Ethereum is tied to BTC not to Dollars

in ethereum •  7 years ago 

Today Bitcoin crashed from the 2900 USD range to almost 2600.

The interesting part of the crash is not in the Bitcoin, charts, but in Ethereum/Bitcoin charts:

Mon Jun 12 18:31:04 GMT+02:00 2017.jpg

There is a peak followed by a sudden price rectification. During this time people was doing arbitrage... Suddenly buying and short selling Ethereum.

But for Bitcoin the crash was different:
Mon Jun 12 18:40:55 GMT+02:00 2017.jpg

The explanation for this is simple.

When Bitcoin crashed, Ethereum remained tied to the USD for some time...

Then robots and arbiters took advantage of being able to buy and sell quickly ethereum...

... while and buying and selling quickly BTC/ETH and ETH/USD...

For ten minutes the price of Ethereum was dictated by the Ethereum/USD pair.

But now is tied to Bitcoin again.

When this flash market movements happen is interesting to see how coin pairs move.

I expect someday Ethereum will be tied to fiat currencies like USD or EURO, and not to BTC.

Why?

Because lots of tokens are minted using Ethereum, not Bitcon sidechains.

ethereum trading strategy cryptocurrencies bitcoin
7 years ago by

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      ·  7 years ago 

    What app are you using for doing trading? Do u trust poloniex or bittrex? I'm just trying to start traiding daily but don't know where to start!

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        ·  7 years ago 

      The App is Blockfolio. You cannot trade from there, just keep account of your positions.

      I tried kraken and poloniex. But not bittrex.
      I don't do day trading. I tried but it does not work for m. Margin trading either.

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          ·  7 years ago 

        Solid article. Interesting to see I'm not the only one that is thinking about this. Though prices might seam inflated for now I don't think they will look like this 2, 3 years from now. I was wondering if anyone of you uses: https://www.coincheckup.com The site lets you check all there is to know about the team, product, communication transparency, advisors and investment statistics on every crypto. Check: https://www.coincheckup.com/coins/Ethereum#analysis To see the: Ethereum Research report.

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