Bitcoin Thread

saor

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Feb 3, 2012
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The inverse relationship between bitcoin price and altcoin prices is hilarious sometimes.

BTC up, alts down.
BTC down, alts up.

Not always, but often enough. Never thought there'd be such consistent behavior across so many trading pairs for it to cause red across the board. I still don't really understand it, I mean - the explanation is often that people are selling alt positions to catch the BTC wave up but I dunno...again I find it hard to believe such a simple answer accounts for such widespread behavior. Or maybe a few big exits from alts to BTC is enough to trigger a chain selloff reaction.

Anyone have a better explanation for the correlation?
 

Swa

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The inverse relationship between bitcoin price and altcoin prices is hilarious sometimes.

BTC up, alts down.
BTC down, alts up.

Not always, but often enough. Never thought there'd be such consistent behavior across so many trading pairs for it to cause red across the board. I still don't really understand it, I mean - the explanation is often that people are selling alt positions to catch the BTC wave up but I dunno...again I find it hard to believe such a simple answer accounts for such widespread behavior. Or maybe a few big exits from alts to BTC is enough to trigger a chain selloff reaction.

Anyone have a better explanation for the correlation?
It's simply a case that with alts doing bad people are selling them into BTC as that's the main trading pair and vice versa. It's not really that anyone is chasing after BTC and selling alts to do so.
 

saor

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It's simply a case that with alts doing bad people are selling them into BTC as that's the main trading pair and vice versa. It's not really that anyone is chasing after BTC and selling alts to do so.
Yeah but that's a bit of a strange answer. Alts are doing bad because people are selling into BTC...there's no other way for them to be doing bad...so I don't really see how you've answered the question? The question still stands: Why do people sell alts across the board when BTC rises. I'd understand a handful of alt positions being exited, but it's often the case that the whole deck of altcoins have an inverse price relationship to bitcoin.

(To be clear I'm talking about altcoin/bitcoin trading pairs here.)
 
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Swa

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Yeah but that's a bit of a strange answer. Alts are doing bad because people are selling into BTC...there's no other way for them to be doing bad...so I don't really see how you've answered the question? The question still stands: Why do people sell alts across the board when BTC rises. I'd understand a handful of alt positions being exited, but it's often the case that the whole deck of altcoins have an inverse price relationship to bitcoin.

(To be clear I'm talking about altcoin/bitcoin trading pairs here.)
Well I have. You're viewing it as alts doing bad when BTC is doing good but it's really the other way around. People selling into BTC is the whole reason alts are doing bad and BTC doing good.
 

Temujin

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Guggenheim: BTC is worth $400k
Erm, you haven't got approval yet
Guggenheim: Oh right, BTC is only worth $20k
A few weeks later...
Congrats on your $500mil BTC purchase
Guggenheim: BTC is worth $600k
:ROFL:
 

Temujin

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Still ongoing... first hour he makes some interesting points re power
 

Jackes1754

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If you don't mind advising me in this gamble please. I have a R10,000 that I was waiting for the possible BTC price drop mid Feb to put that in there. Now I recon I am a month late, but I was thinking now, would it not be better to put that R10,000 small change into Ethereum?
 

JohnStarr

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May 21, 2018
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The inverse relationship between bitcoin price and altcoin prices is hilarious sometimes.

BTC up, alts down.
BTC down, alts up.

Not always, but often enough. Never thought there'd be such consistent behavior across so many trading pairs for it to cause red across the board. I still don't really understand it, I mean - the explanation is often that people are selling alt positions to catch the BTC wave up but I dunno...again I find it hard to believe such a simple answer accounts for such widespread behavior. Or maybe a few big exits from alts to BTC is enough to trigger a chain selloff reaction.

Anyone have a better explanation for the correlation?
I have seen that too. I invest in XRP and it's low currently, but when BTC drops, it rises. There must be some correlation (that doesn't involve a group trying to raise the value artificially).
 

saor

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Well I have. You're viewing it as alts doing bad when BTC is doing good but it's really the other way around. People selling into BTC is the whole reason alts are doing bad and BTC doing good.
People exiting alt positions to buy bitcoin doesn't seem intuitively like it accounts for such a consistent mass migration out of alt positions. And just personally - I would lose money by exiting alt positions every time btc price increased...it doesn't make sense to exit a trade like that just to maybe catch some other wave up.

Dunno - I keep expecting a more convoluted answer, maybe one that involves trading bots thinking the optimal trade is to exit the alt position to scalp a few % off the BTC trade but still it seems so unlikely that all these alt positions are currently in a profitable trade that exiting the position immediately makes sense.
 

HavocXphere

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People exiting alt positions to buy bitcoin doesn't seem intuitively like it accounts for such a consistent mass migration out of alt positions. And just personally - I would lose money by exiting alt positions every time btc price increased...it doesn't make sense to exit a trade like that just to maybe catch some other wave up.

Dunno - I keep expecting a more convoluted answer, maybe one that involves trading bots thinking the optimal trade is to exit the alt position to scalp a few % off the BTC trade but still it seems so unlikely that all these alt positions are currently in a profitable trade that exiting the position immediately makes sense.
Same issue as standing in a queue / car lane and constantly switching to the one that goes faster. All that achieves is driving oneself insane

seems to be pretty universal too eg stock trading
 

Swa

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People exiting alt positions to buy bitcoin doesn't seem intuitively like it accounts for such a consistent mass migration out of alt positions. And just personally - I would lose money by exiting alt positions every time btc price increased...it doesn't make sense to exit a trade like that just to maybe catch some other wave up.

Dunno - I keep expecting a more convoluted answer, maybe one that involves trading bots thinking the optimal trade is to exit the alt position to scalp a few % off the BTC trade but still it seems so unlikely that all these alt positions are currently in a profitable trade that exiting the position immediately makes sense.
You're right it doesn't explain it. There are a lot of factors that cause the exodus out of alts and it just happens Bitcoin is the only way out.
 

Swa

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If you don't mind advising me in this gamble please. I have a R10,000 that I was waiting for the possible BTC price drop mid Feb to put that in there. Now I recon I am a month late, but I was thinking now, would it not be better to put that R10,000 small change into Ethereum?
Too late to the party. Go with *Doge :ROFL:
*Not seriously
 

Lefty309

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Apr 28, 2014
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126
If you don't mind advising me in this gamble please. I have a R10,000 that I was waiting for the possible BTC price drop mid Feb to put that in there. Now I recon I am a month late, but I was thinking now, would it not be better to put that R10,000 small change into Ethereum?
I would put that into Cardano, currently the 6th largest coin by market cap. Coinbase's listing is coming soon (largest exchange in America) and Goguen mainnet is an upcoming Cardano project set to release in Q2 of this year which will allow smart contracts to run on top of the Cardano blockchain. This should attract developers and investors and really boost the price. This coin has already done a 3x since the start of the year.

I am not a financial advisor, but this is what I would do. Always remember to do your own research.
 
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