I’m trying to understand how the crypto market works, and especially why the price of many alt coins like ada move along with BTC.
I’ve heard several explanations. But none of them really explain it fully/logically.
- Most read answer: BTC is the biggest asset of all crypto’s for many exchanges. Therefore all alts are measured with BTC. I do not fully understand this answer. How does this work? For example how was the price determined for 1 ada, back when it was launched? What is the role of the exchange here?
It somehow concerns me. If BTC drops, ada drops. If BTC pumps, ada pumps.
Does this mean if BTC turns out to be a unsustainable venture to mine, loses 80 of the value, ADA will also go down deeply?
This brings me the following question: can alts/ada exist without BTC?