Correlation Alt's and Bitcoin


#1

How come Alt’s are able to follow Bitcoin when Bitcoin start to rise?

I know the basic rules:

Bitcoin move up fast = alts drop
Bitcoin move up slow = alts move up
Bitcoin move’s down = alts drop

Two days ago Bitcoin did an other nice pump. I noticed that all the alts started rising and almost the same time… I was wondering how it is possible that all alt’s at the same time can rise also and move up? How does the correlation works?


#2

I too have a hard time understanding. My thinking is that alts have a satoshi value therefore when btc rises so will the alts. But don’t forget also that alts are being bought and sold too at the same time. I think that’s the way it goes? Hopefully someone will pop along shortly to let us both know :rofl:


#3

Na, btc can move up fast with alts. A couple days back BTC went up like 8% and alts went crazy.

It was just during the bull run that when btc went up alts went down I think


#4

To answer your question simply, if there is excess money entering the market and being focused mostly towards bitcoin, as long as the alt coin holders don’t sell in mass, because their alt coins hold a satoshi value, they will naturally increase in Fiat price alongside bitcoin.

I’m assuming your question is geared towards Fiat price.


#5

I use Tradingview and follow around 8/10 alt-coins.

I’m trading to accumulate extra BTC… so I’m following the BTC pairs. So i saw also the rise in BTC price.

So the price of BTC went up in fiat.
But at the same time all the coins (I’m following) did rise also in BTC price… .

So my question about the correlation between BTC and alt’s was more about the price in Satochi…


#6

I think there are many reasons to this. My view is that when BTC rises it gives the market confidence to move into alt coins.

Also it could be the price of bitcoin rises because people buy bitcoin to buy alt coins. More demand on BTC = higher price.

Alt coins tend to move in larger percentages in relation to bitcoin both ways :chart_with_upwards_trend: :chart_with_downwards_trend: ,

Move into alt coins when BTC market dominance is high and scale back into BTC when market dominance is low.


#7

I think in the original question we are missing a serious contextual point. When you say up or down in value with regards to alts are you talking Satoshi or FIAT? When talking BTC I know it is FIAT, but when talking about alts this needs to be specified.