It might not seem obvious to many, but it is no coincidence that when bitcoin falls in value so do other cryptocurrencies. The reason for this is quite simple and I will get to iti in a minute. However firstly, most cryptocurrencies are not uncorrelated i.e they all move up or down in value at the same time. Hence buying a cryptocurrency expecting it to move in the opposite direction to bitcoin is futile and you would be frankly wasting your time.
So why does this happen? The answer why the whole market trades down when bitcoin goes down is that most cryptocurrencies are traded against bitcoin. That’s no revelation and simple for most people to understand. So, if bitcoin loses buying power then sellers of other cryptocurrencies have no choice but to reduce their offer prices to find buyers. There is no way around this as bitcoin carries the trading volume compared to trading directly between non-bitcoin currencies.
So, I can’t emphasis enough about the importance to the crypto community that bitcoin does well for the future of the industry. Bitcoin’s success is everyone’s success in the crypto community. Peace
Follow me @cryptobebe
On most crypto stock u can buy ALT's only with BTC. These are normal declines and increases. I am not surprised with this behavior on the market.
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Ja das ist auch gut so denn der Markt richtet sich halt nach dem Bitcoin .
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Because Bitcoin is the leader of all cryptocurrencies. When leader is down, so 100% the others, too. Thanks for sharing.
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Just wondering what stops exchanges from allowing purchase of popular alt coins with fiat directly? (apart from their own very heavy bitcoin investments).
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The answer is most cryptocurency exchanges do not have access to banks to offer fiat services to clients. The reason for this is that the majority of banks do not accept cryptocurrency activity as they see it as risky.
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