Federal Reserve Blames Altcoins for Dragging Down the Bitcoin Price

[exstasie]

most probably we won't see any ICO bubble ever again because these silly methods of taking people's money only work once. but we will see other similar methods of taking people's money!

If it's not ICOs then it'll be something similar. Bitcoiners are mad about speculation and putting their coins to work for them. From Litecoin to Bitcoin Savings & Trust (pirateat40) to ASICminer and all sorts of other securities, to the Bitfinex crowdfunding buyout and finally the ICO craze.....History shows that bitcoiners will keep throwing their coins at risky investments.

[adaseb]

It doesn't matter if the ratio between BTC and some alt changes. Altcoins can drag down bitcoin price and vice versa.

Unless the altcoin is ETH or LTC which has enough liquidity to be traded for USD fiat, most will need to interact with BTC to cash out.

Say someone owns some altcoin called ABC. The altcoin market is crashing and they want to get out. They can't sell ABC because there is no ABC/USD on their exchange. So they need to sell ABC and buy BTC instead and then they send that BTC to their exchange and sell for USD.

This causes selling pressure. Its completely opposite of what happened with ETH price back in 2017.

ETH price went up exponentially because people had to buy ETH to buy ICOs, so there was a shortage of ETH and caused the price go up dramatically so they could later buy the ICOs.

[Pursuer]

one many occasions I have said in this board that the altcoin dumps which were  at those specific times very big dumps caused a big sell pressure on bitcoin market and pushes its price lower because of that pressure they put on the market which would not have existed otherwise and was created because money was existing those shitcions and were going back to fiat through bitcoin.

BUT I would never go as far as saying they were "dragging bitcoin price down". if we start that theory then you should also consider the fact that the same shitcoins may have been the reason for the price rise in first place so as a result price shouldn't have gone up and consequently the altcoin dumps is not dragging price down, it shouldn't have gone up in first place!
which is mostly false in my opinion. the altcoin and ICO hype of 2017 surely contributed to bitcoin price rise but it was 90% in reverse meaning the bitcoin price rise meant more hype for them and people who were investing in bitcoin were then exposed to shitcoins and invested part of their bitcoin in them. and after their dump they went back to bitcoin not to fiat.

[davis196]

Interesting exmaple,but the bitcoin vs.altcoin prices aren't fixed,like in this example.
Altcoins are dragging down the bitcoin price,because of the day traders/pump&dump "investors" and big profit margin seekers.They are altcoins instead of btc and that's why the bitcoin price isn't going up.