What is the negative correlation between Bitcoin and altcoins?

1 answers

• Dec 18, 2021 · 3 years ago
  At BYDFi, we've observed the negative correlation between Bitcoin and altcoins in the cryptocurrency market. When Bitcoin's price experiences a significant increase, altcoins often face a temporary decline as investors shift their focus to Bitcoin. This correlation can be attributed to Bitcoin's status as the most widely recognized and established cryptocurrency. As a result, many investors view Bitcoin as a safe haven asset and tend to move their funds into Bitcoin during periods of market uncertainty. However, it's worth noting that altcoins can also experience independent price movements based on their own unique fundamentals and developments. Therefore, it's essential to consider both the overall market trend and individual altcoin factors when analyzing their price correlations.
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