It's all due to the minds that co-ordinate this mess. Economics, it is very much psychological.
My thinking is that any number of these thoughts are running through buyers minds.
should I send it now to my cousin? or wait till the price stabalizes? Could take some time for them to pick it up.
Am I getting fair value for my Bitcoins? should I exchange my Altcoins now?
etc, etc.
BTC to Altcoin will always fluctuate in unpredictable ways.
BTC goes down, Altcoins go up: people have confidence, they're buying as much Altcoins to hedge against a fiat run.
BTC goes up, Altcoins go down: people are buying Bitcoins with an intention to cash out with Altcoins.
I figure the only time it's stable is when there is a balance of all players flowing in and out of the Cryptoeconomy.
but then again like everything, this is just one point of view.
Very interesting. I'm no expert, but I don't see any flaws in your thinking.