I imagine this is an old topic but for the life of me I cannot figure out why it moves 1:1 as if ETH did not have its own market.

Is it because 60%+ of the trades are crypto-to-crypto? Is it the futures in BitMex? What are the movers.

Or is it just that people HODL equal amounts of ETH and BTC and buy/sell them together? (doubtful)

Any ideas?

Let's assume I am a retailer/merchant. I sell soups.

So I am selling soups all day for bitcoins. At the end of the day I have to pay salaries, suppliers, rent etc in dollars. So I take my BTC revenue and convert it to dollars.

However, since bitcoin can go up and go down I cannot be sure how much money I will have made in the day.

How are the merchants today accepting Bitcoin? Do they put the price with a huge premium so that they are not exposed to the risk? Like add 10% on top of price in bitcoins.. also you would need to re-label the shelf prices like twice a day.. brr.. too complicated.

Does anyone have any insight?