Bitcoin Gold (CRYPTO: BTG) is trading lower by 6.2% to $31.17 during Wednesday's session. Shares of several altcoins are trading lower amid a drop in the price of Bitcoin.
Bitcoin often serves as a bellwether for the broader cryptocurrency market. When Bitcoin experiences a significant pullback after reaching a new all-time high, it can lead to negative sentiment across the entire market, causing other cryptocurrencies like Bitcoin Gold to also decline in value.
Some investors may also engage in speculative trading, hoping to profit from short-term price movements in cryptocurrencies like Bitcoin and Bitcoin Gold. As Bitcoin experiences a pullback after recently reaching a new all-time high, traders may sell off their positions in other cryptocurrencies to lock in profits or minimize losses, contributing to a decline in their prices.
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The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.