Why NOW there is so much correlation between MOST cryptos and BTC??

[Mf3gh]

Hi all,

I have been checking in https://coinmarketcap.com/all/views/all/ for the last weeks (like the last 2-3 months), and checking the graphs of many coins and I remember that 2-3 months ago most crypto coins were going individually (one will go up +21.3%, other -18.42%, another one +52%, other -25%, and so on, independtly what bitcoin did that day). But, now if you check the graphs at https://coinmarketcap.com/all/views/all/ and watch the graphs (on the right) you will see that the first 200 coins have exactly the same graph than bitcoin, and if bitcoins goes up the other crypto´s will go up, if bitcoin go down, the others go down.

So, there is no more Independence in the movements of most crypto´s. Maybe some (a 5%) go in their own, but most not. So, it is like buying bitcoins, because they have the same movements.

1. Why this has happened?
2. Why this has happened NOW (in the last 2 months)? Is there any reason?
3. Is it going to be this way forever?

Because if this is the case, then investing in any crypto is like investing in bitcoin, the movements will be (more or less) almost the same. No more +42% in a day for a new crypto, no more looking at https://coinmarketcap.com/all/views/all/ and watch many different results during the day.

I think hedge funds are responsable for this. I might be wrong. What are your opinions?

[Mf3gh]

Any idea why is this happening?

In my opinión, hedge funds are hedging with bots all the time, but what is surprising is that hundred´s of coins do the same movements. The normal thing will doing it in the most capitalized coins, but no, it is in all.

Any comments?

[Jashhh]

Amazing to see how lately some altcoins are green and high when almost everything is red.

Ofcourse sometimes really EVERYTHING goes down when BTC goes down, but i think it shows that people want to make use of the current cheap Bitcoin prices, so they sell altcoins that are on a high price now to have maximum profit and buy BTC because that's so cheap now.

It's the day-traders that cause this high correlation.

[-Redacted-]

For me there is nothing surprising in this. Bitcoin is the basis of the cryptocurrencies and its high liquidity was obvious and predicted by many experts. All other coins depend on his course.

[Mf3gh]

Amazing to see how lately some altcoins are green and high when almost everything is red.

Ofcourse sometimes really EVERYTHING goes down when BTC goes down, but i think it shows that people want to make use of the current cheap Bitcoin prices, so they sell altcoins that are on a high price now to have maximum profit and buy BTC because that's so cheap now.

It's the day-traders that cause this high correlation.

Yes, now this happens from time to time, but it was a rule almost 1 month ago (all alt-coins going their way, totally independent of bitcoin). But, now, most days, if you check all graphs of the main 200 coins, 95% fall when bitcoin fall, and go up when bitcoins go up. It could be concebible for the best 10 alt-coins (because maybe big groups are doing some kind of hedging), but if you take a look at the first 50 coins, most are related with the movements of bitcoin. And it was not like this until 1 month ago or so.

For me there is nothing surprising in this. Bitcoin is the basis of the cryptocurrencies and its high liquidity was obvious and predicted by many experts. All other coins depend on his course.

Bitcoin has been the basis for most alt-coins but most alt-coins movements were totally independent of bitcoin until 1 month ago or so. One could go up 34% while bitcoin was +4%, and other +21%, other -32%, and so on. Now, most are up when bitcoin is up, and downs when btc is down. It did not happen some months ago.