The Relationship Inbetween Altcoins and Bitcoin (Elementary) – CryptoCurrency Facts
Last Updated – January Trio, 2018
Bitcoin’s price movement generally affects altcoin prices. The relationship isn’t always predictable, but there are some common trends.
Ter plain terms, here are some trends that have historically occurred (NOTE: each future event is an independent event and anything could toebijten, thesis are just trends to witness for, do your own research and make your own investment choices):
The main currency ter cryptocurrency markets is Bitcoin (fiat currency, ethereum, and Tether are also used, but Bitcoin is the primary currency). Given this, alts tend to fund Bitcoin runs and Bitcoin tends to fund altstem runs. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.
When Bitcoin goes up quickly, it will likely:
- Suppress or depress alts spil money flows into Bitcoin,
- Or, take alts along for the rail (generally true when a fresh wave of adoption is occurring).
When Bitcoin goes down quickly (for example after a very anticipated fork), it will likely:
- Depress alts spil money flows into fiat,
- Or, cause alts to boom (especially ter terms of BTC pairs, where you trade BTC for alts) spil money flows into alts.
When Bitcoin stagnates, it will likely:
- Cause alts to stagnate along with it spil people wait for a clear sign on the direction of the market,
- Or, cause alts to boom spil people look for comes back te altstem coins and attempt to get favorable trades ter terms of BTC pairs. <,–- This is what happened te December 2017 and January 2018 (this is what you are looking for te terms of alts, when BTC stagnated alts spotted epic growth).
To summarize, Bitcoin is the center of the crypto economy te many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to escape. This only becomes more true has people begin to “take gains” or “cut losses” from alts to buy Bitcoin when it goes on a run, and tend to “go to alts” or “go to fiat/USDT” when Bitcoin stagnates or drops.
This is a verzekeringspremie for people who see Bitcoin’s price closely, spil it can help tell you about what the entire market will do!
For example, if you see a BTC buy wall or sell wall beginning to pauze, there are some expected outcomes to be looking for (for example, you would be expecting altstem prices to go down quickly, and would know to buy or sell depending on your strategy).
The crypto space can be uncertain, so every little bit helps. If you can logically understand why your BTC is going up or down, and why your alts are going up or down, you can better implement any strategy and ease a little of the worry that can come with holding.