Bitcoin vs the top 100coins/tokens. Why do they behave the same?

taiwww

sr. member

Activity: 588

Merit: 257

Quote from: pixelvault on June 24, 2018, 06:33:23 AM

Wondering why the top 100 coins/tokens, or even the top 200 behave exactly like bitcoin?
Is this just traders being blind and disregarding the other coins out of pure laziness?

I would like to here your opinions so i can learn about it.

Peace

Thats the total market effect, when it gets hampered then all the coins in the market get hampered as well. Now the coins beyond Top 100 doesnt get affected because they dont have that much market volume, or daily volume and the net effect remains uncertain to them. When it comes to the Top 10 then everything is reversed.
However this is not the effect of bitcoin which is always thought by many traders in the crypto space. Well, this can be understood with the current situation where bitcoin alone is standing up in the bull run while altcoins are not and thus its not about the bitcoin but about the whole market effect.

princebridge7

newbie

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because most Altoins are paired with Bitcoin, so if Bitcoin goes down then Altoins goes down.

and as well as his basic Ethereum token on the Ethereum network, when Ethereum rises the Ethereum token rises, and so does the opposite.

TrumpD

sr. member

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Bitcoin is the Mothercoin and its demand is higher than that of others, and that is why other coins are considered "Altcoins". Whrnit comes to trading, most often than not, tokens and altcoins are traded, so that bitcoins can be purchased. Thus making the purchasing power of bitcoin strong. Thus, when BTC "dances", others do as well, becuse most people want BTC. Until it reaches a stage where BTC is no longer as demand as it is now, due to other altcoins having strong value, then the market will not always react directly/sharply to the behavior to BTC. No doubt other coins will react, but not as serious as now. So the way to do this is to support other altcoins other which are of serious potential value, and help them grow to be strong.

Early2000sThrowback

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Quote from: pixelvault on June 24, 2018, 06:33:23 AM

Wondering why the top 100 coins/tokens, or even the top 200 behave exactly like bitcoin?
Is this just traders being blind and disregarding the other coins out of pure laziness?

I would like to here your opinions so i can learn about it.

Peace

The only one thing which describes this situation lies inside the economic process of cryptocurrencies. Almost all altcoins are bought using 2 main cryptocurrencies, Bitcoin or Ether, thus many assets are pegged against BTC or ETH, a when bitcoin goes down it takes all the coins down as well. Current situation on the market is just terrible because it leaves no choice for people with small amount of crypto to sell it and leave the market forever, but the best part when all the altocins are going down dramatically - you can buy them on low and make the profit once they gonna take their price positions back. That's why I recommend in the downtrend to invest your assets in different ICOs so you can make sure 5 out of 10 investments will make more than 5x,. Recently I have invested in a project which is called Cryptics , these guys have developed a platform which is backed by AI and it predicts the price of many cryptocurrency assets with high 70% accuracy rate.

Gwapoman

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Bitcoin have 40% market shares in the total marketcap of cryptocurrencies..with a big dominance in the market like this we would always see the same movements between the price of bitcoin and altcoins.
I think if exchanges starts accepting a fiat to altcoins trading it would help reduce bitcoin dominance and remove the corelations between the price of bitcoin and altcoins.

Damn3d

full member

Activity: 359

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Quote from: pixelvault on June 24, 2018, 06:33:23 AM

Wondering why the top 100 coins/tokens, or even the top 200 behave exactly like bitcoin?
Is this just traders being blind and disregarding the other coins out of pure laziness?

I would like to here your opinions so i can learn about it.

Peace

I would put it this way, bitcoin is like the indicator of overall market mood, and if it is falling, than overall market moving is directed down, and vice versa.

Early2000sThrowback

newbie

Activity: 20

Merit: 0

Quote from: pixelvault on June 24, 2018, 06:33:23 AM

Wondering why the top 100 coins/tokens, or even the top 200 behave exactly like bitcoin?
Is this just traders being blind and disregarding the other coins out of pure laziness?

I would like to here your opinions so i can learn about it.

Peace

I think that's more about underlying technology, rather than just a fact that new token was created. If you gonna look closely at every coin on the market, those coins solve different problems all across the industry and they have different underlying technologies and purpose. That's why those tokens are getting out on the market and become tradable assets. Moreover, they become tradable because when the company decides to run the ICO, they have to create a token which can be sold/bought, so they can maintain their inner ecosystem, so their product can function and feel well. Take for example a new project which is called Cryptics, I have invested in it recently. So, these guys have created an AI based platform which can easily make the price forecasts of different cryptocurrency assets with accuracy rate of 70%. They have created their own QRP token which will be used in their ecosystem, but in order to maintain it, they will get it listed on exchange.

boyshx

sr. member

Activity: 574

Merit: 251

Quote from: ABCbits on June 25, 2018, 04:12:11 PM

The problem is majority exchange uses BTC/altcoin trading pair while most cryptocurrency market price list uses fiat which means altcoin price always follow Bitcoin price.
That makes most altcoin price behave the same way, while the altcoin price in BTC don't change too much.

In this case, traders and exchanges should be blamed for supporting BTC/altcoin pairing rather than fiat/altcoin.

Perfect. This really makes sense as to why these coins behave in the similar manner whenever the BTC is falling or going up. The graphs for them generated are exactly the same one and looks like exact replica of each other. This has got to do with the volume that they receive from the same base that is BTC! The BTC market control the volume that is getting traded into these market. Once people halt the operation of the bTC trade then it automatically affects the operations of other altcoin pairs associated with the BTC too. Thus everything drops the same way as BTC. My opinion is goes the same way but I do think sometimes it also depends on individual approaches.

kevoh

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Quote from: ABCbits on June 25, 2018, 04:12:11 PM

The problem is majority exchange uses BTC/altcoin trading pair while most cryptocurrency market price list uses fiat which means altcoin price always follow Bitcoin price.
That makes most altcoin price behave the same way, while the altcoin price in BTC don't change too much.

In this case, traders and exchanges should be blamed for supporting BTC/altcoin pairing rather than fiat/altcoin.

Bitcoin has over 40% market dominance of all cryptocurrency which makes it easier to be used as a trading pair on any exchange. Why should we then blame the exchanges for supporting BTC/altcoin trade pair? Why should we favour fiat/altcoin pairing? Of what benefit is cryptocurrency if we keep on referring to Fiat usage?

neymarjunior50

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Bitcoins are in the top of the market, even still there are other coins which are able to sustain with it alongside. This can be due to the project it is offering. A good project means there will be investors. Doesn’t matter if the coin is old or fairly new in the market.

budismile

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Activity: 293

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You are very careful in analyzing Bitcoin, so it can conclude all coins follow Bitcoin's behavior. In this case Bitcoin will always be a center for Altcoin. which I know Altcoin will always follow the movement of bitcoin, although sometimes it can be slow and sometimes it can be fast. it all depends on the trend of the coin.

anhzaibro

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Quote from: pixelvault on June 24, 2018, 06:33:23 AM

Wondering why the top 100 coins/tokens, or even the top 200 behave exactly like bitcoin?
Is this just traders being blind and disregarding the other coins out of pure laziness?

I would like to here your opinions so i can learn about it.

Peace

The interest in these coins is very much but they are still mostly focused on BTC. The value of it is so large that it can change quickly and easily.

sufiasyl

newbie

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We all know bitcoin is the best digital crypto currency in the world. Bitcoins demand is too high that’s why bitcoins prices are also very high too. We can’t compare bitcoin with other coins because those coins are far away from bitcoin.

Voidcrafter

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There is a simple bitcoin-Altcoin-bitcoin-Fiat scheme. As you can see, bitcoin dominates in all cases of communication with altcoins. When buying altcoins, for bitcoins. When selling altcoins in bitcoins. And exchange Bitcoins for Fiat. In this chain, all currencies depend on bitcoin. Bitcoin falls, all fall with him. He's growing up, altcoins rise.

albantani

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Activity: 134

Merit: 1

Quote from: pixelvault on June 24, 2018, 06:33:23 AM

Wondering why the top 100 coins/tokens, or even the top 200 behave exactly like bitcoin?
Is this just traders being blind and disregarding the other coins out of pure laziness?

I would like to here your opinions so i can learn about it.

Peace

All the coins come from Bitcoin, so it's normal when the other coins follow Bitcoin. likened to Bitcoin is like the state government and altcoin is a company that stood in the country, then the company is obliged to follow the existing rules in the country.
another example, when the US dollar currency the benchmark currency of another country.
Essentially, everyone has to lead, as well as bitcoin and altcoin

fiulpro

hero member

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Merit: 830

Have answered the same question before will try to elaborate again.
First of all Bitcoins and all other tokens depends upon the same factors, the economy how they loose investors during the festive season, how the whole economy of a country influence it and how its banned in some parts but allowed in others.
All these influence it and makes the graph to be roughly the same.
This way we can get why they behave same more or so .

shackleford

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Activity: 281

Merit: 100

Quote from: ABCbits on June 25, 2018, 04:12:11 PM

The problem is majority exchange uses BTC/altcoin trading pair while most cryptocurrency market price list uses fiat which means altcoin price always follow Bitcoin price.
That makes most altcoin price behave the same way, while the altcoin price in BTC don't change too much.

In this case, traders and exchanges should be blamed for supporting BTC/altcoin pairing rather than fiat/altcoin.

I fully agree with your point of view. Indeed, all exchanges are traded in a pair, BTC\altcoin for this reason, to withdraw money to Fiat from altcoins, they must transfer in bitcoin, and then bitcoin to Fiat + commissions everywhere. Conclusion, today altcoins are very dependent on bitcoin, because it is the most common among all cryptocoins, and it directly affects the price of all coins and their graphics

xmGx

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everything is traded to btc hence everything is measured in btc. We are waiting for a new rally in which bitcoin will return its greatness Grin

BrewMaster

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There is trouble abrewing

being in top ## has nothing to do with it be it top 100 or top 200. in fact there is a nice exception to it which may clarify the answer to. the exception is that whenever that altcoin (it can be #1 altcoin or #2000) is getting pumped (if it is during its pump) nothing can stop it. so for example when bitcoin was dropping the other day it may have seemed that all the altcoins are following it but if you looked closely you could have found at least 5 others that are rising (aka getting pumped).

now the reason for following bitcoin down during its drops is that people use altcoins for pump and dumps only so whenever bitcoin is going down they will always pull their money out of altcoins to come join the bitcoin movement and benefit from the bitcoin market.
altcoins always shine when bitcoin is stable because there is no profit to be made from a stable market so they go to altcoins and pump them to make profit.

dothebeats

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Cashback 15%

Since most altcoins are paired with BTC, the prices also follow what's the current price of bitcoin if the coin hasn't moved much. Although coins still move independently according to their current market conditions, the prices they follow still is in bitcoin. What I notice as well is that most altcoins, especially the big ones, always follow the trend of bitcoin no matter the season is, with some exceptions to a few breakouts happening when bitcoin is in a slump. If altcoins are paired to USD, see how the graphs change drastically and form a new picture.

Topic: Bitcoin vs the top 100coins/tokens. Why do they behave the same? (Read 246 times)