BTC sets the trend
Altcoins react with a multiplier>1
so during normal trading sessions
when BTC up, altcoins up faster
when BTC down, altcoins downfaster
at periods of extreme bullish sentiment, BTC may be stable while alts boost.
at periods of extreme bearish sentiment, BTC may be stable while alts get destroyed.
Topic: One quick question (Read 403 times)
How I understand it (take it with a grain of salt I am quite new) is:
generally speaking most altcoins are traded against BTC. Some you can buy with fiat like ETH, I think LTC too. Regardless hypothetically speaking if BTC is 1k dollars then goes to 2k dollars and you have an altcoin that was 10 cents but goes up to 25 cents in that same time. Your altcoin wont have gone up 2.5x in BTC value it will only go up the amount of BTC that it gained on. I dont know the exact % in that situation but I think you get the point.
If you are looking for a relationship with BTC to alts I would say its generally a negative correlation. BTC goes up, alts go down and alts go up BTC down. However, recently sometimes BTC has gone up, alts as well. This is the basis of the marketplace. It is irrational by nature and thus we cant really say for sure what is to happen. To conclude, both could up or both could go down at the same time. Or one could go up, other could go down. Anything can happen really, especially when a market is trending. This is how I understand it, I could be wrong though.
generally speaking most altcoins are traded against BTC. Some you can buy with fiat like ETH, I think LTC too. Regardless hypothetically speaking if BTC is 1k dollars then goes to 2k dollars and you have an altcoin that was 10 cents but goes up to 25 cents in that same time. Your altcoin wont have gone up 2.5x in BTC value it will only go up the amount of BTC that it gained on. I dont know the exact % in that situation but I think you get the point.
If you are looking for a relationship with BTC to alts I would say its generally a negative correlation. BTC goes up, alts go down and alts go up BTC down. However, recently sometimes BTC has gone up, alts as well. This is the basis of the marketplace. It is irrational by nature and thus we cant really say for sure what is to happen. To conclude, both could up or both could go down at the same time. Or one could go up, other could go down. Anything can happen really, especially when a market is trending. This is how I understand it, I could be wrong though.
If the coin has a USD or EU exchange then it will work on its own ecosystem. however when the price of btc spiked to around 2000$ the prices of almost all other alt coins rose. so while they may be separate i would still say that when the btc drops or rises the price of alt coins is affected.
So if btc value rises against dollar value, do altcoins rise with that value as well? Or are they less dependant on BTC and more on their own value?
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