Bitcoin Forum

A guy once told me, altcoins generally do what bitcoin does, but to a larger extent.

So BTC goes up 10% --> Alts go up 20%
BTC goes down 10% --> Alts go down 20%

While there are some exceptions (ETH did not crash now, presumably because of the ETF rumour), during the last month I verified this.

I want to sell my BTC when I expect the next bull run to be over. But I do not want to cash out because that will lead to confiscation of the profits via taxation.
Someone told me to swap the profits for stablecoins. But stablecoins are currently under serious attack, and are at risk of getting depegged.

Is there any alternative to cashing out and paying enormous taxes? It makes no sense to swap 100k worth of BTC to an altcoin when we expect a BTC crash of 40%, when all other altcoins are likely to crash even harder.

I wish there was something that behaved conversely to the BTC price.

I don't think they'll be an altcoin where you have a high probability of it outperforming bitcoin on a bear market. You simply either convert to stablecoins or your local currency, or you can hedge your holdings by holding short positions on CEXs/DEXs.

The market is not that easy to predict. If it was so simple, everyone would have been a millionaire.
The coin that actually always rise in price when BTC decreases are stablecoins and the difference is minute in cents. There are some risk taking people that leverage the difference with leverage but the BTC moment is also never definite.
For every other alts, the general trend is they follow the BTC moment and as BTC decreases, they too would decrease. If you want to trade on the analytics and crest and trough, you might not have to differentiate between BTC or any other alts. But considering the lower cap of alts, they bring larger volatility.

not sure what you mean by stablecoin being depegged. they seem to be okay, especially the USDC and USDT, you could just be too anxious. but the value of USD could drop because of inflation so prices of stuff will surge. keeping your money in stablecoin is still best.

but it would be cool to see altcoins can be used to hedge when BTC is correcting. when you find one, you will be worried too if there is enough volume when you sell it. if you find ETH growing when BTC falls then it could be a good option.

Yes, many people believe that ETH ETF has a bigger chance to be approved after what happen with BTC ETF.
I think there will be no major issue with stablecoin such as USDT and USDC (on any chain) in this year, so swap the profits to stablecoin indeed a wise strategy if you believe the BTC will crash soon.

For the tax concern, it depends where you live now. Every country has different terms and policy regarding the crypto tax.

Converting to local currency, in my country, means 50% taxation on the profits + social taxes which equates to another 16k per year.
That would just eat up all profits.

I always considered getting into crypto a one way street. Going back to fiat immediately alerts the tax hawks, and soon even the police.
Instead of converting to fiat it may even be better to just take the losses of the bear market.

Whether you lose 60% of the ATH (cash out) to all sorts of taxes, or the market declines 60% in a bear market and you hodl, comes down to the same thing.
But if you withdraw 100k you have alerted the authorities, and if you take the losses of the bear market you don't.

It's such a shame that they confiscate your profits on every withdrawal. Stablecoins are not a safe haven. Just for now

There is no way to avoid taxation if you're going to ask me and that's what you have to accept. Whether you cash out through selling Bitcoin, stable coins or any other altcoins, they'll still going to go through with your local fiat currency and that's going to subject you for taxation and gains. I know that it's going to take a lot of money from the principal amount but that's how life is, they say that debt is tax free so I don't know if you can connect that with that.

This is true but as they said that experience is the best explanation, if you haven't experienced anyone before you might not know the true meaning of this because there is more to what he said to you.

There is Bitcoin season and there is altcoins season, Bitcoin market can pump for 2 weeks straight and it's possible that altcoins will remain stagnant and few will pump during that time, it's like that because everyone will be focus on the bitcoin market but as soon as the Bitcoin market is done, it will might do some corrections and then remain between some price but the fluctuations will not be that significant. This is when altcoins pickup and there moves is usually a fast and furious one, a coin can pump for 2 weeks straight and will not stop with 1000% and you will think it's stopping only for them to continue until market is stop by some news where it might do a heavy fall or correction for good coins, meme usually collapse after this kind of pumps.


The market don't crash unless there is something that happened but because of the volatility nature of Bitcoin, they fall harder than bitcoin. When Bitcoin was having a small market and liquidity, it use to do what altcoins are doing today but with time it grow to become more stabilize due to the liquidity surrounding it. It's either you stick to Bitcoin, altcoins or hold stablecoins, it's as simple as that.

Welp, I just laid down your options, and in the end, it's up to you which route you're picking — with each option having its own pros and cons.

But really — I'd probably just go BTC or ETH if I were you. Probably going to hard to get in and out of altcoins.

If I were in your position, I would divide this ,  half into Bitcoin and the other half into Ethereum. This is because, as we can observe currently, while bitcoin is experiencing a decline, ethereum is moving in the opposite direction. In the coming days or months, they might both see an upward trend. I wouldn't convert this to stablecoins because, although stable, these currencies can still lose buying power due to inflation. Additionally, the approval of a Bitcoin ETF and the upcoming Bitcoin halving are substantial reasons to hold onto Bitcoin.

It is not working like what you wish it for but like what the first answer you can always rely in Stable coin so your funds will not go down with bitcoin or any altcoins in your holding but also there is no chance of growing once the market fireback to upwward position so try to convince yourself to what is your true target then.

Actually there are instances you will find some alts going up despite btc price is down, such scenario usually occur base on certain events happening within the ecosystem of such alts.
If you look at Tia and Sei in the past few days, you will notice the price keeps surging regardless if btc price was down. There has been so many hype surrounding Tia because of the airdrops eligibility for stakers, for sei perhaps just normal hype,  so this type of scenario makes the price to keep going up while btc price is down.
Most alts follows the btc price movement but there are few who sometimes act differently.

This is a good question from the OP and I have been trying to be observant about this as well. But in my opinion, Ethereum didn't crash much this time and even outshined Bitcoin because of the Ethereum ETF that is next in line after the Bitcoin approval. This excitement is what is helping Ethereum to perform better as people believe that it will behave just like Bitcoin behaved some months ago due to the optimism and tension behind the ETF saga. However, I believe that this show of strength of Ethereum will subside over time and will even fall because it is due for another correction. Most times, Ethereum and Bitcoin move the same way even if the magnitude could vary. I expect that to fall in line again and the two continue as they usually are.

Now, about the reverse movement coins/tokens, well, I have tried to study most of them but they are not perfect in their inverse movement, but to some extent, I think that when Bitcoin relents SOL could later rise. This is not happening all the time but most times. In recent weeks, I discovered that PEOPLE and XAI are rebel tokens, especially PEOPLE, it is buying when most coins including Bitcoin are falling and do the opposite in the reverse manner. You might want to check this out as well.

It depends on you, we cannot predict the market and just so you know, Bitcoin is the king of cryptocurrencies, but when choosing an altcoin other than BTC, I will definitely buy ETH because it is the king of cryptocurrencies. You need to remember that if you just want to sell BTC then your prediction is that BTC will go down, but if you want to keep it This means your expectations for BTC will rise, don't be hasty, keep researching and HODL

Yes, there are altcoins that can perform as well as Bitcoin, but not all of them will be able to match Bitcoin's capabilities.

It is a fact that many altcoins consistently outperform Bitcoin both during their peak pumping seasons and during their peak dumps. However, the reality is that many of these altcoins mimic Bitcoin's actions, so when Bitcoin does not pump, many of them hardly pump, and when Bitcoin dumps, they always begin dumping right away. However, the market capitalization of numerous altcoins is the reason behind their arbitrary pumping and dumps.When a coin has a small market capitalization, a small amount of capital placed in it can cause it to pump, and a small amount of capital from the altcoins project might cause it to dump regardless. An example of this is Ethereum, which has a large market and rarely dumps like other altcoins.
 

It is very hard to time the market 100% correctly market trends are predicted based on TA and FA which can be wrong sometimes.

On the other hand, Those altcoins that use the Bitcoin network show you the same trends. in case of Bitcoin go up altcoin will also go up and if Bitcoin bounces back down altcoin will also bounce back. if you are only keeping an eye on those altcoins that use Bitcoin network you need to find them and invest in them. Altcoins work on pumping and dumping schemes but those altcoins that have strong use case is more beneficial.

You are too complicated because you can't achieve everything you want, you have to make sacrifices and calculate it carefully, it would be better, which one will make you more profitable, sell it and become fiat by having to pay high taxes, exchange it for altcoins which may experience a decline much bigger than the tax you have to pay, and if you are afraid of stablecoins you have to find out which one is safer even though there is no guarantee because what you are worried about could happen, or exchanging it for an altcoin which is more stable would be an option but You have to find out what it is yourself

I don't understand what you're talking about about taxing stablecoins, if you do that then who will tax you? Banks, or governments,... cannot afford to intervene too deeply in each cryptocurrency, and as long as you still keep the "key", how you use it is your business, not sure if you are wrong mixed into fiat or not?

But in general, you should not be too influenced by this market, because it does not always increase forever on a certain time frame, its fluctuations bring return/risk. So if there is a long-term plan, it is only a matter of time for bitcoin to reach the $100k target. I don't think at the moment there will be altcoin growth in your opinion, because I know there are trends. The direction still goes against bitcoin's situation, but its risk profile is often more complex. So if you consider safety, I do not recommend speculating on things you do not understand, it would be reasonable if in the short term you can keep the stablecoin yourself and it is completely possible to wait for the price to decrease to buy more.

That's a line of crud.  All Altcoins don't outpace bitcoin in a bull market.  You can look at bitcoin dominance during bulls and see its lead widen that's because it's outpacing the market.  Yeah there are some alts that will outpace it of course but the chances of winning by playing the altcoin game is risky it usually doesn't work out.

Exactly, for now no altcoins can go up when Bitcoin is coming down. When Bitcoin comes down all the altcoins  comes down some even drastically reduced. There is no probability of any altcoins that woll takeover the position of Bitcoin. Bitcoin nis always at the top. And altcoins can not do what Bitcoin does that is not true. Though ni have not gotten any altcoins yet and the altcoin that the person might trying not tell op is Ethereum. Because Ethereum is the only Altcoin that is second to Bitcoin, though it is still very far from reaching Bitcoin.

For me, it's different now.
It's very rare now to happen that if Bitcoin dumps, altcoins pump.
But before, like around the bull market 2017-2018, that's the common behavior.
But now, if Bitcoin dumps, altcoins dumps too. And sometimes it also depends in Bitcoin dominance.

OP, There are thousands of altcoins in the market, you can research exactly how many will go up or down. I have noticed many instances in the cryptocurrency market where the price of Bitcoin has decreased while several altcoins have increased in value, and Many altcoins I have no idea can grow. I have also noticed that, when the price of Bitcoin falls, many investors sell their holdings and transfer their funds to stablecoins to protect their value and reduce the risk of further losses. However at the moment I can't give you the exact solution, if BTC goes down Which altcoin will go up. But i can tell that you hold top-level altcoin that have shown resilience in the past.

No one can tell when what will happen in the crypto currency market. Even nobody can accurately predict the crypto currency market. Bitcoin is the most expensive coin and the most popular coin in the cryptocurrency market.If the price of Bitcoin falls in the crypto currency market, the price of other coins will fall. But OP as you said I have never seen any alt coins increase in price when bitcoin price goes down I think it's rare now. After the announcement of Bitcoin Fake ETF approval a few days ago we saw the price of Bitcoin rise above $48000 and most of the altcoins rise. But after that fake ETF was detected, the price of bitcoin started to fall and then the price of alt coin also started to fall. Maybe this proves that when bitcoin price is dumping, alt coin price is dumping.

Well that would be stablecoin. If you want an altcoin thats not perceived btc's price then thats totally impossible. Most alts are also paired with btc and even so, btc crash would likely affect other tokens too and worse much bigger down. Thats the thing about altcoins you could gain 10x to 100x but also the down can be 90% like what happened last year after the bull run season. Most coins are down.

I don't think stable coins will be depegged especially for USDT and USDC, if you expect Bitcoin to crash 40% then you should have swapped and made stablecoins and bought when that time comes.

I think not, because I noticed that there are still alts last time who rise when BTC is down. Solana for example. There is also ETH. I know there are more than them if we always track the crypto market statistics. We also have what we called alt season. It usually comes after the Bitcoin bull run. It's when majority of the altcoins are pumping.

In the year of 2017, both alts and BTC are pumping on the last quarter of the year but in 2018, both of them have dumped. This is the cycle of bear and bull. And yes, it's common in any financial markets. I also agree that the pump of altcoins will depend on the BTC dominance, because if the dominance is less, that may mean that people are going for altcoins.