Join 69,228 users and earn money for participation
read.cash is a platform where you could earn money (total earned by users so far: $ 436,841.68).
You could get tips for writing articles and comments, which are paid in Bitcoin Cash (BCH) cryptocurrency,
which can be spent on the Internet or converted to your local money.
Takes one minute, no documents required
The Correlation of Bitcoin and Altcoin's Price: Why Altcoins Follows Bitcoin.
We often wonder when Bitcoin's price is dropping, altcoin's price drop too. Usually, altcoins (other coin than Bitcoin), follow the price movement of Bitcoin in the market even though every coins have different developers, communities and use cases.
When Bitcoin is dumping, it's pulling along altcoins, and the worst part is altcoins tend to lose more value than with Bitcoin. And there lots reasons why this is happening. And in this article, I'm going to share some of this reasons.
It mean us, yes. If we have a coin in our wallet, we are the traders and investors.
And most of us doesn't only trade in one coin. We trade in different kinds of coins in the market.
When the price of BTC is going up, the price of altcoins are going down because the Liquidity of altcoins are transferred to BTC when they saw that the price of Bitcoin is going up and no one wants to miss it. That's why when a trader saw the positive price action of BTC, they are selling their altcoins just to buy more Bitcoins.
The same goes when Bitcoin is dumping. They know that when Bitcoin is going down, the chance of altcoin's price to drop is relatively high and that's when they sell it to a stablecoins like USDT, USDC and BUSD.
We know that most coins rely on how the price of BTC moves but we can notice that there are also coins that can pump hard when BTC is stable - and that's because of the use cases or fundamentals.
Each coins have different developers, projects and use cases. And when a developers of that coin announces a good fundamentals like being listed in a big exchange, adoptions or a huge events, the price of that coin can pump very hard even if BTC is just moving sideways.
The BTC.D means how much percentage of the total cryptocurrency market cap Bitcoin have.
When the Bitcoin Dominance is huge or rising, it means that the buying power is on the side of Bitcoin compared to altcoins. This also one reason why the price of altcoins are losing its value.
But, if the BTC.D is going down, it means that the buying power is on the side of altcoins making their prices to pump. Usually, when BTC.D is down, altcoins are rallying making them grown to more than +100% of their current prices.