Why is ALTCoin down when Bitcoin is down?

in hive-183397 •  5 months ago 

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Image collect Pixabay


Assalamu Alaikum

how are you all Hope everyone is doing well, We often notice that if Bitcoin goes down by -5%, then ALT Coins go down by -20% so quickly. Today we will know about those things. So without delay let's start.

Many of us use Stop Loss to avoid huge losses, when Bitcoin goes down, ALT Coins start going down.
And I don't know how ALT Coin started to go down. Almost all tokens have Bitcoin as Liquidity in Swap. For example, the price of a Bitcoin is $60K. Now the Liquidity amount is $100M. Now if Bitcoin is -5% Down, then $95M Liquidity will come down. ,
Then without any selling pressure but the liquidity will decrease and the price of the coin will start going down and those who used stop loss to avoid loss hit the stop loss and give a huge down by the moment.
This is one of the main reasons why ALT Coin is down.

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Image collect Pixabay


In addition, there are many other reasons, let's find out one reason!
We all have a question, despite the huge downfall, many times we see who is buying coins despite knowing the risk!
Basically it is also a coin Liquidity coin has its own fund to fix the price of that coin when there is a huge down.
Buying Coins Through Liquidity When at some point the liquidity starts to decrease and the price of the coin starts to decrease,

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Image collect Pixabay


Also, sometimes when we see that a coin has gone down a lot and is now preparing itself for a huge pump, then Future Trade is opened a lot Long, then Whales sell and dump a huge amount of coins to reverse the desired market, then the down itself actually happens. Buy the coins again,
So this is the end of today, everyone, be well, stay healthy, Allah-Hafez,

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Nice post friend, well it's not really a surprise as Bitcoin is the market mover of the cryptocurrency market, every other thing follows Bitcoin move.

Thanks bro, for Your Beautiful comment