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While reading about what was happening in Kazakhstan, I came across this Reuters article. Basically, the bitcoin hashrate dropped after Kazakhstan cut internet after the deadly protests. The country was accounted in Aug. for 18% of global bitcoin output power.

It seems the price of Bitcoin often drops during various political events, per se.

However, why is the entire crypto market dropping as well? (i.e. including PoS assets)

In other words, what is the reason behind the strong correlation between Bitcoin and the other crypto-assets?

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  1. Bitcoin is the market leader for crypto-style assets - it is older, more established, its brand is more entrenched. For example: I can expect others to know about Bitcoin off the top of their head, or even say things like "other bitcoins" to people and expect them to understand (though some might be reasonably irritated).

  2. Many investors don't see a meaningful difference between the assets. They're all part of the same class of good which serves similar purposes: having online transactions, digital collectables. This doesn't mean there isn't a difference - it just means many people don't care or see the distinction.

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