Shaf
Verified member
It's a norm expected in the crypto markets that Bitcoin and altcoins are closely related in terms of price, with the relationship being an inverse one.
When the price of Bitcoin goes up, the price of altcoins goes down and vice versa. A lot has been said about this, and of course people wonder if there is ever a time that altcoins won't behave in this pattern. If you are caught in an altcoin when Bitcoin is in a downtrend, you would lose a significant amount of money this way.
The truth is that altcoins will most likely never decouple from Bitcoin. The largest trading volumes occur in the form of Bitcoin/altcoin pairs. People also trade altcoins mainly to accumulate more Satoshis, except for small traders who do it to get more stablecoins. In a bear market, people will even trade Bitcoin and altcoins more just to accumulate more Bitcoin.
Thus whenever Bitcoin price goes down, they would sell their altcoins for Bitcoin, bringing the prices down while they will sell Bitcoin for altcoins in an opposite situation.
When the price of Bitcoin goes up, the price of altcoins goes down and vice versa. A lot has been said about this, and of course people wonder if there is ever a time that altcoins won't behave in this pattern. If you are caught in an altcoin when Bitcoin is in a downtrend, you would lose a significant amount of money this way.
The truth is that altcoins will most likely never decouple from Bitcoin. The largest trading volumes occur in the form of Bitcoin/altcoin pairs. People also trade altcoins mainly to accumulate more Satoshis, except for small traders who do it to get more stablecoins. In a bear market, people will even trade Bitcoin and altcoins more just to accumulate more Bitcoin.
Thus whenever Bitcoin price goes down, they would sell their altcoins for Bitcoin, bringing the prices down while they will sell Bitcoin for altcoins in an opposite situation.