Bitcoin Garden Forum
Cryptocurrencies => Crypto Discussion => Topic started by: yousufatik on October 06, 2018, 10:43:28 AM
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A question arises when we think of the possibilities that the leading cryptocurrency bitcoin is related to other altcoins such as ETH, doge, litecoins and etc. Bitcoin price directly influence the other altcoins. but their relationship is not that predictable. One interesting thing to find out is whether ALTCOINS with the same state has a value relationship. It is when we analyze if there is a direct and indirect proportion between two altcoins that we compare especially, their market value. ICO's goal is to create a new Altcoin. This concept might affect the relationship of their value since, investors are fixed with their desired ICO, there would be a low investment to the coin offering because of the increasing number of ICO and altcoin. Investors are divided meaning to say that not all of the ICO would have the opportunity to succeed.
What might be the factor that affects the value of an altcoin?
What makes an altcoin value increase? as well as decreases?
How could we determine the relationship between altcoins? as well as their relationship to bitcoin?
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For information only:
Some study by a data scientist have tried to predict the relationship between Major Altcoins on Coinmarketcap with Bitcoin.
(https://github.com/dashee87/dashee87.github.io/raw/master/images/crypto_price_correlation.png)
There’s nothing too surprising (or novel) here. It’s well known that cryptos are heavily correlated- they tend to spike and crash collectively.
Source:
1. https://dashee87.github.io/data%20science/python/analysing-the-factors-that-influence-cryptocurrency-prices-with-cryptory/
2. https://dashee87.github.io/deep%20learning/python/predicting-cryptocurrency-prices-with-deep-learning/
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The logic went something like this:
* When BTC is crashing, alts crash too because people sell alts for bitcoins and then bitcoins for fiat.
* When BTC is rising rapidly / is in a bubble, alts go down, because everyone wants to put every penny into bitcoin.
* When BTC is trending or rising at a normal rate, alts go up, because people want to "diversify" / get bored with btc.
Does that sound right? What do you guys think?
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Bitcoin is the US dollar of cryptocurrencies,usually people buy Bitcoins and use that to buy other cryptocurrencies.When the price of Bitcoin goes up people dump altcoins to join the price pump and so altcoins usually drop in price for a while before rising because people will now have to spend more to buy alts if they don't buy within the time being
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Most of the new altcoins are created as forks of old coins, or the old project is cloned, but under a new shell or interpretation. It turns out the dependence of one currency on another. But tit's not always the case.
Some altcoins are created specifically to bring some benefit or value, and not associated with the main leaders - Bitcoin or ethereum.
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i know few things like when bitcoin stable altcoin will surely up .
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Bitcoin is the “original” cryptocurrency and ultimately responsible for the invention of blockchain technology. It basically was (and still is) a beta test of the technology, and it doesn’t actually work all that well. Many bitcoin evangelists now refer to it as “digital gold” or a “store of value” since it basically no longer works as a currency for most people. Can you imagine going to the market and paying $25 in fees and waiting 4 hours to pay for your groceries? Obviously that is not realistic.
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I think there's one answer to all your questions.
It seems to me that altcoins mostly follow Bitcoins behavior.
There was a big simultaneous fall and now I hope they will start rising soon.
But it also depends on people's investments.
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All crypto currencies are in one pool. Therefore, interaction is inevitable. People's tendency is to sell altcoins and switch to bitcoin, or vice versa, so they both affect each other. It's the people who value bitcoin and I think this relationship will continue for a long time.
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I believe that btc and altcoins are correlated with each other where in most cases either be it's bullish market or bearish, they have the same market trends. For me, btc is always the baseline in every market conditions and this is what I usually observed when I started to monitor the current market condition.
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There was a theory before that relate the price of BTC to Alcoins, but we all saw that this theory is not accurate 100% and in some cases, things happen totally in the other way. But as a base rule BTC price effect all coins because mainly any news about BTC most people consider it news for the whole crypto market and act accordingly.
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Of course they are connected each other especially for bitcoin. If bitcoin price is down then you can see a lot of altcoin price is down too. Cause Bitcoin is the father of all coin in this crypto world. People need to buy bitcoin first before they change into the other coin or join the ICO. And the altcoin price will up if they are going to launch the mainnet, hard fork, airdrop, their product is finish or something good news happened. And will be down when there is no development, stagnant, being hacked or other bad stuff. Its my opinion. Maybe you guys can add the other reason ^^
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They both impact each other rates.
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Most of the Altcoins follows the bitcoin behavior. :) :) :)
If bitcoin price is down then you can see a lot of altcoin price is down too. Cause Bitcoin is the father of all coin in this crypto world.
Bitcoin is the US dollar of cryptocurrencies, usually, people buy Bitcoins and use that to buy other cryptocurrencies. When the price of Bitcoin goes up people dump altcoins to join the price pump and so altcoins usually drop in price for a while before rising because people will now have to spend more to buy alts if they don't buy within the time being.
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Most of the Altcoins follows the bitcoin behavior. :) :) :)
If bitcoin price is down then you can see a lot of altcoin price is down too. Cause Bitcoin is the father of all coin in this crypto world.
Bitcoin is the US dollar of cryptocurrencies, usually, people buy Bitcoins and use that to buy other cryptocurrencies. When the price of Bitcoin goes up people dump altcoins to join the price pump and so altcoins usually drop in price for a while before rising because people will now have to spend more to buy alts if they don't buy within the time being.
I agree with you. Bitcoin is the king of every coin.
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The logic went something like this:
* When BTC is crashing, alts crash too because people sell alts for bitcoins and then bitcoins for fiat.
* When BTC is rising rapidly / is in a bubble, alts go down, because everyone wants to put every penny into bitcoin.
* When BTC is trending or rising at a normal rate, alts go up, because people want to "diversify" / get bored with btc.
Does that sound right? What do you guys think?
Yes i really agree with you. I think the market always like that. And the last because Bitcoin is the Pioneer in this crypto world. So it would looks like the safe haven