Why do altcoins rise when Bitcoin drops?

If you have been following the cryptocurrency market, you might have noticed by now that every time Bitcoin’s price goes down, alternative cryptocurrency prices (commonly called altcoins) follow . The opposite is equally true – when the price of bitcoin rallies, we expect altcoins to go up in price shortly after.

Sometimes you see Bitcoin drop when the altcoins rise. This is caused by investors pulling their money out of Bitcoin and rushing into rising altcoins . This wave can go back and forth over a short period of time.

Because Bitcoin remains the principal cryptocurrency, other major altcoins such as Litecoin do tend to follow its price trends . Litecoin’s creator, as well as other adherents, have referred to Litecoin as the silver to Bitcoin’s gold.