After a brief, couple day rally, altcoins have been selling off hard.
The price of steem was all the way up near $1.66 and is now trading in the low $1.40's.
This wouldn't be all that unusual regarding cryptocurrency volatility except that bitcoin is making new short term highs as I type.
Bitcoin just recently spiked up over $7,600.
Bitcoin continues to surge ahead while steem and the rest of the altcoin market is selling off... what gives?
Bitcoin surging is precisely the problem.
When the crypto rally began a few days back, everything went up as new money likely entered the space and short covering boosted prices.
However, when it became clear that much of the bitcoin rally had to do with the possible approval of a bitcoin ETF, money soon flowed out of altcoins and into bitcoin.
People want to ride the ETF momentum and make as much as the can on the coin that is likely to go up in the near term, which is bitcoin.
Therefore, the current strength in bitcoin is coming at the expense of every other coin.
Money is slaushing around from within the crypo space as opposed to new money coming in.
Bitcoin's dominance is now sitting north of 45%, the highest level since December of last year.
We saw this phenomenon several times in 2017 as well.
When bitcoin starts running up, the question always becomes; will it pull altcoins up with it or will it pull money out of altcoins?
Currently it appears to be the latter.
Last year we saw this happen on two different occasions surrounding hard forks of the bitcoin code.
The pain in the altcoin space was severe.
Hopefully we are not about to see something similar repeat this year.
Having bitcoin run up is great for the space as it is the one that attracts all the new money and gets talked about in the press, however, it's not so great when it crushes our beloved altcoins in the process.
Stay informed my friends.
Image Source:
https://steemkr.com/cryptocurrency/@aakashsinha/it-s-getting-worse-the-crypto-currency-blood-bath
Follow me: @jrcornel
That's a pretty sound summary. Any movement in Bitcoin is good for the market overall. I believe we'll ride BTC up to create some new value, then the alts are going to be looking so valuable vs BTC that the flows will reverse. This is my thoughts anyhow. Personally I've started allocating less to BTC and more into the alts on a weekly basis. May look bad at the moment, but when the trend changes, it's gonna look great! Thanks for the share!
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That could certainly happen. It happened last year. Bitcoin running should bring new money into the space which likely will ultimately help altcoins at some point as money flows from bitcoin to other projects when its run slows.
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This is exactly right - when BTC goes up and alts go down that is the best possible time to buy alts. BTC is the way that most of the money comes into the system, and the traders sell alts and into BTC before that happens causing alts to go down. Then after the money comes into BTC and the price is much higher, they trade back into alts causing a BTC consolidation and a rise in alts.
I have generally been selling over the course of 2018, but now I am a buyer of STEEM (and probably some other alts too)!
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my bulwark and gin are holding steady. masternodes 4 lyfe
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Ah yes, the microcap altcoins... some of those aren't getting hit as hard.
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also XPTX - staking like a beast too
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If BTC continues to Rally; Steem will not be far behind. 💰🤑💰
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If Bitcoin is moving then alt-coins will definitely move up sooner or later...BTC movement is the key, which is happening now... so, enjoy the ride and buy favourite alt's on dips....
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That strategy has certainly paid off before. Several times last year in fact.
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Very true!
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@jrcornel hello 👋 sir,,,,,,, That's right, altcoin's condition is very bad, all of us have not been waiting for that, I think bitcoin is responsible for all this, since 2018 February we all thought altcoin would give a good profit in June, but now July is going to end but now the market's condition is very bad, I think altcoin may come down further until bitcoin is stable, but I think 2018 last, 2019 first, ekbar altcoin us 2019 First of all, altcoin will benefit us ??? Must say that by commenting
Upvote comments follow,
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Bitcoin is still the best crypto around. Maybe in a few years there will be a competitor but not yet.
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This was a very informative blog about what’s been going on with the surge of bitcoin and how it’s been effecting Steem as well. I hope that we see strong growth in the future with Steem, as bitcoin is on the rise. I do realize this isn’t always the case though but I have high hopes for the steemit platform because of the ideas behind it. Thank you for sharing this info with us. Take care!
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I'd like to see steem move up a few places on the marketcap list, currently around 38th. LIke to see it in the top 20 coins.
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That would be great if it moved up there. I can see it getting there since there’s so many other sites and programs that are built on the block chain. Not to mention all the new users we’ve been getting. We’re a lot further than we were a year ago.
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Yep, though when steem first launched, it was a top 5 coin. We have fallen a long ways in that regard.
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I couldn't agree with you more. I just hope that when BTC truly starts to pump that it will usher in a true altseason.
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It may, especially if it brings in a bunch of outside money like it did at the end of 2017.
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Thanks! I was wondering about this... I dumped a couple of altcoins I didn't have a lot of faith in and put it back into BTC. My rule of thumb is to watch how LTC does against BTC to see which way the other alts will do. If LTC goes up along with BTC, the others usually follow.
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Good observation. The market pretty much seems to in two waves. There is bitcoin, and then everything else.
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I think people who have invested in crypto are still bit afraid to loose their money if it falls again. So, many are trying to have a short term gain. Resulting in dip again.
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That is some of it too. Sentiment is still pretty bad, takes a bit to reverse that.
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I think it will take more than just a bit.
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Buy on the dips is what one should do in cycling events such as this.
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@jrcornel as we have always seen after BTC pump instantly. then after that BTC shows ups and downs there only. and at that time Altcoins fall and BTC dominance increases. So we should not worry . by the way sir you covered great point..
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This is bad time.
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wow! thank you sir!
i wonder... my value on USD is the same,
but in btc its getting less so fast -.-
should i trade NEO - Back to BTC or should i leave it? what do you advise?
upvoted!
please make a prediction, win ripple and leave me a comment :)
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I can't really say what you should do, just stating what is likely going on currently in the market.
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i resteem ;)
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Altcoins are bound to go up
Have patience
Dont sell off cheap
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time to shopping for altcoins:)
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Well usually it's when btc pumps/dumps alts dump but then when btc is sideways alts pump. However in this case they didn't pump in the last 3 days when btc consolidated but dumped. Which is kind of new. But yea in theory you're right
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In the past a bitcoin bull run was often followed by an altcoin bull run. Perhaps it will repeat again. Though, while bitcoin is actually running, sometimes it is painful for the alts.
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I read your post and saw that I liked your post from other posts. Thank you
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I read your post and
Saw that I liked your post from
Other posts. Thank you
- akikur100
I'm a bot. I detect haiku.
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It doesn't really matter. The altcoins will catch up. Great chance to buy more alts.
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el mercado actualmente esta en un sube y baja esperemo todo se estabilce
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Anyone selling altcoins now is a fool. They are at or near the bottom. You should be buying now, not selling. Learn from your mistakes next time and don't hold coins all the way from the top! Good luck out there.
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Maybe. Unless they go to close to zero. There are many many projects that probably don't deserve even half the market cap that they currently enjoy. Still a lot of fluff in many of the altcoins.
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Agreed, but perfectly viable coins are suffering more than they should, as well.
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But who is to say what a coin should actually be worth? It's all speculation at this point.
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That's not necessarily a bad thing. It provides excellent buy in opportunities for all of us that aren't bitcoin crazy.
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Great job @jrcornel ! Upped and resteemed! Still hanging in there!😬😮👍
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That’s the first time I see steem deep under 20000 sats, the value is still 1.30 ish ... Can’t believe that when I jumped in Steem was at over 40000 and 4$ ...
Don’t feel we will see those numbers again soon ...
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It may take some time, or it may not. If they get SMTs launched and some marketing perhaps it moves quick. Or, if the entire crypto market rallies again end of the yer, perhaps it takes steem with it again.
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awesome blog mam...
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Thanks for the good explanation!
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I firmly believe new money is not going to Enter this space for a while, - a lot of people slate the idea but this correction since January was badly needed to make a healthy market. I do foresee a true panic stage before we go up but believe if the ETF news is positive we may avoid this. Anyway great write up my friend I am now following your work. Please check out my work and follow please
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What price levels would constitute a true panic stage to you?
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the stability is a big factor in price term for bitcoin now and alts bleeding like hell too much down in satoshies value
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Enter institutional mony into the market by Back doors - $BTC pump - #Fomo on $BTC after emotional investors entry $BTC correction coming- omg $BTC is crashing sell at loss , buy back alts after pump in #Fomo with proude, disbelief of holding after 20-25% profit sell all and take some sleep , after wake up you see ALTs are 5-10X pumped , shit man without care any loss Buy the fu*kn deep alts will rise more , tell your friends and family relationship to enter in market with hope , after your bought wall street Phycology chart started 😅 , after 5-6 months you will sell at 70-80% lost , also make some bad relationships, after your selling market will start to grow like previous , you will again enter in market & buy some ALTs . You will got 20-25% profit but you will hold for more profits, after 1-2 months your trades will become shit trade , again lost 50% #REKT ,
Okey, now I have to do some work ,
You will learn about Trading , full confident , you made some profits in Bullish market , wow my TA works very well I'm genius ,now full confident , you will earn some profits 2x, 3X after some times Trend will change but your mind are not changed yet, you are addicted for trading bcz you are genius , after 4-5 months you will lose your 70-80% profit , so sad man , lost all dreams ... Now you will believe that TA is not works , it's all about Whales , everything is depends on them , Trading is not for me & I'm going for searching a job ...😂
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Haha this all too true... well said.
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😂
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He's a smart guy.
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Yeah!
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ES UNA LOCURA DIARIA
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Altcoins are crushed because several reasons. See my analysis here: https://steemit.com/cryptocurrency/@rfka19a/3jvpam
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I think I have the gist of it figured out myself.
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Of course you do.
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Thanks for your great crypto market analysis @jrcornel, keep up the great work! 👏👍
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Sounds like a very good theory. We have definitely seen this before, specially between Bitcoin and Ether some time ago when they were inversely correlated.
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