No Need to Panic. The Drop in Altcoins Price is just an Adjusment with Bitcoin's Rise

in crypto •  7 years ago 

BTC has touched a remarkable $4400 price tag on Bitstamp. At the time of writing this, the price BTC is $4388. That is incredible by any means.

However, there's a side effect caused by BTC rise. The altcoins market is crashing. Or it seems to be crashing. But is it really crashing?

bitcoin image
Source: Pixabay

The answer is; NO! It is not crashing at all. The altcoins are adjusting to the dollar price of BTC. All BTC/Altcoin prices are going down in Satoshi value. But the USD value of most coins is stable.

Example of Steem

The only coins suffering a crash are the coins with most sellers and no buyers. Buyer support is necessary to maintain good value of a coin. If a coin is being sold by all and bought by less people, it is going to suffer a drop.

If your coins are going down (massively) in USD value, that is a concern. However, a small decrease is natural. What happens on the cryptocurrency exchanges is that everyone sees the Satoshi value going down. Naturally, everything turns red and that is when panic selling starts to happen.

The slight drop in USD value is sign of panic selling on seeing red blood on the market. If that panic selling becomes viral, a massive drop in USD value, and of course Satoshi value, can not be stopped.

Let me exemplify my statement with none other than Steem. The USD price of Steem has been around $1.20 for the best part of last few days. However, the Satoshi (BTC) price has been fluctuating from 25000 to 40000; each time valued approximately $1.20 in USD terms.

Right now, the Satoshi value of Steem is 28890. If BTC price in USD drops, Satoshi value of Steem will increase to adjust the dollar price. Vice versa is also true.

So, the Satoshi value, as shown in the exchanges, will keep fluctuating. There's no need to panic. The US Dollar value of your coins is more important at the moment. If the dollar value is stable or going up, you have good coins. There's no need to sell them.

Disclaimer

This post is based on my personal experience and understanding of the cryptocurrency market fluctuations and price adjustments. I don't claim to be an expert. Do your own research before any investments or decisions.

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I hope so. I think so. I really would love to see a rising tide lifts all boats type of situation. But this may mean bitcoin is the true leader. It is scalable. It is a store of value. For what reason are other cryptos needed?

The reason other cryptos are needed is the limited supply of Bitcoin as well as the diversity of coins and what they want to achieve. Every coin has some identity and technology behind it. Look at Steem for example.

I stopped buying Bitcoin @3500$.. and have been buying other cryptos based exactly on their potential to grow in terms of technology.. NEO, XRP, GAS.. even ETH and XMR! I do believe at least one of them will be the next Bitcoin in terms of potential growth🤞

NEO has good backing! And I must say your strategy is good.

Are you following BCH today?

You are right. I have some DIgibyte and go down since 0.00000690 to 0.00000325 but if the btc price go down it grow again.

DGB is recovering. At one point today, it was more than 50 % higher than the 24 hours earlier rate. If BTC goes back to $2200-2700, the Satoshi value (0.00000356 right now) will surely cross 0.00000700 easily. It is quite possible that it goes on a big bullish run and gets big buy orders. Price can shoot up any time.

That said, the coin is expected to recover so keep it there. If a BTC drop happens, it would be good time to sell in my opinion because you'll get good BTC ount

cheers

Thanks

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