Undoubtedly, the prices of Bitcoin and Ethereum are among the most important factors when it comes to determining whether other cryptocurrencies will rise or fall.
Although new cryptocurrencies are often independent of the two largest and most famous cryptocurrencies, prices of new coins are often a specific part of Bitcoin and Ethereum influence.
Ultimately, the price of Bitcoin affects all other cryptocurrencies, including Ethereum. It has been one for the past few months some independence from Ethereum demonstrated against Bitcoin, but Ether cannot escape Bitcoin’s influence either.
Bitcoin Impacts Impact of Ether and Market Makers on Bitcoin Price – How Should Crypto Investors Respond Now?
In order to deal with the subject of market makers and their influence on the prices of cryptocurrencies, the relationship between Bitcoin and Ethereum should also be taken into account.
The Bitcoin-Ether correlation has now fallen below 80%. This is the lowest value that has been measured in recent years.
Simply put, this means that ether is largely independent of bitcoin.
If the price of Bitcoin falls, it does not necessarily mean that Ether will also fall in value. Conversely, this also means that rising Bitcoin prices do not necessarily lead to rising Ether prices.
Investors should take this into account in the coming weeks and months.
Of course, the independence between Ether and Bitcoin can also affect other cryptocurrencies, including promising cryptocurrencies that are behind the two largest cryptocurrencies in terms of market capitalization.
— Kaiko (@KaikoData) May 15, 2023
Coin addresses can be better than Bitcoin and Ether
Successful coin launches show that new cryptocurrencies are doing well, although Bitcoin is currently struggling to break the resistance at $27,000.
The crypto exchange Coinbase has also examined the prices of Bitcoin and ether as well as the correlation + and currently sees benefits for Bitcoin.
So Bitcoin is worth buying. However, other cryptocurrencies do a better job, especially against Ether.
With Bitcoin went up about 60% in 2023while ether was only able to increase in price by almost 50%.
There will probably be some in the future as well Diversify between established and new cryptocurrencies be a good strategy for the crypto portfolio.
Right now, the new meme base Wall Street Memes in particular seems to be creating a sensation. Of course, this coin is just one example of many successful crypto presales in this country.
It seems that in 2023 there will be many cryptocurrencies whose prices could explode, even if Bitcoin is not currently a driving force in the crypto market.
However, it is also clear that Bitcoin prices will also rise in any case that other cryptocurrencies will pull up in price. Of course, certain independent coins, which may still have the potential of Wall Street memes, will especially benefit from this.
But market makers can spoil the fun for investors
In recent weeks and months, it has been suggested that Market makers strongly influence the prices of cryptocurrencies in directions, which most other investors don’t like. Great professional investors always seem to be on the other side of the other investors.
In the last few weeks there is always Bitcoin price breaks up towards 27,000 and above, but it has become very quiet about the two biggest cryptocurrencies. It seems that the rising prices of Bitcoin and Ethereum are being slowed down again and again by certain market players.
The big market makers are like an invisible hand, which strongly influences the prices of cryptocurrencies and harms other elements as the big players use their power in the market. In many cases it is Market makers are primarily companies that provide liquidity to the crypto market.
Market makers ensure that there is always enough demand for call/put options on the various crypto exchanges and that investors can buy or sell crypto currencies at any time.
— Blofin Academy (@Blofin_Academy) May 26, 2023
Market makers, for example, ensure that there is always a counterbalance for very large buy orders that put the respective cryptocurrency on sale.
Derivatives on Bitcoin and Co ensure liquidity, but also rising and falling prices
To maintain liquidity, market makers often use derivatives such as options. The derivatives enable the buyer to buy the underlying asset, such as Bitcoin and Ethereum, at a fixed price.
By offering the options, the market makers are often on the other side of the investors. When an investor buys a cryptocurrency, a market maker takes care of the sale. For example, if an investor wants to sell Bitcoin, a market maker buys the corresponding amount.
Cryptocurrency with potential 2023
Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.