Why does the entire crypto market seem to follow Bitcoin?
Do people see Bitcoin as something similar to the S&P 500? With the S&P 500 in stocks, I understand it’s one example of gauging the strength of the stock market on average, but why do people seem to treat cryptos the same way? As far as I know, Bitcoin isn’t any kind of multi-currency ETF. It has its own unique utility, and it’s not even adequate compared to the utilities of many other coins out there. It’s value is only driven by the way it’s supply is manipulated and the fact it was the first mainstream crypto more than a decade ago. My only conclusion is that the average investor in this asset class is so inexperienced and deluded by what calculates fundamental value (ie, supply and utility, ALONG WITH demand) that they presume the strength of all cryptocurrency valuations are represented by the coin with the highest market cap. So bottom line, how is SOLO moving down? Do people really look at Bitcoin’s price dropping and think “guess it’s time to sell some SOLO and miss out on some CORE airdrops while I’m at it.”?