The crypto market has been evolving a lot since last year, and since we witnessed the return of the bulls back in April, there have been various crypto-related predictions, most of them, bullish.
There’s been an increase in the number of exchanges, platforms, and trading pairs as well, and most crypto experts have said that the market has definitely matured this year.
BTC’s price is correlated with the altcoin market
But it seems that despite this evolution, the price of Bitcoin is still correlated to with the rise and fall of the entire crypto market.
Nik Patel who is known as the author of An Altcoin Trader’s Handbook said the following:
“Since January 2018, altcoins en masse have experienced 90%+ declines against BTC, and 95%+ declines against USD as a result of BTC itself losing ~85% of its value.”
When can Ethereum break away from Bitcoin?
In a recent analysis, Patel addresses when Ethereum, the second-largest altcoin, may break away from Bitcoin.
“Whilst ETH/USD’s short-term movements are heavily linked to Bitcoin, I do believe we will see somewhat of a decoupling if Bitcoin is to make another leg down and perhaps consolidate below the yearly high of $13,900 for at least a few weeks.”
According to the Daily Hodl, altcoins still have a long way to go in order to mature and have sustainable use cases and customers, and it seems that only after they’re able to achieve all this, speculators will genuinely be able to distinguish which one of the altcoins will thrive and survive.
At least, that's what I think, for what it's worth. They're coupled because the dominant question the market is struggling with is whether cryptos will disrupt finance and payments or whether they'll fizzle out.