BTC/ETH influence on altcoins - explanation?

ABCbits

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Quote from: bitmover on August 20, 2021, 12:44:09 PM

Additionally, all altcoins technology is based on bitcoin 's technology.

When bitcoin adoption grow, altcoins potential adoption grows as well. As bitcoin is more tested and developed altcoins also get benefited by that.

Market usually don't care about technology or the base. Besides, cryptocurrency which isn't forked from Bitcoin or Bitcoin Core source code usually have some major difference on technology.

Quote from: bitmover on August 20, 2021, 12:44:09 PM

On the other hand, as governments increase regulations on bitcoin , all the potential negative effects are also applied to altocins.

I agree, regulation for altcoin usually follow bitcoin regulation, unless there's explicit regulation for altcoin such as restriction for privacy-focused altcoin such as Monero.

mk4

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Quote from: bitmover on August 20, 2021, 12:44:09 PM

Additionally, all altcoins technology is based on bitcoin 's technology

When bitcoin adoption grow, altcoins potential adoption grows as well. As bitcoin is more tested and developed altcoins also get benefited by that.

I don't think so in this case. It's still a lot more due to market reasons than technological reasons. The same reason how Ethereum Classic(ETC) won't necessarily gain adoption if Ethereum(ETH) gains adoption, and how BCH and BSV won't necessarily gain adoption if BTC gains adoption.

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Quote from: mk4 on August 20, 2021, 12:23:25 PM

It's simply because a significant percentage of the trading pairs with good volumes are still the BTC/altcoin and ETH/altcoin trading pairs. Though we've been seeing growing trading volumes with stablecoins(USDT and USDC) since the past months, despite Tether(USDT) still being quite "controversial".

Additionally, all altcoins technology is based on bitcoin 's technology

When bitcoin adoption grow, altcoins potential adoption grows as well. As bitcoin is more tested and developed altcoins also get benefited by that.

On the other hand, as governments increase regulations on bitcoin , all the potential negative effects are also applied to altocins.

That is what correlation is about.

btcb3g1nn3r

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open binance, see spot ETH/USDT and ADA/USDT, see the ETH/USDT 1m chart and compare it with ADA/USDT chart, you'll see same kind of trend, only difference ADA/USDT has higher amplitude candles -> so what's the right explanation for this? Cheesy

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Quote from: btcb3g1nn3r on August 20, 2021, 11:40:37 AM

Is it really the buying/selling volume on BTC/ETH followed by same kind of actual buying/selling volume for a particular altcoin?

They have separate order books but I don't know what you consider as "actual" when you talk about trading volume since there are plenty of bots operated by traders to pump or dump a coin and token. There are also some exchanges alleged of involvement with fake trades.

mk4

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It's simply because a significant percentage of the trading pairs with good volumes are still the BTC/altcoin and ETH/altcoin trading pairs. Though we've been seeing growing trading volumes with stablecoins(USDT and USDC) since the past months, despite Tether(USDT) still being quite "controversial".

The Cryptovator

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When Bitcoin starts to move upward then we assume the market is bullish. So when we see an altcoin still hasn't pump with Bitcoin then start buying that coin which has been leading upward that altcoin too. That's how most altcoins start moving with the Bitcoin movement as well. But keep in mind sometimes altcoins do not follow the Bitcoin trend. It depends on the market situation and it wouldn't same on all the exchanges.

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Quote from: btcb3g1nn3r on August 20, 2021, 11:40:37 AM

Or the altcoin price is influenced by BTC or ETH buying / selling volume regardles if that particular altcoin is either bought or sold on the same trading platform?

Imo, I think it's more of this. Bitcoin has a market dominance of over 40% currently and that can quickly increase to 50 or 60% should the price keep rising, that level of influence means that an increase or decrease in the value of Bitcoin would have an impact on the general cryptocurrency market.
It doesn't need to happen on the same platform, traders just needs to b bullish about Bitcoin and that optimism could easily spread to other altcoins.

Bitcoin also being the first cryptocurrency means it has a lot of influence on the market.

btcb3g1nn3r

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Hi,

What would be the best / only explanation that when BTC or ETH price is moving the altcoins are following the same trend direction (based on 1m trading observation)?
Is it really the buying/selling volume on BTC/ETH followed by same kind of actual buying/selling volume for a particular altcoin? Or the altcoin price is influenced by BTC or ETH buying / selling volume regardles if that particular altcoin is either bought or sold on the same trading platform?

thanks

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