Followness of Altcoins in the Dominance of Bitcoin: A Phase Analysis
Open accessAbstract
Due to the transparency, simplicity, and blockchain system, cryptocurrencies gained popularity in the modern world. This led to more use of cryptocurrencies for speculation and investment rather than a medium of exchange. It is crucial to analyse the nature of the crypto market before investing in such currencies. With this intention, the paper tried to know the extent of following (Followness) of altcoins to the bitcoin in the different dominance phases like High Dominance, Low Dominance, and Moderate Dominance. For this purpose, daily closing prices of the Bitcoin and five major altcoins (Ethereum, Litecoin, Namecoin, Doge, and Ripple) are collected for the last five years and analyse the relationship between bitcoin and altcoins. Pearson's correlation coefficient test is used to know the direction of the relationship, and Vector Error Correction Model is used to see the extent of the relation. In general, the empirical result of the study showed cointegration between bitcoin and Altcoin. It also depicted that Altcoin showed a high level of followness in the moderate dominance phase and low followness in the low dominance phase. The study developed a price estimation equation to predict the price of altcoins depending upon the price of bitcoin and its dominance in the crypto market. This paper concludes that the dominance of Bitcoin also has a significant role in the price movement of altcoins.
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Bitcoin's dominant position often drives broader market trends, creating a strong correlation between its price movements and those of other cryptocurrencies.
“This assumption is challenging in interconnected cryptocurrency markets, where Bitcoin's dominant position often drives broader market trends, creating a strong correlation between its price movements and those of other cryptocurrencies (Kulal, 2021).”
From Estimating the Impact of the Bitcoin Halving on Its Price Using Synthetic Control (2025) · cites this paper as Kulal, 2021
The Abstract (page not provided) reports cointegration between Bitcoin and five studied altcoins and concludes that Bitcoin's dominance has a significant role in their price movements. But it finds high followness in the moderate-dominance phase and low followness in the low-dominance phase, so it does not support an unqualified strong correlation across cryptocurrencies or market conditions. (LLM, conf=0.86)
Experimental — accuracy not yet measuredBitcoin's halving events can influence investor sentiment and trading behavior across the entire market, potentially inducing spillover effects that may alter the trajectories of untreated cryptocurrencies.
“Bitcoin's halving events can influence investor sentiment and trading behavior across the entire market, potentially inducing spillover effects that may alter the trajectories of supposedly 'untreated' cryptocurrencies.”
From Estimating the Impact of the Bitcoin Halving on Its Price Using Synthetic Control (2025) · cites this paper as Kulal, 2021
The Abstract (page unavailable) reports that Bitcoin’s dominance plays a significant role in the price movements of five studied altcoins, supporting a general link between Bitcoin and altcoin trajectories. It does not address halving events, investor sentiment, trading behavior, or spillovers to supposedly untreated cryptocurrencies; a search for “halving” found no relevant passage. (LLM, conf=0.78)
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Estimating the Impact of the Bitcoin Halving on Its Price Using Synthetic Control
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Аналіз показників домінації на криптовалютному ринку
Ганусич, В. О. (2025) · Проблеми сучасних трансформацій Серія економіка та управління · doi:10.54929/2786-5738-2025-20-08-02
- Authors
- Kulal, A.
- Affiliations
- Mangalore University (IN)
- Corresponding author
- Kulal, Abhinandan
- ORCID
- Kulal, Abhinandan
- Venue
- Macro Management & Public Policies
- Publisher
- Synergy Publishing Pte. Ltd.
- Published
- 2021-09-07
- Volume
- 3
- Issue
- 3
- Pages
- 10-18
- ISSN
- 2661-3360 (ISSN-L)
- OpenAlex
- W3197947396
- Cited by
- 10
- References
- 35
- Citations by year
- 2025: 2 · 2024: 2 · 2023: 5 · 2022: 1
- FWCI
- 1.53
- Type
- journal article
- Language
- en
- Open access
- diamond
- doi.org
- Licence
- Locations
- Macro Management & Public Policies (publishedVersion, cc-by-nc)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Market Dynamics and Volatility
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Risk and Volatility Modeling
- Physical Sciences › Computer Science › Information Systems › Blockchain Technology Applications and Security
- Keywords
- Bitcoin, altcoins, cryptocurrency market, market dominance, cointegration, price forecasting, Ethereum, Litecoin, Dogecoin, ripples
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