I think the two main reasons for this are:
1) Bitcoin is the flagship cryptocurrency in an emerging market. If Bitcoin tanks, it doesn't bode well for others.
2) The best way to get altcoins is via BTC. If the price of BTC/USD goes down and say PPC/BTC stays the same, PPC/USD has to go down too. In other words, if the ratio of BTC:ALT stays constant, then it really is the whole crypto market crashing/soaring, taking altcoins with it.
Topic: Question for bears who invest in altcoins (Read 1786 times)
You'll notice that when Bitcoin crashed, so did Litecoin and all the other altcoins (vs. USD), despite their success not being necessarily contingent to bitcoin's.
There seems to be this phenomenon that when one member of an asset class crashes, investors sell all other members of an asset class. It doesn't make much sense, but some people do that.
It would be like if someone sold all their palladium because paper silver and gold crashed.
There seems to be this phenomenon that when one member of an asset class crashes, investors sell all other members of an asset class. It doesn't make much sense, but some people do that.
It would be like if someone sold all their palladium because paper silver and gold crashed.
What are you guys doing with your altcoins right now? If you thought this was the BTC peak, would you get out of your altcoin positions too?
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