereas the value of altcoins tends to fall faster than bitcoins.
Regardless of the fact, bitcoin shows a slow change in its value, but with increasing concerns, the prices have tended to fall recently, and it is struggling just like any altcoins. Since cryptocurrencies have been designed to bring a change in the monetary system in the world, it is speculated that the value of bitcoins and other cryptocurrencies will rise again once the solution is found regarding the increasing concerns related to cryptocurrencies.
