Every BTC-bump is LTC-crash?

[Boxman90]

I'd just like someone to explain this to me - why is it that every time BTC rises, the BTC/LTC index drops significantly (0.302 -> 0.294 just today), while LTC also tanks when BTC tanks.

I don't really get it. Are people panicing of missing the BTC train and selling their LTC?

[1714147239]

1714147239

[CoinHoarder]

If LTC stayed the same value and value of BTC went up, then the conversion rate of BTC to LTC should come down naturally.

Example:
BTC= $1
LTC= $0.10
LTC/BTC should be .1

BTC= $10
LTC= $0.10
LTC/BTC should be .01

[Boxman90]

Yes but it seems to be only selectively tied to BTC.

If BTC rises, LTC rises but less than BTC.
If BTC tanks, LTC tanks with it at an equal or even greater rate.

I don't get the dynamics.

[CoinHoarder]

Yes but it seems to be only selectively tied to BTC.

If BTC rises, LTC rises but less than BTC.
If BTC tanks, LTC tanks with it at an equal or even greater rate.

I don't get the dynamics.

A lot of people think LTC value is tied to BTC value, and this really affects the market.

BTC has a larger audience and user base, so when it goes up there are more people around to buy it up higher, and also more capital to buy the value up higher as well.

But when it crashes, both crash the same because user base does not matter when its crashing, only when its going up.

[Boxman90]

But when it crashes, both crash the same because user base does not matter when its crashing, only when its going up.

Why would a userbase only matter when it's going up?

[CoinHoarder]

But when it crashes, both crash the same because user base does not matter when its crashing, only when its going up.

Why would a userbase only matter when it's going up?

Because a bigger user base means more FIAT to buy coins with.

A smaller user base means less FIAT to buy coins with.

The amount of coins for each currency is a fixed amount, so the amount of users has no affect on a crash (unless there's one guy with a lot of coins.. but LTC/BTC are spread pretty evenly.)

[adpinbr]

Yes but it seems to be only selectively tied to BTC.

If BTC rises, LTC rises but less than BTC.
If BTC tanks, LTC tanks with it at an equal or even greater rate.

I don't get the dynamics.

A lot of people think LTC value is tied to BTC value, and this really affects the market.

BTC has a larger audience and user base, so when it goes up there are more people around to buy it up higher, and also more capital to buy the value up higher as well.

But when it crashes, both crash the same because user base does not matter when its crashing, only when its going up.

If you have less sheeple buying LTC when it goes up you should have less sheeple selling when it goes down. I think the phenomenon comes from the irrational attitude of people that because they feel LTC is less liquid than BTC, they should sell the LTC for BTC when there is a rise in BTC so they can exit the ecosystem. However those who know about LTC probably are not exiting the crypto ecosystem and therefore their actions make no sense, yet this promotes more people to act this way. Its fucking stupid and I hate what bitcoin has become. Hoping litecoin hits mt box and then I'm off to penny stocks this shit going on here has become ridiculous

[LiteBit]

A lot of BTC moves into the BTC/LTC side of the exchange when the value of BTC and LTC drops.  Essentially BTCers buying LTC.  This dampens the fall and ties the 2 currencies together.   Then when BTC and LTC start to rise folks in the BTC/LTC side sell LTC and jump back on BTC.  This causes a drop in BTC/LTC chart.  But I wouldn't call it drastic by any means. 

If you look at the candlesticks they may look long and scary, but they are only moving 1/100 of a number.  So it may drop from .030 to .029 on a BTC and LTC rise but then go back to .030 on a BTC and LTC fall

[GSnak]

LTC is till unwinding from the pump it received the second to last time it was mentioned by Gox. It rose of it's own accord, now that Gox has said they have no estimate of release date it's going back down.

[soundasleep]

Around the time of the BTC peak (USD 200+), LTC/BTC was holding steady. It was pretty awesome to watch.