Do LTC, NMC, & PPC follow proportionately to BTC prices?

[eggran]

Was wondering if the alt-crypto's like LTC/NMC/PPC follow [for the most part] Bitcoin's prices and will continue to do so. Or will they hit a wall at some point?

[TERA]

Was wondering if the alt-crypto's like LTC/NMC/PPC follow [for the most part] Bitcoin's prices and will continue to do so. Or will they hit a wall at some point?

This changes monthly. Sometimes they move with btc, sometimes against, and sometimes flat.

[eggran]

Was wondering if the alt-crypto's like LTC/NMC/PPC follow [for the most part] Bitcoin's prices and will continue to do so. Or will they hit a wall at some point?

This changes monthly. Sometimes they move with btc, sometimes against, and sometimes flat.

do you mind expanding on that? what causes the differences each month? do they still generally move with btc?

[TERA]

It's all based on psychology.

During a btc bubble, alt/btc tends to move against btc. This is because
1) Traders all want to hold btc to be part of the btc rally, and are willing to sell the alt at any price, to oversold levels, to do so. This drives alt/btc down.
2. Traders have the attitude that alt/usd is a constant and then when btc/usd rises, mathematically, alt/btc must fall, and vice versa.
3) They use the alt as a hedge against btc corrections during the rally.
Summary: Traders want to hold BTC.

During a btc crash after a bubble, alt/btc tends to move with btc. This is because
1). Investors are so bearish that they sell the alt to oversold levels because it necessary to sell btc for fiat.
2) A bearish mindset that if btc can crash then alts must be completely worthless.
Summary: Traders want to hold FIAT.

When these conditions are not met, often btc/usd does not affect alt/btc. This is because
1) Investors are not having trading reactions on one pair based on the other pair and there is no psychological reason to do this.
2) Investors realize that the value of alts rise and fall with the value of btc.
Summary: Theres no strong influence over what traders are holding.

[piramida]

All altcoins generally have their price declining wrt BTC, unless some small investor comes and manipulates their prices as he sees fit. But yes, when BTC jumps, other cryptos jump too, as they are mostly traded for BTC, so they can be seen as the first commodity to be priced in BTC.

[Notanon]

Mt.Gox's planned addition of LTC should be really interesting, as the proposed new trading engine is rumoured to also allow for more altcoins to be traded as well. It might result in more of a decoupling between BTC and the alts.

[eggran]

It's all based on psychology.

During a btc bubble, alt/btc tends to move against btc. This is because
1) Traders all want to hold btc to be part of the btc rally, and are willing to sell the alt at any price, to oversold levels, to do so. This drives alt/btc down.
2. Traders have the attitude that alt/usd is a constant and then when btc/usd rises, mathematically, alt/btc must fall, and vice versa.
3) They use the alt as a hedge against btc corrections during the rally.
Summary: Traders want to hold BTC.

During a btc crash after a bubble, alt/btc tends to move with btc. This is because
1). Investors are so bearish that they sell the alt to oversold levels because it necessary to sell btc for fiat.
2) A bearish mindset that if btc can crash then alts must be completely worthless.
Summary: Traders want to hold FIAT.

When these conditions are not met, often btc/usd does not affect alt/btc. This is because
1) Investors are not having trading reactions on one pair based on the other pair and there is no psychological reason to do this.
2) Investors realize that the value of alts rise and fall with the value of btc.
Summary: Theres no strong influence over what traders are holding.

wow, thanks for that!

[NUFCrichard]

It isn't very easy to predict short term. When bitcoin exploded above $250 all the alts were very badly hit. There are still threads lurking about LTC dying as it was about $2. Then at some random point, people decided it was time to branch out again into alts. They skyrocketed hundreds of percent.  Now we are following big brother bitcoin again, but who knows what comes next!