Alt-coin BTC correlation.

[Cryptomoonlambo]

About a year ago during the bull run there was a very clear correlation between Alts and BTC, one would go up, the other would go dow. Why is this and what has changed?

[batang_bitcoin]

Sometimes its inversely proportional and sometimes its directly proportional.

That's the relationship of bitcoin and alts and another one from what I've read is when bitcoin dominance's increases, alts are suffering.

[antsam]

For now, I see that both are falling even though the price of altcoins is very badly decreasing in price. BTC and Altcoin do have links but at the moment I see almost no changes

[NeuroticFish]

About a year ago during the bull run there was a very clear correlation between Alts and BTC, one would go up, the other would go dow. Why is this and what has changed?

An idea would be that the "investors" have left Bitcoin and the one remaining are HODLers, now they're leaving the altcoins (although much later than expected).
But in truth, I don't think that anyone has a clear picture of what is happening.

[eagle10]

About a year ago during the bull run there was a very clear correlation between Alts and BTC, one would go up, the other would go dow. Why is this and what has changed?

An idea would be that the "investors" have left Bitcoin and the one remaining are HODLers, now they're leaving the altcoins (although much later than expected).
But in truth, I don't think that anyone has a clear picture of what is happening.

Every year when bitcoin is hitting its low it is still the same drama, they are leaving bitcoin, bitcoin is dead, bitcoin is a big scam.. come on, give bitcoin a break. HODLERs will be the biggest winners. We'll see that in time when the market turns green.

[NeuroticFish]

Every year when bitcoin is hitting its low it is still the same drama, they are leaving bitcoin, bitcoin is dead, bitcoin is a big scam.. come on, give bitcoin a break. HODLERs will be the biggest winners. We'll see that in time when the market turns green.

I *know* that HODLers will be the winners on long term. That's why I wrote investors between quotation marks. However, the current discussion/drama is about the altcoins getting much lower than many could have expected (excepting Dogecoin!)

[Bencus]

Because trade into each other. If an Alt goes up, people will sell it into BTC, as it is the "local dollar", something what everything trades into. So this is why they correlate.
However, USD pairs in more exchanges have appeared. This might cause the correlation to be looser, but in my opinion this is only a small percentage.

[ChrisPop]

Now you can observe that alts are following Bitcoin's behaviour. The honeybadger is dragging them up or down. That is simply because Bitcoin has the main attention of the public and investors.. so if they see weakness in it they sell altcoins as well. BTC acts as a monitor for crypto market strength nowadays, so you might wanna guide your trading based on that.

[leea-1334]

About a year ago during the bull run there was a very clear correlation between Alts and BTC, one would go up, the other would go dow. Why is this and what has changed?

Actually,,, there were 3 correlative patterns, not just the one you mentioned. The first is as you describe, the second is described by the first response to you which also points out the inverse correlation sometimes witnessed. And finally, there are also periods where no movement is happening with alts while BTC goes up or down a lot.

1, BTC goes up/down and alts follow. This is the general correlation, because crypto = BTC. If BTC does well, then in general alts go up, sometimes more so than BTC and if BTC has bad news, confidence is worse in alts.
2, BTC goes up/down and alts do the opposite. This is less usual, but happens because when people buy alts, it is generally in favor to BTC. Indirectly, choosing alts over BTC pushes their demand and price.
3, BTC moves and alts do not. This is the least usual and is just when BTC is being crazy or manipulated

[peter0425]

About a year ago during the bull run there was a very clear correlation between Alts and BTC, one would go up, the other would go dow. Why is this and what has changed?

No, I don't see any price correlation between alts and bitcoin so its not always that case. What I see is just funds moving around the market, simply as that. No direct or indirect correlation, everyone shifts to where the money is. And maybe it has changed because the market has adjustment as well, we are in the bear season, unlike last year's exponential growth. What's important is how to see and make the best of out this trends. Don't get yourself attached to this correlation because its just a coincidence, in my opinion.