Yes Dear Hives Friends and Community,
Those who have been active in the cryptocurrency market for a long time must have noticed one thing: when Bitcoin (BTC) drops slightly, altcoins, especially Hive, fall much more than it. Why is this difference? Why does Hive fall by 5% when BTC falls by 1%? Let's take a look.
আল-জুরবা গ্রাম, নাজরান, সৌদি আরব)। 
We know that BTC is the market driver:
Bitcoin is the first and largest cryptocurrency. It is a kind of “digital gold”, and the sentiment of the entire market depends a lot on the movement of Bitcoin. When Bitcoin rises, investors become confident and increase their investments in altcoins. When Bitcoin falls, everyone panics, and quickly gets out of risky altcoins.
Why does the price of altcoins fluctuate so much? I think there are three reasons!
1. Low Liquidity: Altcoins have a smaller market cap and trading volume than Bitcoin. As a result, the price fluctuates a lot with just a few orders from large investors.
2. Low Credibility: Unlike Bitcoin’s proven security and long-term position, Altcoins are still like a test project. As a result, investors sell them quickly when there is negative news or BTC drops.
3. Fear and Panic Selling: New investors usually invest more in Altcoins. They panic and sell when they see a slight drop in price, causing the price to fall further.
Why is Hive so volatile?
Hive is a strong blockchain project, but its market is still much smaller than Bitcoin. So if BTC falls by 1%, Hive could easily fall by 5-10%.
How has your experience been with Hive blog? Have the price fluctuations of Hive or other altcoins affected you? Let us know in the comments!