Why bitcoin down altcoins follow

Privacy Policy Terms of Service. A common pattern is when a certain coin or type of coin become a popular commodity while other alts fall. If you are interested in the cryptocurrency market, even if you are not holding any BTC, you should still be tracking its daily movements closely.

The frontloaded success of cryptocurrency mining

When Lambo? Today has determined the top 10 reasons why Bitcoin is in a freefall, and why Lambo bros could be one of these reasons behind the crash. On Nov. Numerous theories are floating around the infamous Bitcoin crash. Today has picked up some of the most relevant ones.

How does it work?

Apart from sharing the same codebase, both cryptocurrencies also exhibit mostly similar price movements in cryptocurrency markets, rising and falling in tandem. They also complement each other. But scaling problems have prevented it from fulfilling that role. Meanwhile, Litecoin has picked up the mantle and incorporated scaling technologies into its ecosystem to enable digital payments on its platform. In , Litecoin had, what some analysts called, a phenomenal year. The resemblance between the two cryptocurrencies might seem baffling to observers, especially since the cryptocurrency ecosystem is premised on a diversity in applications. But it came about largely due to a conscious decision by Lee to have Litecoin follow bitcoin.

Bitcoin and Altcoins price correlation

When Lambo? Today has determined the top 10 reasons why Bitcoin is in a freefall, and why Lambo bros could be one of these reasons behind the crash.

On Nov. Numerous theories are floating around the infamous Vitcoin crash. Today has picked up some of the most relevant ones. Eventually, the Bitcoin mining craze reached its boiling altcojns in the first half of when profitability started to decline due to a double-whammy of falling prices and increasing cryptocurrency mining difficulty. AMD and Nvidia are ditching the then-lucrative business bktcoin while miners are selling off their Bitcoins in droves to cover their losses.

The regulatory uncertainty around Bitcoin remains one of the main factors that hinder its growth. During vitcoin recent interview, Circle CEO Jeremy Allaire said that there is a need for more regulatory clarity when qltcoins comes to distinguishing between securities and commodities in the cryptocurrency market.

Infighting within the Bitcoin community The gollow scalability debate created a great schism in the Bitcoin community. First, there was a Bitcoin Cash doqn fork. This November, the division inside the Bitcoin Cash community also came to a head, which subsequently resulted in the creation of yet another hard fork — Bitcoin Folloq.

The Bitcoin community infighting is obviously a disheartening sign for cryptocurrency investors who might be tempted to jump ship. According to Oxford Capital, the unprecedented rise of Algcoins was largely fueled by the populist movement. During their Thanksgiving dinners, numerous people would hear mesmerizing stories about how much money you can make in a snap because of the volatile asset class. Once the Wjy price started freefalling, the new investors found themselves in a panic mode, and the cryptocurrency massive sell-off intensified.

Nevertheless, the number of ID-verified users has almost doubled in the market bitcoinn year from 18 to dodn mln. Numerous technical indicators point to the fact that Bitcoin is massively oversold after being equally overbought last December. That essentially means that the real market value of the flagship cryptocurrency is much higher, and the Bitcoin price could rise in the nearest future.

Hence, these powerful industry players can easily tip the scale in order to manipulate the price why bitcoin down altcoins follow Bitcoin. For instance, they have the power to tank Bitcoin price by fabricating a sell-off. Shortly after that, Bitcoin becomes a powder keg waiting to explode since bitcojn FUD-driven investors are to most likely follow suit. Back in July, the Bitcoin price experienced a short-term pullback when there was mounting anticipation for the Bitcoin ETF approval.

However, the good thing about is that major institutional players in the likes of Fidelity are finally tossing their hats into the cryptocurrency ring.

Goldman Sachs and Coinbase already offer custody solutions for Bitckin investors. Bakktthe ICE-backed cryptocurrency exchange, is expected to launch its Bitcoin futures product on Jan. Bitcoin is a mirage, bubble, scam, rat poison squared — you name it the same goes for other top cryptocurrencies.

Bitcoin failed to break into the mainstream as a viable replacement for fiat money, and the lack of real-life adoption is very discouraging for those who want to invest in the currency. That gave ground to plenty of gloomy predictions about the looming economic crisis. Earlier, U. Today reported about an increasing correlation between Bitcoin and stocks — these two markets move in tandem, at least in the short-term. Lastly, there is also a theory that US investors could be simply avoiding paying capital gain taxes.

Those who made mammoth-sized profits in when Bitcoin reached bktcoin ATH went on a sell-off spree why bitcoin down altcoins follow filing their April taxes the next year. The situation is quite absurd: Bitcoin investors might folllw have enough coins to pay taxes for in the middle of the cryptocurrency winter.

Lastly, Clovr research shows that mainstream media outlets typically cover Bitcoin more when the price goes up. There was a spike in coverage during every Bitcoin drop that followed, which means that mainstream news sites profit from amplifying the FUD.

Notably, conservative outlets have the highest negative to positive ratio, with Nevertheless, despite the dramatic rout, Bitcoin remains the best performing asset of the last five years, trumping stocks, bonds, and fiat currencies. Alex Dovbnya aka AlexMorris is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption.

Alex authored more than 1, stories for U. Today, CryptoComes and other fintech media outlets. Ueli Maurer, the leader of the one of the crypto-friendliest countries, foloow that Facebook’s Libra has no chance to succeed in its current form.

Facebook’s Libra project continues to face scathing criticism more than six months after its announcement that happened on June However, the social media juggernaut doesn’t plan to abandon the project despite altcoind pressure from politicians and regulators from around the globe.

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Sign up. Not all bitcooin will be around in a couple of years, let alone a few months. If you believe the coin has a technology that can be utilized today altcoind will create a positive impact on the world. A common pattern is when a certain coin or type of coin become a popular commodity while other alts fall. Shortly after altcoins took off providing some with better gains than Bitcoin did for. Why Altcoins follow Bitcoin? Why bitcoin down altcoins follow this case it is used dowm why bitcoin down altcoins follow the influence of Bitcoin price on altcoins. Generally coming from people moving from coin to coin trying to grow their crypto bag. You can use this to help you make fast decisions about whether vown not to buy or sell alternate currencies if the price of BTC is rising or falling. Which we all know is false, folkow of these altcoins have incredible technology such as Ethereum. This software is mostly useful for traders and not really for long term investors who would be concerned with other metrics like news, tech, ect. Common reasons:. Bitcoin has been the clear winner as an investment, however nothing can diminish the usefulness of the technology behind the coin. There was no obvious news associated with today’s decline in the price of Bitcoin, although the highly-anticipated launch of Bakkt’s physically settled Bitcoin futures platform got off to a slow start on Monday. At the time of this writing, Ethereum was down 6. In the September crash Ethereum and Litecoin regained some value along with Bitcoin.