How come BTC price and iBTC price goes down simultaneously?

[Shymaa-Arafat]

iBTC is an inverse derivative to Bitcoin, which means its price is supposed to go high if the BTC price goes down. Currently, you can check Binance or any similar site to see they're both going down.
Can anyone specialized in economics here explain to us why or how this is happening?
.
If I can speculate that Bitcoin is actually going up in some sense, but it's like the whole DeFi or crypto vehicle or ship is going down by a higher rate and that's why all is going down, is there some economy science or like theory that supports this speculation?
I mean what could be this crypto vehicle or ship?

[_act_]

It is there from its meaning, it is inverse form of bitcoin in price relation.

Assuming you buy iBTC when bitcoin is at $10000, if bitcoin drops in price to $9500, it means iBTC will be at $10500. If bitcoin increased to $11000, that means iBTC will decrease to $9000. That is, inverse form of bitcoin price.

Which means as bitcoin is having more price gain, iBTC price is reducing, or as bitcoin price is reducing, iBTC price is increasing in inversely proportional order.

To learn more, you can read this:

https://docs.synthetix.io/tokens/#inverse-isynths

So, iBTC is not going in the opposite direction in a higher rate, but not recommended to be used in my opinion.

[Shymaa-Arafat]

It is there from its meaning, it is inverse form of bitcoin in price relation.

Assuming you buy iBTC when bitcoin is at $10000, if bitcoin drops in price to $9500, it means iBTC will be at $10500. If bitcoin increased to $11000, that means iBTC will decrease to $9000. That is, inverse form of bitcoin price.

Which means as bitcoin is having more price gain, iBTC price is reducing, or as bitcoin price is reducing, iBTC price is increasing in inversely proportional order.

To learn more, you can read this:

https://docs.synthetix.io/tokens/#inverse-isynths

My question is that's NOT  happening right now both are going down

[_act_]

My question is that's NOT  happening right now both are going down

That was what I read about the coin, but that is just the theory part and not what is happening in the real life, I checked the price history of the coin and not correct at all with bitcoin price as it was said.

My advice is that you should stay away from coins like this, if you want to be able to see bitcoin and make profit, the best I can suggest is for you to open a short position for it, but exchanges only provide this option..

[Shymaa-Arafat]

My advice is that you should stay away from coins like this, if you want to be able to see bitcoin and make profit, the best I can suggest is for you to open a short position for it, but exchanges only provide this option..

I'm not buying any coins, I'm trying to understand how this is happening.
There must be some scientific people in this group who study the science behind what's happening

[suzanne5223]

It is there from its meaning, it is inverse form of bitcoin in price relation.

Assuming you buy iBTC when bitcoin is at $10000, if bitcoin drops in price to $9500, it means iBTC will be at $10500. If bitcoin increased to $11000, that means iBTC will decrease to $9000. That is, inverse form of bitcoin price.

Which means as bitcoin is having more price gain, iBTC price is reducing, or as bitcoin price is reducing, iBTC price is increasing in inversely proportional order.

To learn more, you can read this:

https://docs.synthetix.io/tokens/#inverse-isynths

My question is that's NOT  happening right now both are going down

As the above user stated, the token was said to be opposite in price of Bitcoin but it is just one of the joke cryptocurrencies created by some project owners to enrich their satchel and what I don't understand is why you choose such a coin when there is good potential altcoin you can buy at cheap especially now that Bitcoin has chosen another bottom price.


Edit: was composing this message when OP post the above message.

[Shymaa-Arafat]

I'm just adding this comment to notify that the question remains unanswered ...
No one explained why or how

[KingsDen]

I'm just adding this comment to notify that the question remains unanswered ...
No one explained why or how

Let me see if you can appreciate this answer I will give you.

There is no specific code or protocol that is designed in any coin that makes it work with the name given it. All projects is based on the demand and supply. The names such as iBTC is for publicity and there is no tangibility behind it.

Take for instance, I can create a coin and name it 'Sun-Rise'. I will tell you that the coin falls at night when there's no sun but rises in the morning as the sun is rising. That does not mean I coded the sun into the project. I only gave the name to make you sell in the evening and buy in the morning. And thousands of people will keep selling in the evening and buying in the morning, and you will think the coin is fulfilling its name. Yes, it might work for sometimes until the  big boys (whales) will prove you wrong.

I don't know if this answer helped.

[Shymaa-Arafat]

From Binance:
https://www.binance.com/en/how-to-buy/ibtc

$ 0.0001114 USD
-8.24%
(24H)
The live price of iBTC is $ 0.0001114 per (IBTC / USD) today with a current market cap of $ 5,568.54 USD. 24-hour trading volume is $ 0 USD. BTC to USD price is updated in real-time. Bitcoin is -8.24% in the last 24 hours. It has a circulating supply of $ 49.99M.

It doesn't make sense both are down by 8.24% as if it's pegging BTC not its inverse?

[teosanru]

iBTC is an inverse derivative to Bitcoin, which means its price is supposed to go high if the BTC price goes down. Currently, you can check Binance or any similar site to see they're both going down.
Can anyone specialized in economics here explain to us why or how this is happening?
.
If I can speculate that Bitcoin is actually going up in some sense, but it's like the whole DeFi or crypto vehicle or ship is going down by a higher rate and that's why all is going down, is there some economy science or like theory that supports this speculation?
I mean what could be this crypto vehicle or ship?

 Yes actually this a problem with derivatives, you might even have heard about long shorts derivatives, these derivatives do sound as if long will go up when prices of the underlying asset go up and price of shorts would go up when prices of underlying assets go down but actually both of them go down because of lack of demand, when there is fall in price people perceive it as lack of interest in a commodity thereby that commodity's price is bound to go down.

[Iadegbola34]

From Binance:
https://www.binance.com/en/how-to-buy/ibtc

$ 0.0001114 USD
-8.24%
(24H)
The live price of iBTC is $ 0.0001114 per (IBTC / USD) today with a current market cap of $ 5,568.54 USD. 24-hour trading volume is $ 0 USD. BTC to USD price is updated in real-time. Bitcoin is -8.24% in the last 24 hours. It has a circulating supply of $ 49.99M.

It doesn't make sense both are down by 8.24% as if it's pegging BTC not its inverse?

You've just answered your own question. If it's going down along with the price of bitcoin doesn't that shows that it can't serve the purpose for which it was created for.

Let me see if you can appreciate this answer I will give you.

There is no specific code or protocol that is designed in any coin that makes it work with the name given it. All projects is based on the demand and supply. The names such as iBTC is for publicity and there is no tangibility behind it.

Take for instance, I can create a coin and name it 'Sun-Rise'. I will tell you that the coin falls at night when there's no sun but rises in the morning as the sun is rising. That does not mean I coded the sun into the project. I only gave the name to make you sell in the evening and buy in the morning. And thousands of people will keep selling in the evening and buying in the morning, and you will think the coin is fulfilling its name. Yes, it might work for sometimes until the  big boys (whales) will prove you wrong.

I don't know if this answer helped.

I suggest you go over the answer provided by OP above. The creator of iBTC doesn't have the power to control the price of BTC to go inversely to the price of his own coin and neither does he have the power to control the price of iBTC to move against BTC.

These two coins are traded on exchanges and the market decide their price not some pre-conceived speculation. The only reason you're confused is you're taking the words of the creator of iBTC for it. You're better off ignoring those speculations.

[TheGreatPython]

That only means one thing, that coin is fake. I think there is no such thing as that where a coin can move oppositely from the rest and if ever it is legit then it would be an easy money for the people that discovers it because it will now be easy to predict things by just basing on their opposites. They can also place their bets on two sides to increase their potential income. Maybe this coin is just another meme coin that uses the current trend of btc because nowadays btc is in the headlines due to its new all time low and also about the repetition of events based from the past years.

If I can speculate that Bitcoin is actually going up in some sense, but it's like the whole DeFi or crypto vehicle or ship is going down by a higher rate and that's why all is going down, is there some economy science or like theory that supports this speculation?
I mean what could be this crypto vehicle or ship?

Just don't speculate that btc will go up and maybe it will now go up 

[LoyceMobile]

From Binance:
https://www.binance.com/en/how-to-buy/ibtc

$ 0.0001114 USD
-8.24%
(24H)
The live price of iBTC is $ 0.0001114 per (IBTC / USD) today with a current market cap of $ 5,568.54 USD. 24-hour trading volume is $ 0 USD. BTC to USD price is updated in real-time. Bitcoin is -8.24% in the last 24 hours. It has a circulating supply of $ 49.99M.

It doesn't make sense both are down by 8.24% as if it's pegging BTC not its inverse?

Your quote shows the market cap is tiny and the trading volume is zero. So the price means nothing.

I'd stay away from those things.

[Saint-loup]

From Binance:
https://www.binance.com/en/how-to-buy/ibtc

$ 0.0001114 USD
-8.24%
(24H)
The live price of iBTC is $ 0.0001114 per (IBTC / USD) today with a current market cap of $ 5,568.54 USD. 24-hour trading volume is $ 0 USD. BTC to USD price is updated in real-time. Bitcoin is -8.24% in the last 24 hours. It has a circulating supply of $ 49.99M.

It doesn't make sense both are down by 8.24% as if it's pegging BTC not its inverse?

iBTC is a token from the Synthetix protocol, what you've found shows people don't trust this protocol and this product especially. They are obviously trying to leave their funds from this asset, which causes this depegging, it could be the first signal of a crash like UST from Terra has encountered few weeks ago.

iBTC is an inverse synthetic Bitcoin token enabled by the Synthetix protocol. It inversely tracks the price of Bitcoin through price feeds supplied by Chainlink’s decentralized network of oracles. It can be traded without slippage for other assets native to the Synthetix protocol at Kwenta or Synthetix.Exchange.

https://coinmarketcap.com/fr/currencies/ibtc/

[Shymaa-Arafat]

[
iBTC is a token from the Synthetix protocol, what you've found shows people don't trust this protocol and this product especially. They are obviously trying to leave their funds from this asset, which causes this depegging, it could be the first signal of a crash like UST from Terra has encountered few weeks ago.

iBTC is an inverse synthetic Bitcoin token enabled by the Synthetix protocol. It inversely tracks the price of Bitcoin through price feeds supplied by Chainlink’s decentralized network of oracles. It can be traded without slippage for other assets native to the Synthetix protocol at Kwenta or Synthetix.Exchange.

https://coinmarketcap.com/fr/currencies/ibtc/

Yes I was thinking near that too, the DEXs couldn't maintain the pegging of 1 USDT/USDC = 1$ and that collapsed their logic & equations somehow
Yet, I'm not sure of this explaination, I will wait till the DeFi MOOC 2022 lectures start probably they will shade some light on that.
I learned about Synthetix and iBTC from the course
https://defi-learning.org/f21
lectures 7&9
All other courses I studied concentrated on Computer & Engineering areas (my field) this was the only one with financial details