because of the direction in which traders are moving, they move in USD market direction.
for markets like litecoin which are huge and listed on major exchanges with the LTC/USD market or genrally LTC/Fiat such as the big 3 Chinese exchanges which only have bitcoin and litecoin and no other altcoin, this thing happens. people inject fiat to buy so the price stays up in the USD or fiat market while it declines because of arbitrage trading in the ltc/btc market.
BTC > up in USD
LTC > wants to stay the same place in USD because of the strong buy support.
if LTC/BTC price stays the same > it becomes expensive because of bitcoin rise
=> people sell litecoin in BTC market so the price goes down there to stay in balance with the USD market of it.
for other markets it usually works the opposite way. since most people are interested in the ALT/BTC market and not so much in the ALT/USD market the price in USD declines and in BTC stays up.
but also most of the times any decline in any of these markets causes a panic sell that crashes the market in general because people only see the drop and don't think about why they just go on a frenzy dumping phase
for markets like litecoin which are huge and listed on major exchanges with the LTC/USD market or genrally LTC/Fiat such as the big 3 Chinese exchanges which only have bitcoin and litecoin and no other altcoin, this thing happens. people inject fiat to buy so the price stays up in the USD or fiat market while it declines because of arbitrage trading in the ltc/btc market.
BTC > up in USD
LTC > wants to stay the same place in USD because of the strong buy support.
if LTC/BTC price stays the same > it becomes expensive because of bitcoin rise
=> people sell litecoin in BTC market so the price goes down there to stay in balance with the USD market of it.
for other markets it usually works the opposite way. since most people are interested in the ALT/BTC market and not so much in the ALT/USD market the price in USD declines and in BTC stays up.
but also most of the times any decline in any of these markets causes a panic sell that crashes the market in general because people only see the drop and don't think about why they just go on a frenzy dumping phase
I see your point. Thanks that clears it up.
Makes sense why LTC is still stuck so very low. Bitcoin price is moon-ing.
That last part about the panic selling is just sad tho.
