Relation between BTC and the market / altcoins

[Henri9009]

Hi all!

I'm not sure that I understand everything (and I'd like to) about the relation between BTC and the rest of the market, and also about the ALT/BTC price fluctuation.

1. I understand that, if I have bought an ALT/BTC pair, when the price of BTC goes up, but the price of the ALT stays fundamentally the same, the ALT/BTC chart will adjust, and go down a bit. Normal: the BTC is worth more, but not the ALT.

My question: if the price of BTC goes down, but nobody sells that precise ALT (so the price of the ALT stays the same), the chart of the ALT/BTC would adjust and go up a little, right (I've never seen that, though)? I'm just following the opposite principle I just explained above.




2. Why when BTC goes down, all the market goes down? Is it simply because all the owners of the ALTs sell their coins? Or is there any other reason that I haven't understood?




Thanks a lot!

[fallenangel1789]

Hi all!
My question: if the price of BTC goes down, but nobody sells that precise ALT (so the price of the ALT stays the same), the chart of the ALT/BTC would adjust and go up a little, right (I've never seen that, though)? I'm just following the opposite principle I just explained above.

2. Why when BTC goes down, all the market goes down? Is it simply because all the owners of the ALTs sell their coins? Or is there any other reason that I haven't understood?

Hi. Yeah that's correct. If BTC dominance decreases slowly or alt dominance increases slowly, Altcoins usd value or BTC value rise. But there are almost 10K altcoins, You cannot expect a rise in all of them. But the sharp decrease in BTC value scares people and altcoins holders immediately sell their tokens and hold stable coins to accumulate cheaper.

[Evgenklm]

In simple words, you can see that on any exchange , ALTS is traded with bitcoin, so when bitcoin falls, its pair with ALTS also goes down, but do not forget about the panic mood in the market when bitcoin goes down, in general, it depends on many factors.

[KryptoBull]

Bitcoin is crypto KING and an object for investors to look at to determine the potential of the crypto market in the near future. Besides, Altcoins is also a tool for investors to find opportunities, I believe that ALTBTC has its own volatility trend but is still related to the volatility trend of BTCUSD. When the price of BTC falls, confidence in the market decreases and investors want to withdraw from the market. The selling pressure increased and the price of all cryptos also dropped.

[Limabd]

Bitcoin is a very good currency. Bitcoin is more prevalent in the crypto market. It is pretty clear to everyone how Bitcoin and Altcoin coins are traded. Whether Bitcoin goes up or down depends on a number of factors. And the fluctuations of altcoin depend on bitcoin. When Bitcoin goes down, many traders lose confidence and many move away from investing or doing business. That's why altcoin goes down.

[Senin]

This is not to say that when the price of bitcoin falls, then the holders of all altcoins immediately sell them proportionally, so they also fall in price. There is such a thing as the price dominance of bitcoin, which depends on the level of its capitalization, that is, the percentage of the invested capital in bitcoins compared to other cryptocurrencies. It is generally accepted that such a high percentage (now it is at the level of 45) allows Bitcoin to influence the prices of other cryptocurrencies.

[joluolouyt]

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[marcsymons]

2. Why when BTC goes down, all the market goes down? Is it simply because all the owners of the ALTs sell their coins? Or is there any other reason that I haven't understood?

Simply because Bitcoin is the most trusted and promising cryptocurrency for investment, even if it has no backup commodity, the people continue investing. This will result in most of the Altcoin holders choose to sell their assets and wait for the Bitcoin to recovers again and buy it at a lower price.

[Maynul96]

2. Why when BTC goes down, all the market goes down? Is it simply because all the owners of the ALTs sell their coins? Or is there any other reason that I haven't understood?




Thanks a lot!

When Suddenly Bitcoin Price Goes down then we are see a Big dumping on whole crypto currency market and that's normal. Bitcoin is King of Crypto currency and always whole Crypto market depend of Bitcoin Price. When BTC price is unstable then all Alt Coin price is unstable also all Altcoin price is Down. All altcoin price is too much down when some big Panic holder sell Their a lot amount of Altcoin.             

[Tejas Patel]

When ever BTC goes up all altcoins will go up they will follow BTC as if BTC is a king.

[Seerge]

When ever BTC goes up all altcoins will go up they will follow BTC as if BTC is a king.

Bitcoin is indeed king, And it is certain that Bitcoin has a big influence on the price of Altcoins. 
This is natural, because BTC is the first and best Cryptocurrency.

[Callisto]

Of course, the reason is that many altcoins are traded in tandem with bitcoin, and when bitcoin falls, the crypto community immediately has massive hysteria, emotions affect the trade whatever one may say, many immediately start to drain everything, especially hamsters along with fluctuations in the market. In any case, any trader always looks at the fluctuations of bitcoin when investing, and many are discouraged from entering the market with a falling bitcoin.

[alltalk]

2. Why when BTC goes down, all the market goes down? Is it simply because all the owners of the ALTs sell their coins? Or is there any other reason that I haven't understood?

Sure. In this situation, many altcoins holders prefer to sell their altcoins because they are afraid the prices of altcoins to drop more. Altcoins prices mostly depend on the trend of Bitcoin, it follows what's happening with Bitcoin. If the price of Bitcoin drops massively, then the prices of altcoins to drop severrely as well.

[John Graham]

While Bitcoin demonstrated a clear correlation (though weak) with the stock markets in previous years, this dropped off towards the end of 2020 and the correlation fell below 0.2 at the start of 2021. Since the start of this year, both Bitcoin and the S&P 500 have been on a strong uptrend as the U.S. economy climbs out of the pandemic, and both hit an all-time in the last six weeks. However, while BTC has doubled in value since the start of the year, the S&P 500 index has only improved by 8.5% over the same period.

The two markets have moved out of sync during this time, with Bitcoin experiencing multiple sudden burns upwards, while the S&P 500 barely moved. Meanwhile, Bitcoin has also been hit with sudden downward shocks, most notably after Elon Musk's tweet this week that Tesla would stop accepting Bitcoin. As a result, the realized correlation between the two markets has been on the downtick since December 2020, and fell below zero, back to negative, in March 2021. This is the first time it has been below 0 since January 2020.

This could indicate that Bitcoin is gradually decoupling from the stock market, and may instead be forming an inverse correlation with it (when stocks move in one direction, Bitcoin goes the other way). For this to be validated, Bitcoin would need to continue moving away from the S&P 500 in the coming months.

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[masterrex]

IMO, I think most of the time altcoins and the market movements were tied up with Bitcoin performance, but as I observe nowadays, it doesn't work as it is. Because in the recent Bitcoin price increase not all altcoins are gaining much traction unlike before, and one time also in the recent months, Bitcoin price was dip due to the China FUD, but some altcoins have gained much traction and price increases. so I can say base on my observation that not all the time Bitcoin and altcoins market relations are tied up sometimes it has gone wild and out of the Box.