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Title: How much do you think altcoin bubble bursts are affecting bitcoin price? Post by: BrewMaster on February 05, 2018, 07:47:34 AM we already know there is a tight relationship between bitcoin price and altcoin prices that whenever bitcoin has a drop altcoins get dumped harder.
but what about the opposite? meaning as altcoins bubbles are bursting hard and people want an exit back to fiat they go through bitcoin and that (at the very least) increases the sell pressure on bitcoin and drops the price more. many of the altcoins don't have the fiat markets for people to cash out and also others may even choose bitcoin as a way to exit. i saw this topic which made me think of this: https://bitcointalk.org/index.php?topic=2883297.0 Title: Re: How much do you think altcoin bubble bursts are affecting bitcoin price? Post by: Denker on February 05, 2018, 08:20:07 AM we already know there is a tight relationship between bitcoin price and altcoin prices that whenever bitcoin has a drop altcoins get dumped harder. but what about the opposite? meaning as altcoins bubbles are bursting hard and people want an exit back to fiat they go through bitcoin and that (at the very least) increases the sell pressure on bitcoin and drops the price more. many of the altcoins don't have the fiat markets for people to cash out and also others may even choose bitcoin as a way to exit. i saw this topic which made me think of this: https://bitcointalk.org/index.php?topic=2883297.0 BTC is the king. Therefore it's market movement is dominant has an effect to all of the other coins. Altcoins' price movements having any influence on Bitcoin however isn't that much of a big deal imo. When an altcoin bubble bursts, well I could see some of that money flowing back into Bitcoin and pushing it's price up. That's it. Title: Re: How much do you think altcoin bubble bursts are affecting bitcoin price? Post by: penig on February 05, 2018, 08:54:14 AM In terms of demand, selling alts to bitcoin to exit should create a lot of buying in Bitcoin. Not all would exit to cash, so wouldn't expect alt coin sales to be driving Bitcoin down on this basis.
However the overriding director of price in this market isn't demand (and supply), its sentiment. Here a sell off of a few alts can influence sentiment of a few others and then the top few and Bitcoin. That or its outright manipulation, with automatic/bot trading driving the market. Watch for a sudden bounce unified across coins to see which is the dominant driver. |