The relationship between Altcoins and Bitcoin is not direct. If one altcoin's price increases that doesn't necessarily affect other altcoins or Bitcoin. BItcoin generally presents itself as the representative, being the first and at the top of the value chain.
Topic: Relationship between Altcoins and Bitcoin - page 3. (Read 255 times)
It is not always the same but back in the day (couple years ago) when bitcoin went up the altcoins went down because of obvious financial reasons of altcoin not losing dollar value but lose value against increasing bitcoin prices.
Moreover, last year during the huge bull run at late November- December the bitcoin price was going high, it went from 900 dollars to $20k in 6 months yet all other altcoins followed as well for some reason instead of dropping value, eth increased insanely and made bunch of miners happy for example. Yet today we again see if bitcoin goes up other altcoins go down, like the old days.
Moreover, last year during the huge bull run at late November- December the bitcoin price was going high, it went from 900 dollars to $20k in 6 months yet all other altcoins followed as well for some reason instead of dropping value, eth increased insanely and made bunch of miners happy for example. Yet today we again see if bitcoin goes up other altcoins go down, like the old days.
I think there many factor that affect altcoin price bad news and good news, and sometime if bitcoin price increase that also affect altcoin price.
The overall value of an altcoin depends most importantly on the premium place on the coin by the token. This to a large extent is dependent on the use case of the project and it's impact on the crypto space, demand and supply of the coin will determine it's price. If there is low demand for the coin, it therefore implies that there's not much premium placed on the project and as such the coin will be not be healthy in the market. Inversely, should there be high demand for the coin, it means there's huge premium placed on the project. It therefore means that the price will increase substantially overtime.
Furthermore, because the overall market is to a large extent influenced by the price movements of BTC, it therefore affects the prices of altcoins positively and adversely during its price swings. This is because a lot of alts are paired with BTC on exchanges in order to be able to trade them.
Furthermore, because the overall market is to a large extent influenced by the price movements of BTC, it therefore affects the prices of altcoins positively and adversely during its price swings. This is because a lot of alts are paired with BTC on exchanges in order to be able to trade them.
Well, everything is traded to Bitcoin on all exchanges, and only then on another Altcoin. The price of a coin is determined by its market demand and supply. Other factors, such as fame among the community and the receipt of dividends from it in a certain period of time, have little influence. Also, much depends on the developer on his belief in what he creates in the cryptocurrency world.
I believe that Bitcoin acts like a representative for altcoins. It's like what gives an impression to the cryptocurrency in general. So if people are positive in bitcoin, they are mostly positive in altcoins too.
A question arises when we think of the possibilities that the leading cryptocurrency bitcoin is related to other altcoins such as ETH, doge, litecoins and etc. Bitcoin price directly influence the other altcoins. but their relationship is not that predictable. One interesting thing to find out is whether ALTCOINS with the same state has a value relationship. It is when we analyze if there is a direct and indirect proportion between two altcoins that we compare especially, their market value. ICO's goal is to create a new Altcoin. This concept might affect the relationship of their value since, investors are fixed with their desired ICO, there would be a low investment to the coin offering because of the increasing number of ICO and altcoin. Investors are divided meaning to say that not all of the ICO would have the opportunity to succeed.
What might be the factor that affects the value of an altcoin?
What makes an altcoin value increase? as well as decreases?
How could we determine the relationship between altcoins? as well as their relationship to bitcoin?
What might be the factor that affects the value of an altcoin?
What makes an altcoin value increase? as well as decreases?
How could we determine the relationship between altcoins? as well as their relationship to bitcoin?
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