Bitcoin Forum

I want to understand it, do you know why?

the altcoin prices are based on bitcoin prices.. which are then based on fiat prices

EG
lets make up a crapcoin for this example..
when bitcoin was $1000,
1sh*t=0.001btc      .. thus worth $1

if bitcoin went to $950
1sh*t still=0.001btc    .. but now only 95cents

so they sell the sh*tcoin to get to bitcoin to then sell the bitcoin to get fiat. hoping to do it in time to get ~90-95cent.
then hope to buy more than 0.001btc if the price continues to crash below the ~$900-$950 they sold their 0.001 at.
and then buy more than 1sh*t coin while that crashes.. in the hope that when bitcoin goes back to $1000 and 1sh*t=0.001 again they will have more than 1sh*t to get more than a dollar.

however by just holding the 1sh*t coin and not selling.. they are at a double loss during the crash because others sell their sh*t coin making the btc<->sh*t less than 0.001 and then the dollar<->bitcoin less than $1000 . meaning while the crash is happening their 1sh*t may be worth far less than 90cents even if the bitcoin<->dollar was still over $900 .. so it doesnt pay to hoard altcoins

More thoughts?

what franky1 explained is right on the point, there is not much to add except two things it is not 100% of the time and it is mostly true about those coins that are being traded against bitcoin and fiat at the same time.

but there are many sh*tcoins that are only (barely) being traded with bitcoin alone and there is no USD market. these usually act on their own and based on those who are pumping them.

there are also some altcoins that are heavily manipulated and they don't drop at all because of the buy walls the whales put up.

Moderator is not wrong putting this thread in "speculation" category.
What is the whale wall?
I doubt that anyone understand the real reasons.

The same happens with gold and sliver, it just means that the trade from bitcoin to altcoin is a big market and controls a portion of the price through the market.