The majority of altcoins are based on two characteristics. The first and most crucial are its fundamentals, potential, liquidity, trader mood toward the project, trading volume, and so on, while the second is Bitcoin’s performance. Unfortunately, the latter frequently renders the cryptocurrency movement completely irrelevant.
It is no secret that anytime the price of Bitcoin rises, all altcoins rise with it, and when the king falls in price, all altcoins must give up their enhanced value. As a result, even the most fundamentally sound currencies bow down to BTC.
Many traders are concerned about their portfolio’s decline in USD value, while others are unconcerned. Those that trade primarily against BTC on major exchanges, where the altcoin/BTC pair liquidity may appear to be greater than the identical altcoin/stablecoin combination, are unaffected by the situation.
Is there any impact of the US dollar on cryptocurrency?
It’s crucial to remember that diversifying your Bitcoin portfolio is far more essential than changing it to a fiat currency like the US dollar. USD does not affect BTC because the latter must be utilized on crypto exchanges.
The coin’s circumstances may be small in comparison to Bitcoin’s effect, which is partially correct. The ones with excellent fundamentals, on the other hand, are among the top gainers in the bullish zones. When the market is generally in correction mode, they also recover harder and faster than the rest.
Now comes the dilemma of how to describe such healthy coins to others. To do so, one must look at its fundamentals, historical bullish and bearish patterns, and social indicators about BTC and the broader market.
As a result, given the current situation, having more bitcoin is more essential than having more USD.