Bitcoin, Ethereum and Litecoin in lockstep

[dsarokin]

So, this morning on coinbase, all three coins (bitcoin, ether, litecoin) plunged at exactly the same time. You can see the charts here:

https://drive.google.com/file/d/0B1sXZG13-t3BTW1VOWVFZ0pVZFU/view?usp=sharing

or just go to Coinbase today (Sept 8th) to see them live. This happens all the time...all three coins reacting precisely the same way, either a big drop or a big rise, at exactly the same time.

HOW DOES THAT HAPPEN? I'm trying to think of a scenario that would link all three coins (and possibly, others as well). But so far, I've come up blank. It seems to me they should be trading pretty independently, and not tied to one another so tightly.

Any thoughts on this?

[CARrency]

So, this morning on coinbase, all three coins (bitcoin, ether, litecoin) plunged at exactly the same time. You can see the charts here:

https://drive.google.com/file/d/0B1sXZG13-t3BTW1VOWVFZ0pVZFU/view?usp=sharing

or just go to Coinbase today (Sept 8th) to see them live. This happens all the time...all three coins reacting precisely the same way, either a big drop or a big rise, at exactly the same time.

HOW DOES THAT HAPPEN? I'm trying to think of a scenario that would link all three coins (and possibly, others as well). But so far, I've come up blank. It seems to me they should be trading pretty independently, and not tied to one another so tightly.

Any thoughts on this?

That is really weird if you will be thinking of it. Most of the exchangers of altcoins depend it's price to bitcoin. So the tendency of other altcoins when bitcoin make a price change, let's say decreasing, the prices of altcoin but in the opposite way the bitcoins price changes.

[dsarokin]

I agree, CARrency...it's really weird. It happens so instantaneously and is so synchronized across the coins, that I can only guess it's some sort of automated trading machine putting in some large sells. But that still leaves the question of what the trigger was that caused the machine to fire (and who's machine it is, too?).

Hope some others will chime in here...

David

[buwaytress]

When the first uptake happened around end of 2016 and early 2017 (I would only have been months into Bitcoin at the time), I thought the pattern to be coincidence too. But it happened especially during the spring boom - although this was the move that about 90% of alts followed - even Dogecoin! Even after the two individual spikes of Litecoin, and the more recent one of Monero, they then follow Bitcoin's moves in tandem. Also would be glad to see more insight from others.

[Saoha]

So, this morning on coinbase, all three coins (bitcoin, ether, litecoin) plunged at exactly the same time. You can see the charts here:

https://drive.google.com/file/d/0B1sXZG13-t3BTW1VOWVFZ0pVZFU/view?usp=sharing

or just go to Coinbase today (Sept 8th) to see them live. This happens all the time...all three coins reacting precisely the same way, either a big drop or a big rise, at exactly the same time.

HOW DOES THAT HAPPEN? I'm trying to think of a scenario that would link all three coins (and possibly, others as well). But so far, I've come up blank. It seems to me they should be trading pretty independently, and not tied to one another so tightly.

Any thoughts on this?

We will not be able to anticipate this situation, but there are four trends: Bitcoin reduction - Altcoins decrease, Bitcoin increase - Altcoin increase, Bitcoin increase - Altcoin decrease and vice versa. It depends on many factors such as the presence of sharks, good or bad news about them, ...
At present, the downward trend of Bitcoin - Altcoin (ETH and LTC) decreases seems to be gradually reducing the market capitalization. But do not worry too much because the price of the coin will rise again when sharks get have cheap coins

[SONG GEET]

HOW DOES THAT HAPPEN? I'm trying to think of a scenario that would link all three coins (and possibly, others as well). But so far, I've come up blank. It seems to me they should be trading pretty independently, and not tied to one another so tightly.

No you are wrong on this one, ETH and LTC along with many other alts are also traded against BTC and it accounts for larger volume than that of alt-usd pairs. Therefore whenever there are huge move in bitcoin price, changes will be proportional to altcoin price in terms of dollar.

[dsarokin]

No you are wrong on this one, ETH and LTC along with many other alts are also traded against BTC and it accounts for larger volume than that of alt-usd pairs. Therefore whenever there are huge move in bitcoin price, changes will be proportional to altcoin price in terms of dollar.

Thanks, SONG GEET. I probably should have been clearer with my question. This morning, news was posted on the Caixin news service in China about possible Chinese limits on bitcoin activity. Minutes later, all three coins dropped sharply, and to the same degree. I suspect some sort of machine trading was needed to have all three coins react so quickly and so exactly like one another. I'm just trying to understand the mechanics of all that more clearly.

When (seemingly) bad news gets posted, how do the markets react so quickly, well before most people have even heard the news?

 

[JohnBitCo]

So, this morning on coinbase, all three coins (bitcoin, ether, litecoin) plunged at exactly the same time. You can see the charts here:

https://drive.google.com/file/d/0B1sXZG13-t3BTW1VOWVFZ0pVZFU/view?usp=sharing

or just go to Coinbase today (Sept 8th) to see them live. This happens all the time...all three coins reacting precisely the same way, either a big drop or a big rise, at exactly the same time.

HOW DOES THAT HAPPEN? I'm trying to think of a scenario that would link all three coins (and possibly, others as well). But so far, I've come up blank. It seems to me they should be trading pretty independently, and not tied to one another so tightly.

Any thoughts on this?

That is the nature of the markets and that is the key to making money,. It is like Forex, a Russian war lowers the value of the EURO and so forth. This is the key and base line knowledge that makes a trader have success. You have to know what is going on in the world, how it will affect the prices in the markets and how far that price change will ripple outward.

[eaLiTy]

When (seemingly) bad news gets posted, how do the markets react so quickly, well before most people have even heard the news?

This is an interesting question,since the crypto market is active round the clock ,someone would be hearing those news before the rest of the world and their reaction could trigger the market slide and most of the bots trading could react to those market variations and move the markets rapidly and so is the reason you see that the market recovering after a certain period,we are yet to see a big crash in the entire market and i doubt it will happen with the amount of investors and traders we have right now.

[HeRetiK]

With a few exceptions it has been always that way. The alt bleeds when Bitcoin does. The alt bleeds when Bitcoin rises too quickly. The alts usually only grow when Bitcoin is either stable or in a slight upward trend.

When (seemingly) bad news gets posted, how do the markets react so quickly, well before most people have even heard the news?

This is an interesting question,since the crypto market is active round the clock ,someone would be hearing those news before the rest of the world and their reaction could trigger the market slide and most of the bots trading could react to those market variations and move the markets rapidly and so is the reason you see that the market recovering after a certain period,we are yet to see a big crash in the entire market and i doubt it will happen with the amount of investors and traders we have right now.

Never say never! Buyers can turn into sellers at the blink of an eye, regardless of market size.

[SirLancelot]

With a few exceptions it has been always that way. The alt bleeds when Bitcoin does. The alt bleeds when Bitcoin rises too quickly. The alts usually only grow when Bitcoin is either stable or in a slight upward trend.

When (seemingly) bad news gets posted, how do the markets react so quickly, well before most people have even heard the news?

This is an interesting question,since the crypto market is active round the clock ,someone would be hearing those news before the rest of the world and their reaction could trigger the market slide and most of the bots trading could react to those market variations and move the markets rapidly and so is the reason you see that the market recovering after a certain period,we are yet to see a big crash in the entire market and i doubt it will happen with the amount of investors and traders we have right now.

Never say never! Buyers can turn into sellers at the blink of an eye, regardless of market size.

You are very much right. I think Bitcoin is far ahead than either of both in this race. The market value of Bitcoin is far better than any of these. People do trade in them as well but they don’t opt any of both as their permanent source of investment. They only go for these options when the price of Bitcoin gets stable.

[carlisle1]

With a few exceptions it has been always that way. The alt bleeds when Bitcoin does. The alt bleeds when Bitcoin rises too quickly. The alts usually only grow when Bitcoin is either stable or in a slight upward trend.

When (seemingly) bad news gets posted, how do the markets react so quickly, well before most people have even heard the news?

This is an interesting question,since the crypto market is active round the clock ,someone would be hearing those news before the rest of the world and their reaction could trigger the market slide and most of the bots trading could react to those market variations and move the markets rapidly and so is the reason you see that the market recovering after a certain period,we are yet to see a big crash in the entire market and i doubt it will happen with the amount of investors and traders we have right now.

Never say never! Buyers can turn into sellers at the blink of an eye, regardless of market size.

You are very much right. I think Bitcoin is far ahead than either of both in this race. The market value of Bitcoin is far better than any of these. People do trade in them as well but they don’t opt any of both as their permanent source of investment. They only go for these options when the price of Bitcoin gets stable.

seems to me that its always depend from how bitcoin will performed and we can deny the fact that its really making its own directions, more bleeding shows that trust from the project are in doubt while bitcoin still been hold and being use to buy those project that still have good potentials.

[fabiorem]

Whales, OP.

Just that. Whales.

[panju1]

Whales, OP.

Just that. Whales.

It is not just the whales dumping and pumping different coins at the same time. The crypto market in general is highly correlated. Until he block size debate started getting heated up, Bitcoin accounted for 80% of the market cap and the entire market moved in sync. Only at that point was the linkage broken.

[robotrobert]

So, this morning on coinbase, all three coins (bitcoin, ether, litecoin) plunged at exactly the same time. You can see the charts here:

https://drive.google.com/file/d/0B1sXZG13-t3BTW1VOWVFZ0pVZFU/view?usp=sharing

or just go to Coinbase today (Sept 8th) to see them live. This happens all the time...all three coins reacting precisely the same way, either a big drop or a big rise, at exactly the same time.

HOW DOES THAT HAPPEN? I'm trying to think of a scenario that would link all three coins (and possibly, others as well). But so far, I've come up blank. It seems to me they should be trading pretty independently, and not tied to one another so tightly.

Any thoughts on this?

It seems this is becoming the new trend for these 3 cryptocurrencies. I have noticed even before the huge dump the rate at which they were being bullish and it is sure good but it seems it is usual for bitcoin to pull down or pull up other altcoins with it.

[n691309]

With a few exceptions it has been always that way. The alt bleeds when Bitcoin does. The alt bleeds when Bitcoin rises too quickly. The alts usually only grow when Bitcoin is either stable or in a slight upward trend.

That is so true and that usually is the cause of a huge dip most especially for those who have enough funds to control the market as they like. The real market players! I have seen them at work once when they just kept buying and dumping all at once. Something like this even happened once to one shit coin and totally ruined the existence of that coin till date.

[vit05]

It was when Via BTC ceo talked that the news about CHina banning Bitcoin was true.

https://twitter.com/yhaiyang/status/906166588251844609

And I believe that there was an article in WSJ too

[hatshepsut93]

Reason number one - altcoins are linked in their price to BTC because a big amount of their volume is in BTC, so their price moves mirror the moves of BTC.

Reson number two - Bitcoin is the main cryptocurrency, whatever happens to it is also very likely to happen with all other coins - if it will get banned, altcoins will be banned too, if it will be adopted, some altcoins will be adopted too, etc. etc. Altcoins have a lot of their own volatility due to news, speculation developments, but Bitcoin's ecosystem is still a big factor and it will be like that until the crypto market will mature.

[The Sceptical Chymist]

Same reason the entire stock market can be down on any given day.  Big investors--or lots of little one--sell everything at the same time.  It's not magic, and it happens a lot so get used to it.

I think people should educate themselves first, before ever getting into the crypto markets.  It migh spare them a lot of pain in the end.