Topic: Why do altcoins follow bitcoin? - page 8. (Read 1328 times)

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

Of course, the entire crypto-currency market is very dependent on Bitcoin and the Price of each coin is tied to how Bitcoin feels on the exchanges.

When btc goes up, all coins follow him, when he goes down, all do the same, so it is a king, a real value that has shown impressive resilience to FUD in the past.

You can easily see the market in recent days is fluctuating continuously, bitcoin prices are constantly adjusting and cause prices of altcoin are constantly falling, so I think that at this point you Should be careful when trading, only a small fluctuation of the bitcoin price can also cause the price of altcoin drops very strongly.

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

The fact that people wanting to speculate within the altcoin market are forced to buy Bitcoin first provides a constant bullish flow for Bitcoin, because when the shitcoin you are buying doesn't do well, people typically go back to Bitcoin and hold it in there to regain loses, since anywhere else and you may be holding a bag all the way down to stagnation ville.

Believe it or not, there are some hidden gems which have their own rallies during Bitcoin bear markets, these are extremely hard to find. For instance, I expected XSN to pump due the hype that their TPoS solution would cause and it was a great hedge as my BTC count has gone up even if my USD count went down, and im interested in raising my BTC count up, not USD, for I know BTC will recover against USD eventually. So with a bit of research and a bit of luck you can still profit from altcoins during Bitcoin bear periods.

They follow bitcoin it is simply because most altcoins are in bitcoin's exchanger or market. When the price of bitcoin goes up the altcoins also therefor  when bitcoins are dumping they also does. But some altcoins are in ethereum or tether exchanges that's hwy they are not affected in bitcoin's status.

bitcoin is the largest digital currency, and most trusted for now. so, a decrease, or a high price increase will make a considerable influence on altcoin. besides, altcoin always has a backrest with bitcoin price, or ETH, so of course it will make a considerable effect.

TL:DR Simply put, alt gains aren't an indication of more money moving into the market (at least right now), gains are pumped and lost because money is simply being moved around from one position to the next and not indicative of growth.

This is a really complex question and its going to take a lot to answer...  

First of all, bitcoin's stability is the entire market..... imagine it as bitcoin being the trunk, ethereum is the larger branches.. and other altcoins are the leaves... Anytime the trunk isn't healthy the branches and leaves cannot flourish, and will quickly wilt or die.. but when bitcoin's trunk is really strong it creates a healthy cycle for the alts and branches to flourish.   The analogy doesn't answer the question though but it does explain how it operates..but the real question is why?   To me, the main reason this happens is not for fear or panic, but more for an opportunity.  People think of cryptocurrency as long-term investments,, which the market doesn't honor.  As you can see recently with alts pumping then pulling back as BTC needed some support, that simply no new money is coming into this space and is simply moving around.  For example.. look at Tron for its Mainnet or Verge for its lolpornhub announcement.. no new money came into this space for those events, money frankly just moved from one place to another.  Whales and smart money know when BTC is dropping to abandon alts not because they fear having them, but because they can capitalize on the capitulation of noobs and simply just pull their money away and wait for others that don't know whats going on to panic.  But hodling isn't the answer either, since usually when alts pump alot of the gains are often lost rotating from one place simply to another.  Imagine you have like a rotating face.. alts on one.. btc in another.. tether or USD in another.  Alts are completely out of position 2 out of 3 times.. and not only will they not gain, theyll lose to people leaving them to cause a position trade.   So the only way to really deal with this is to buy alts at the bottom of a BTC trend and sell them at the top of a BTC trend.. then either hold BTC to buy alts later or switch to tether and take advantage and double dip of staying in the right facing position.....

The next thing you're going to ask is why doesn't something like TRX/USDT disconnect.. the reason is it gets corrected by arbitrage algo bots.  If there is a way to make money with an unnatural gap selling TRX to USDT and selling USDT into BTC back into TRX, the unnatural gap will be closed.. so even in this instance USDT doesn't make any sense.. on top of that USDT is just an altcoin not proven to be backed up by anything so you'd STILL have to back into BTC or ETHER to cash out back into cash on your preferred exchange.

To be fair, I know it sucks, but its just the way it is.  The best way to deal with this is to do as everyone else does and move in and out of positions that will make you the most money... fundamentally I'm really bullish on a lot of alts, but if you're here to make money you have to play the smart game like everyone else.   People position trade and do whatever makes the most money.. until it becomes a more regulated market and the speculation becomes more real use cases, I would expect it to get worse before it gets better.

Why is it that the moment BTC starts to sway, the other coins follow suit. It would be hard for everyone to sell that much at the same time. It seems beyond just panic selling. They seemed to be directly linked. Inf-fact, BTC going down should increase and encourage altoins as they raise in value compared to BTC as it falls so why this uniform sell off? Something seems weird about that to me. Any real theories, or explanations?

There are many reasons for that, to begin with this is the market of cryptocurrencies and in order to buy most alts you need to first buy bitcoin, so if people are selling bitcoin then that means that less money is in the market of alts, also if you look at the market dominance of bitcoin it is almost 40%, while that is lower than in the past any movement of bitcoin influences the market greatly and alts cannot avoid being affected by it.

Is true money moves and it seems no new entry of money on any particular coin so i think maybe if to say new investor decide to embrace say ethereum at the time while bitcoin seem stagnant where it is then it means market capitalizations moves and it may even cause a change in power in position if its strong enough..Good point I think the whole thing is about market capitalizations