How are bitcoin and alt price charts connected? - page 2.

Gozie51

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Quote from: WinslowIII on May 16, 2019, 01:17:25 PM

Yes, but why do the alts go up and down in usd whenever bitcoin makes significant usd price moves? Wouldn't it make more sense for the coins to go up and down independantly? I mean, why does ethereum for example go up in usd at all when bitcoin goes up in usd? I seem to be missing something for this to make sense. I don't really follow the stock market, do all the biggest stocks tend to go up and down in unison also?

It is because of the technology that all of them get their project from which bitcoin happens to be the first. The blockchain technology binds all cryptocurrency together. I might be wrong but not totally wrong, but this is what I think in my opinion.

WinslowIII

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Quote from: webtricks on May 16, 2019, 12:36:15 PM

Quote from: WinslowIII on May 16, 2019, 10:33:00 AM

Now, when one of the major coins move they all move with it. My first question is how is this happening? when the demand for bitcoin goes up and the price goes up, why are pretty much the top 50 coins going up as well? Same with when the price goes down.

There is one important thing you are missing here.
When you see that all coins are either green or red, it is because you are viewing their value in 'USD' on CoinMarketCap.
Now when the price of Bitcoin rise, other coins usually remain stable or fall. But since the value of Bitcoin is increasing in terms of USD, value of alts also seem like increasing.
I give you example. Suppose Bitcoin is $8000 and Ethereum is 0.03 BTC or $240. Now Bitcoin increases by $300 and reaches $8300 and ETH falls to 0.029 because investors put their money out of ETH and put it in BTC. Now, in reality ETH price has fallen but when you view it on CoinMarketCap in 'USD' market, it will show ETH value in green too becuase in terms of USD, it has risen by $0.7.
So whenever Bitcoin goes up, just compare the percentage of rise with other alts. Usually the percentage of rise of other coins is lower than bitcoin.

Yes, but why do the alts go up and down in usd whenever bitcoin makes significant usd price moves? Wouldn't it make more sense for the coins to go up and down independantly? I mean, why does ethereum for example go up in usd at all when bitcoin goes up in usd? I seem to be missing something for this to make sense. I don't really follow the stock market, do all the biggest stocks tend to go up and down in unison also?

webtricks

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Quote from: WinslowIII on May 16, 2019, 10:33:00 AM

Now, when one of the major coins move they all move with it. My first question is how is this happening? when the demand for bitcoin goes up and the price goes up, why are pretty much the top 50 coins going up as well? Same with when the price goes down.

There is one important thing you are missing here.
When you see that all coins are either green or red, it is because you are viewing their value in 'USD' on CoinMarketCap.
Now when the price of Bitcoin rise, other coins usually remain stable or fall. But since the value of Bitcoin is increasing in terms of USD, value of alts also seem like increasing.
I give you example. Suppose Bitcoin is $8000 and Ethereum is 0.03 BTC or $240. Now Bitcoin increases by $300 and reaches $8300 and ETH falls to 0.029 because investors put their money out of ETH and put it in BTC. Now, in reality ETH price has fallen but when you view it on CoinMarketCap in 'USD' market, it will show ETH value in green too becuase in terms of USD, it has risen by $0.7.
So whenever Bitcoin goes up, just compare the percentage of rise with other alts. Usually the percentage of rise of other coins is lower than bitcoin.

WinslowIII

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Quote from: Adriano2010 on May 16, 2019, 10:51:19 AM

They are connected because most of altcoins are traded with bitcoin, and people ussually exchange bitcoin for altcoins or altcoin for bitcoin, and the price of altcoins goes down because now most altcoins was selled for bitcoin.

But what does this have to do with price moves that have all coins moving in concert at the same time?

Adriano2010

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They are connected because most of altcoins are traded with bitcoin, and people ussually exchange bitcoin for altcoins or altcoin for bitcoin, and the price of altcoins goes down because now most altcoins was selled for bitcoin.

fabiorem

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The whales do swaps between bitcoin and the major altcoins, that is, ethereum, litecoin, dash, monero and ripple. From these they do swaps with the other altcoins, and from these back to bitcoin.

The swaps are probably timed between the whales. In altcoin markets is very common to have pump and dump groups, which are very restricted (those from discord are scams). The money these groups make on the altcoin markets flows back to bitcoin, increasing its price while the alts go down. Then they repeat the process.

This can only work in bull markets, as in bear markets they would need to sell leased coins, or deal with derivatives, and only a few exchanges allows that.

Thats why Im not a fanatical maximalist. Although I only hold bitcoin and a few litecoin, Im not going to dismiss the altcoins for their use.

WinslowIII

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Before 2017, bitcoin had most of the cryptocap market share, something like 80-90%. When an alt pumped, bitcoin price typicially didn't budge. Now, when one of the major coins move they all move with it. My first question is how is this happening? when the demand for bitcoin goes up and the price goes up, why are pretty much the top 50 coins going up as well? Same with when the price goes down. I don't believe that people all of a sudden put money into all the coins at once, something else is going on maybe someone can explain?
The main point of concern I have is that if this continues, it's going to be hard to get bitcoin price into 6 figures because of all these stupid shitcoins that have to get dragged along with it.
How and why is this an all or nothing game? Thoughts?

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