I'm a bit confused how alt-coins values are based not just on their value, but on the value of Bitcoin or Ethereum. When ETH goes down, my alt-coin's, IOTA, value goes down . Now I am going on the final value, the value of the coin in FIAT. So the other day, IOTA went up some 3.xx% yet the value of the coin in fiat went down. . . I was confused, so I looked up the value of ETH, and it had dropped considerably (the big drop a few days back). . . I looked up the price of IOTA paired with BTC and the increase that IOTA saw when paired with ETH was not there, it was completely different.
ETH crashed = IOTA/ETH went up. BTC went sideways during that time, and it looks like IOTA/USD was fairly sideways too.
So why does the value of a crypto such as IOTA, the value in fiat, why does it depend on the value of an unrelated token such as BTC and ETH??
because the entire alt market is somewhat correlated together, and particularly with BTC. it looks like IOTA is much more dependent on BTC's price action than ETH, from looking at the daily charts side by side.
I dont understand that, why doesnt a coin stand on its own. I dont think the value of IOTA should depend on the value of ETH or BTC, thaT just doesnt make sense to me.
if the market loses faith in BTC, it loses faith in altcoins. if BTC falls, altcoins fall harder.
