Topic: Why do altcoins follow bitcoin? - page 13. (Read 1294 times)

Bitcoin is King of Crypto currency,the people will follow the king.Many altcion is created with the base of bitcoin.So altcoin is depend on the bitcoin in many manner.Bitcoin is the father of altcoin.We know son is like is father.This is the reason for when bitcoin price increase,it is reflect on altcoin.

Because it is the number one cryptocurrency here. Don't you see that many countries are following the USA? They have to follow their leader. However, in the future, I believe that most of the coins will become independent. They will no longer rely on bitcoin.

In any case, other altcoyins do not have the same popularity that Bitcoin has. In addition, Bitcoin is a Pioneer among the crypto currency and therefore it has important capabilities for a huge price.

Of course, they will follow bitcoin because, due to bitcoin crypto started that is why they want to follow the footsteps of bitcoin too, everybody nowadays love bitcoin so the demand is increasing that is why altcoins are doing everything for them to be like bitcoin.

that's really true and bitcoin is arguably the mother of altcoin. because the first coin born in the online world is just bitcoin. hence when the bitcoin price rises then the altcoin coin will also follow up and vice versa

This depends on the coin. Ethereum, for example, is not very related as its blockchain structure and network serves different functionalities than Bitcoin. Take Litecoin, a smaller and more efficient bitcoin made to solve bitcoin’s problems. Where bitcoin can be used, litecoin, in theory, can be used better therefore they are much more closely tied.

because bitcoin is the reference of all coins, maybe that's a brief explanation. but in fact it is, when bitcoin down altcoin follows it. and some other reasons like panic when they see bitcoin prices go down, they will sell their altcoins. with altcoin reasons going down if bitcoin prices go down.

Am I here the only person who came to explain hard topic instead of writing the same sh.... to only increase number of posts?
You realy think that your one sentence started with "i think" is not a SPAM here after atrocityx expaining exacly how it mentaly works in investors head and me explaining how it economicaly work.

They are economicaly conected. Its not only investors decission. As op wrote it happends too fast. Read my post. I explained how it economicaly works -  how without any investors decision price drops only by arbitrage bots and trading bots. Of cours this is indicator. Investors are doing their job after it. But they are sellig altcoin during bitcoin drop becouse they know it will drop too by their traiding experience. Not becouse bitcoin is the biggest and every has to fallow it. If all altcoins would be separated (traded only with fiat or at liest 90% volume in fiat pair) than it would be like OP wrote. Bitcoin drop would incrise btc/alt price.

 I think both of them is having some direct relationship as most of the time they dive together. I always connect them in a way such that when bitcoin is dropping then people are actually selling off the altcoins so that they can convert it to the bitcoin. But bitcoin market cap is really huge and thus when people are buying it or converting their altcoins into the bitcoin then doesn’t show up the hikes in BTC market immediately. This effect causes both the market to go down simultaneously. That’s my way of thinking of it, as I have always tried to find the answer for this one and gotten this after studying the market.

I see this is a common occurrence or frequent occurrence of altcoin price movements will follow bitcoin prices. and I think it's because bitcoin is an icon among other coin types so everyone who will make a purchase on altcoin will follow the bitcoin price movement.

Bitcoin is the oldest crypto currency, and also it is the most successful one with the highest potential and value, in addition, the Bitcoin's market is the biggest among crypto markets. So it is normal that altcoins follow Bitcoin and get influenced by its market and price.

You are all right but there is something that is main reason for that. All alts fallow bitcoin mainy couse economic reason. Its pure math. Let me explain

Now 90% of any altcoin volume is made in pair alt/btc and only 10% in fiat/alt.

When in 90% altcoin is traded by bitcoin than bitoin drop have to make price drop of altcoin. Why? Beacuse calculated price (btc value x altcoin value in bitcoins) is getting lower and lower beacuse btc value is getting lower. Big USD market is making it more independent from bitcoin move, becuse arbitrage bots buys cheep bitcoin, cheep alft from it and sells it on usd market. So if its big enought it can cover bitcoin drop making alt/btc price higher.  

Thats why etherum is more independent. It has big fiat market with great volume. But still not high enough.

How it looks like now (90% of altcoin volume in btc pair)?
1-Bitcoin price drop.
2-calculated altcoin price $ drop
3-arbitrage bots buys altcoins for btc and sell on usd market making drop there (because its not big enought and loosing with alt/btc market) - without pushing alt/btc price higher beacuse usd market is too small to do that.
4-people seeing price drop are selling to btc and then fiat or hold bitcoin what decrise alt/btc value what even more push price lower and make more investors sell.

Thats why its so mechanical. Bitcoin drops and in the same second altcoin price drops. Bitcoin Price $ drop->Arbitrage bots->alt price $ drop->stoplos/trading bots leaves >alt/btc&$ price drop->investors sells->alt/btc&$ price drop-> next stoplos etc. thats how it looks. When it would be coues by investors decisions only ("ok ill sell becouse bitcoin - main currency- is droping") it wont be that fast i think.

Thats why when bitcoin drop 30% altcoins mostly drop 50%

It will also be possible when altcoins will have their reallife massured value. That will work like bigger usd market.

Agreed   Money are pumped into cryptocurrencies mostly by bitcoin. So if any alt drops it only changes hands (someone who has bitcoin now has alt and someone who has alt now has bitcoin - amount of fiat pumped into market is still the same). When bitcoin drops it means that someone pulled money from whole market.

BTC is the most popular currency with the highest market volume.
Changes in market price are first reflected on btc before other coins.

Bitcoin is the king in crypto space at least until now, bitcoin is considered a pioneer in cryptocurrency and so far the value refer to USD is the highest among all crypto space. It is also the volume and liquidity is the biggest so it is very reasonable if all alt coins are following bitcoin circumstances.

are they in a network of the same blockchain or because the nature of the digital currency is the same up and down simultaneously and that determines the value is the capacity of the user? if it is true I think every coin does not have its own specific criteria.

You can clearly see that the market is fluctuating at bitcoin prices, bitcoin is the most valuable and influential digital currency. Bitcoin price is only $ 100 - $ 200, then the market immediately got a huge adjustment. So when you trade altcoin you always need to follow bitcoin prices to be able to profit the most safely.

Maybe it is about the balance. Bitcoin is the biggest player in the cryptocurrency. Maybe that's why. In every action there will be equal or opposite reaction.

The amounts of money involved were different though.. its harder to convince people to sell Ripple at fractions of a penny compared to 2.00... I do think it is slightly more position trade heavy in today's market simply because more people are gullible and whales are loading up the position trade manipulation because of the bear market to accumulate since thats the best you can really do now til we get out of this bearish trend.  

I do think trading charts are an example of human sentiment than they are of specific coins or news.. Certain percentages of people will react in grouped ways to certain types of stimulus.. There are people who will dump along with whales at the top, a certain percentage that will be opportunistic and get out early, a certain amount of avg traders with a stop loss, noob traders into capitulation, etc.  The avg trader since the December runup I think is much easier to get to extreme bag hold and sell in capitulation over follow more sound strategies, so its easier for position traders and whales to get what they want since larger percentages of people give them the result they desire.

It is just bassed on people sentiment, it is not because the price is sticked with bitcoin's pattern, that is just a theory.
Well, the price is only affected because of the price in BTC, but it does not affect much as many people think