Bitcoin price correlation with Ethereum and other Altcoins price
Is there a correlation between the price of Bitcoin, Ethereum and other Altcoins ? For example when Bitcoin's price is going up or down, is the price of other cryptocurrencies going in the same direction ?
Bitcoin is a dominant cryptocurrency by price and also by markey capitalization. Bitcoin's price has a quite high influence on altcoins' price. Because of technological improvement of some altcoins, the influence of Bitcoin is maybe not as big as it used to be, but is still strong.
Many altcoins are preferred over Bitcoin, because they are based on more energy efficient proof-of-stake consensus mechanism, that is allowing to reduce transaction fees and increase the number of transactions per second. The advantage of some altcoins also is, that they offer smart contract features, de-fi and other functions.
Bitcoin is the first generation cryptocurrency based on proof-of-work consensus mechanism, because of what is not considered to be eco friendly. It also have relatively high transactions fees and is able to process only a few transactions per second, what is decreasing its influence.
There is a correlation between the price of Bitcoin and altcoins. But when Bitcoin's price is going up or down, not the prices of all altcoins are going in the same direction.
Bitcoin is mostly used as a store of value. Cyptocurrencies like Ethereum, Solana, Cardano are better to use to make payments, because of transaction speed, transactions fees, smart contracts, DeFi, NFT and other features.
When Ethereum will be fully switched to proof of stake concept, it will probably decrease Bitcoin's influence.