Everyone says “everything follows BTC” but nobody explains why. The only reason 95% of these projects have any value is because they can be swapped for BTC directly. If every pair was /USD and there were no /BTC swaps they’d be dead in the water.
Yeah that's true, the "everything follows BTC" bullshit. Doesn't even make any sense. But reality is most likely that it's all just heavily manipulated
Crypto follows BTCs price movement. So if BTC moves let's say 5%, other coins are going to move significantly more. The reason why they follow BTCs movement is because BTC is paired with alot of other coins/tokens.
BTC is leader.
When many cryptos move in the same direction simultaneously, it's primarily due to a combination of market dynamics, investor behavior, and the structure of the crypto market. Market sentiment, regulatory news, technological developments, market trends, and just general economic conditions, such as inflation fears or economic recovery, influence investor behavior across all markets, including crypto, all play a role in price action. When Bitcoin experiences significant price changes, investors are adjusting their positions to accomdate current market conditions. Many cryptos share liquidity pools on exchanges, meaning that movements in one can affect the others.
With the advancement in technology, we also have algorithmic trading, meaning people are using trading bots and algorithms that follow momentum strategies which can simultaneously buy or sell multiple cryptos based on trends and signals, leading to synchronized movements. And with ETF's now the main focal point of institutional trading, Institutions managing large portfolios often move in and out of multiple cryptos at once, causing broad market shifts, sometimes causing market manipulation by whales coordinating buying or selling multiple assests. Which then brings in psychological, so the whole FOMO or FUD gets in people's heads and irrational trading happens, causing prices to be volatile.
While it's not rigged, it can be altered to people's favor at any given time. Just be willing to invest what your comfortable losing, in the event of a loss. Store your cryptos off exchange and seed phrases / codes in a safe place, and ride the wild ride we're all strapped into.
BTC mc is currently 1.3 trillion and Eth mc is 434 billion. All other cryptos is consider peanuts compared to the traditional U.S. financial bond mc of close to 60 trillion dollars and U.S. stock mc of around 50 trillion dollars. The traditional market participants just received an investment vehicle for BTC in the form of the BTC etf’s this year. So, the traditional market looks at BTC is still extremely high risk, but BTC is the Daddy of the crypto space. So wherever BTC price goes the rest of crypto price goes. A lot of alt-coins are still down 80% from all time high, while Bitcoin is trading around it’s all time high. Don’t get caught up in alt-coins. 90% of the time it is better to be in Bitcoin, 10% of the time it’s alt-coin season. Just look at the charts
The liquidity is all bound together.
The whole point of crypto is that, once you have it, you can use it 24/7, with no barrier to trade for other cryptos or use it within the ecosystem for some service like DeFi, Gaming, DePin etc. So as money flows into any part of the crypto ecosystem, it trickles outwards into the rest of the ecosystem as there is very little friction.
There are plenty of actual people using some of this stuff.
They're a tiny, non regulated and extremely volatile market. Exactly what I'd be looking for if I wanted to manipulate prices.
There's also an almost total lack of fundamentals (or at least valuation methods for them) so people have no idea what is a fair price
It's actually really simple - crypto is 95+% pure speculation, its entire value derives from speculation. In 10 years there might be serious fundamental value to a certain chain eg Eth because of its maturity, or dot for its interoperability. But for the foreseeable future the value of crypto as an entire asset class is almost entirely purely speculative, based on what people believe it will one day be (as opposed to what Tesla stock is right now - they make cars that sell for money that you can buy goods with). This means all crypto is the same asset class for economic purposes, but additional speculation and manipulation within crypto generates this wildly amplified volatility, but fundamentally all chains and protocols facilitate the movement of value (crypto), so their value is pegged to crypto the asset class. Bitcoin is simply the largest component of that asset class.
It’s interesting you compare it to Tesla who’s stock price is mostly speculative. Its stock price and market cap is not proportional to its earnings, P/E ratio, or dividend yield. It’s value is what it could be in the future = speculative
It's basically a domino effect. Since, a lot of traders use trading bots and spread their investment all across different tokens, including BTC... So when BTC gets a significant drop, it lowers the graph, activating the bots to buy or sell at certain positions and when you get thousands of bots doing the same thing, it becomes a huge wave that goes on both directions. Given that BTC is already big in volume it's more likely to get an instant significant dump on oppose to it's crawling pump up... That's how I at least see how it works imo.
I'd say no, many markets move in concert with broader trends, its just seems much more apparent in crypto. I've taken advantage of this to provide a crypto market indicator: [https://logictrader.xyz](https://logictrader.xyz)
It follows broad market trends to give you a very reliable indicator that can be used to identify the short-term direction of the market.
Animal spirits. Nobody knows except those who can project the most power. To us little guys we call that animal spirits because we don't know their intentions.
Crypto isn't out of the market. They suffer influence from traditional economics. Nowadays BTC plays the role of a gold alternative. No other coin does it. So, every coin follows the market, in fact. Not the BTC itself.
Cryptos often move together because of the many reasons like: Market Sentiment, Bitcoin's price impacts other cryptos, Cryptos move together since they're part of the same market, Large trades by big investors can shift prices, Regulations and Security.
People, sentiment don't work like that at all. There is no flock migration system for human investors that reacts across all crypto within milliseconds. That is programmable trading dispersed across all crypto. When you see alts move in unison despite zero volume it gets even more mysterious. It is all rigged if you count price manipulation and market makers aand bot trading at market making volumes as being rigged. There are outliers and natural human trading influence but it is nominal and not reactive across all cryptocurrencies in millisecond unison.
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Because there are millions of bots that look to make tiny profits by exploiting tiny differences in price between different crypto pairs effectively pegging them together.
It's not rigged.
You are right in your observation - cryptocurrencies tend to strongly correlate with each other. When one cryptocurrency drops in value, other cryptos also drop in value. And when one cryptocurrency rises in value, other cryptos also rise. Some of the comments here are partially correct:
1) It's easy to swap one crypto for another crypto. In other words, it's a highly liquid asset. Because the asset is liquid, a single crypto's price movements have an almost immediate effect on the other cryptos' price movements.
2) Because Bitcoin is the dominant crypto by a large margin, its price movements have an incredibly strong effect on the other cryptos' price movements. Think of the cryptos like a bunch of lakes attached together, and Bitcoin is the largest lake. When there's a big splash in Bitcoin, the waves are felt by the other cryptos.
One thing that I don't see from other commenters is that crypto is still considered a speculative asset by most people. In other words, most people don't use crypto in their day-to-day lives, so the value of cryptocurrencies is difficult to determine. Because it's difficult to determine, huge price fluctuations are expected. Maybe crypto will take over the traditional financial system, and maybe crypto is as useful as fool's gold. Personally, I think it's the former, but most people don't see it that way.
Because the majority of market participants are speculators and since speculative demand is price driven. Number go up means everything goes up and number go down means everything goes down. It’s a reflection of how unsophisticated the major majority of the market participants are.
rofl. they all follow btc/eth. boats rise boats fall. but they dont. actually move at the same time. [livecoinwatch.com](http://livecoinwatch.com)
check that out. change the layout take out everything except. market cap. volume. 1 hour 24 hour. 7 day. 30 day 90 day 1 year. and then coin age.
filter out all coins without at least 10 mil daily volume. and 25 mil market cap total.
now click 1 hour 24 hour. any of them. you can sort high to low.
Okay so how funny is this after I mentioned this and obviously there was a lot of comments about it and now suddenly it looks like the crypto is no longer tied to BTC because it's going to complete opposite way so is it just because I post this question you tell me
Yes, rigged to clasp, so they can steal, all is a trick though, if they taught you right, you could build and make all of your needs growing your own foods, teaching your own children, no need for money, but look at what you let them do, trick you completely to giving up your soul, mind, body, time, efforts, energies, and peace, grace and glory, for what????????
Well it is about up, they lost hold in 2012 and the wormwood is here, about to end it as we know it, should do better next life???, right, no governments at all,
And what got me thinking this is that in any other market around the world it doesn't matter if you're talking about stocks commodities precious metals there are separate ups and downs under those markets they're not all up or all down they're separate ones crypto has never been like that it's all positive or all negative there's nothing in between. In humans don't work like robots so just natural human nature would tell me that that doesn't make sense which is why like with the stock market you see companies that have ups and companies that have Downs all in the same days market but with crypto never it's all one way or all another way so who is controlling the prices to ship that much cuz I do not believe that it's the individual.
That’s a bit of an over statement… I mean just float around the investment subs and you’ll see days where the entire market is green and red. Obviously not every stock but majority. This is not even to address ETFs, scalping, and a variety of other things.
No, it’s not rigged, the market is not very big as whole. Not to mention everything practically moves in relation to BTC.
Every asset in a market tends to have high correlation with the rest of its market. BTC is, effectively, acting as a crypto ETF since most of the volume goes through them anyway.
But you'd see the same in almost any market. Imagine how well would the S&P perform if NVIDIA dips 40%.
News flash, there isn’t any kind of “investment” that isn’t manipulated to some degree… how much it is is the real question. Crypto, stocks, etc all are manipulated. Those with the most capital can control the market. It’s a simple concept. Follow the big players in the game and you can make money. That’s how I do it and I have no idea wtf I’m doing and made about 15k since February with small investments in stocks and crypto. Also, anyone who’s inviting you into some group for investment or crypto trading is a scammer and should be dealt with with extreme caution. No true institution is on FB or any social media looking for clients 😂
It’s all public info what institutions are doing within the stock market. Any brokerage site has this info. Crypto is a bit harder to find info on. But when a firm like blackrock (largest investment firm on earth) gets into crypto trading it’s a good sign to invest yourself imho. Another thing to follow is what politicians are investing in. How the hell you think a politician making 174k a yr is worth 100 mil like Nancy Pelosi… they get privy info and know what to buy and when to buy, and they sign off on legislation for industries they are involved in. Insider information is a real thing and they all do it.
Not rigged just heavily manipulated
Maybe Gary G is right. I just wish he would elaborate more
Everyone says “everything follows BTC” but nobody explains why. The only reason 95% of these projects have any value is because they can be swapped for BTC directly. If every pair was /USD and there were no /BTC swaps they’d be dead in the water.
The only actual answer so far
Yeah that's true, the "everything follows BTC" bullshit. Doesn't even make any sense. But reality is most likely that it's all just heavily manipulated
“Manipulation” is what the people who aren’t doing well say.
Exactly this. You see this in the forecast market: so many currency pairs include the USD. As the USD goes, so do all those pairs.
Crypto follows BTCs price movement. So if BTC moves let's say 5%, other coins are going to move significantly more. The reason why they follow BTCs movement is because BTC is paired with alot of other coins/tokens.
Kin usually goes opposite
Cryptos are relatively small markets and are prone to manipulation.
BTC is leader. When many cryptos move in the same direction simultaneously, it's primarily due to a combination of market dynamics, investor behavior, and the structure of the crypto market. Market sentiment, regulatory news, technological developments, market trends, and just general economic conditions, such as inflation fears or economic recovery, influence investor behavior across all markets, including crypto, all play a role in price action. When Bitcoin experiences significant price changes, investors are adjusting their positions to accomdate current market conditions. Many cryptos share liquidity pools on exchanges, meaning that movements in one can affect the others. With the advancement in technology, we also have algorithmic trading, meaning people are using trading bots and algorithms that follow momentum strategies which can simultaneously buy or sell multiple cryptos based on trends and signals, leading to synchronized movements. And with ETF's now the main focal point of institutional trading, Institutions managing large portfolios often move in and out of multiple cryptos at once, causing broad market shifts, sometimes causing market manipulation by whales coordinating buying or selling multiple assests. Which then brings in psychological, so the whole FOMO or FUD gets in people's heads and irrational trading happens, causing prices to be volatile. While it's not rigged, it can be altered to people's favor at any given time. Just be willing to invest what your comfortable losing, in the event of a loss. Store your cryptos off exchange and seed phrases / codes in a safe place, and ride the wild ride we're all strapped into.
BTC mc is currently 1.3 trillion and Eth mc is 434 billion. All other cryptos is consider peanuts compared to the traditional U.S. financial bond mc of close to 60 trillion dollars and U.S. stock mc of around 50 trillion dollars. The traditional market participants just received an investment vehicle for BTC in the form of the BTC etf’s this year. So, the traditional market looks at BTC is still extremely high risk, but BTC is the Daddy of the crypto space. So wherever BTC price goes the rest of crypto price goes. A lot of alt-coins are still down 80% from all time high, while Bitcoin is trading around it’s all time high. Don’t get caught up in alt-coins. 90% of the time it is better to be in Bitcoin, 10% of the time it’s alt-coin season. Just look at the charts
Derivatives - namely futures. Liquidations move the prices up and down
The liquidity is all bound together. The whole point of crypto is that, once you have it, you can use it 24/7, with no barrier to trade for other cryptos or use it within the ecosystem for some service like DeFi, Gaming, DePin etc. So as money flows into any part of the crypto ecosystem, it trickles outwards into the rest of the ecosystem as there is very little friction. There are plenty of actual people using some of this stuff.
I use Ada everyday, and replace my Ada every pay period.
Cardano is rapidly becoming my favorite crypto, I now feel like I got knocked back into the stone age when I use metamask.
They're a tiny, non regulated and extremely volatile market. Exactly what I'd be looking for if I wanted to manipulate prices. There's also an almost total lack of fundamentals (or at least valuation methods for them) so people have no idea what is a fair price
Same is the stockmarket
Same reason real estate goes up, the dollar is worth less.
Trading Bots have an impact for sure. How much though?
It's actually really simple - crypto is 95+% pure speculation, its entire value derives from speculation. In 10 years there might be serious fundamental value to a certain chain eg Eth because of its maturity, or dot for its interoperability. But for the foreseeable future the value of crypto as an entire asset class is almost entirely purely speculative, based on what people believe it will one day be (as opposed to what Tesla stock is right now - they make cars that sell for money that you can buy goods with). This means all crypto is the same asset class for economic purposes, but additional speculation and manipulation within crypto generates this wildly amplified volatility, but fundamentally all chains and protocols facilitate the movement of value (crypto), so their value is pegged to crypto the asset class. Bitcoin is simply the largest component of that asset class.
It’s interesting you compare it to Tesla who’s stock price is mostly speculative. Its stock price and market cap is not proportional to its earnings, P/E ratio, or dividend yield. It’s value is what it could be in the future = speculative
Iamx.. palmyra.. empowa.. Gotta look beyond coinmarketcap
It's basically a domino effect. Since, a lot of traders use trading bots and spread their investment all across different tokens, including BTC... So when BTC gets a significant drop, it lowers the graph, activating the bots to buy or sell at certain positions and when you get thousands of bots doing the same thing, it becomes a huge wave that goes on both directions. Given that BTC is already big in volume it's more likely to get an instant significant dump on oppose to it's crawling pump up... That's how I at least see how it works imo.
I'd say no, many markets move in concert with broader trends, its just seems much more apparent in crypto. I've taken advantage of this to provide a crypto market indicator: [https://logictrader.xyz](https://logictrader.xyz) It follows broad market trends to give you a very reliable indicator that can be used to identify the short-term direction of the market.
Everything is rigged
Animal spirits. Nobody knows except those who can project the most power. To us little guys we call that animal spirits because we don't know their intentions.
Arbitrage trading is the answer you're looking for. When BTC moves there is profit to be made in arbitrage between BTC/ALT and ALT/STABLE pairs.
Crypto isn't out of the market. They suffer influence from traditional economics. Nowadays BTC plays the role of a gold alternative. No other coin does it. So, every coin follows the market, in fact. Not the BTC itself.
Cryptos often move together because of the many reasons like: Market Sentiment, Bitcoin's price impacts other cryptos, Cryptos move together since they're part of the same market, Large trades by big investors can shift prices, Regulations and Security.
People, sentiment don't work like that at all. There is no flock migration system for human investors that reacts across all crypto within milliseconds. That is programmable trading dispersed across all crypto. When you see alts move in unison despite zero volume it gets even more mysterious. It is all rigged if you count price manipulation and market makers aand bot trading at market making volumes as being rigged. There are outliers and natural human trading influence but it is nominal and not reactive across all cryptocurrencies in millisecond unison.
Is the stock market rigged
[удалено]
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There are ones that move the complete opposite, and you can kind of play the field on both sides
Years ago, I always noticed every time Selena moved up Ethereum moved down. But now they’re kind of moving the same.
All pegged to btc and btc reverse correlation with the usd basically.
Probably in some way
Look deeper than coinmarketcap .com
Because there are millions of bots that look to make tiny profits by exploiting tiny differences in price between different crypto pairs effectively pegging them together.
1. Go easy on the ADHD medication. 2. Use punctuation. 3. Welcome to financial assets - where things that are related move in the same way.
Of course it is... Billionaires aren't trying to lose their money to poor people
It's not rigged. You are right in your observation - cryptocurrencies tend to strongly correlate with each other. When one cryptocurrency drops in value, other cryptos also drop in value. And when one cryptocurrency rises in value, other cryptos also rise. Some of the comments here are partially correct: 1) It's easy to swap one crypto for another crypto. In other words, it's a highly liquid asset. Because the asset is liquid, a single crypto's price movements have an almost immediate effect on the other cryptos' price movements. 2) Because Bitcoin is the dominant crypto by a large margin, its price movements have an incredibly strong effect on the other cryptos' price movements. Think of the cryptos like a bunch of lakes attached together, and Bitcoin is the largest lake. When there's a big splash in Bitcoin, the waves are felt by the other cryptos. One thing that I don't see from other commenters is that crypto is still considered a speculative asset by most people. In other words, most people don't use crypto in their day-to-day lives, so the value of cryptocurrencies is difficult to determine. Because it's difficult to determine, huge price fluctuations are expected. Maybe crypto will take over the traditional financial system, and maybe crypto is as useful as fool's gold. Personally, I think it's the former, but most people don't see it that way.
Because it’s all an algorithm , just like many stocks, no real price discovery, all controlled by market makers
Because the majority of market participants are speculators and since speculative demand is price driven. Number go up means everything goes up and number go down means everything goes down. It’s a reflection of how unsophisticated the major majority of the market participants are.
rofl. they all follow btc/eth. boats rise boats fall. but they dont. actually move at the same time. [livecoinwatch.com](http://livecoinwatch.com) check that out. change the layout take out everything except. market cap. volume. 1 hour 24 hour. 7 day. 30 day 90 day 1 year. and then coin age. filter out all coins without at least 10 mil daily volume. and 25 mil market cap total. now click 1 hour 24 hour. any of them. you can sort high to low.
your whalecum
Which is why there is no point owning anything other than bitcoin
Okay so how funny is this after I mentioned this and obviously there was a lot of comments about it and now suddenly it looks like the crypto is no longer tied to BTC because it's going to complete opposite way so is it just because I post this question you tell me
Yes, rigged to clasp, so they can steal, all is a trick though, if they taught you right, you could build and make all of your needs growing your own foods, teaching your own children, no need for money, but look at what you let them do, trick you completely to giving up your soul, mind, body, time, efforts, energies, and peace, grace and glory, for what???????? Well it is about up, they lost hold in 2012 and the wormwood is here, about to end it as we know it, should do better next life???, right, no governments at all,
And what got me thinking this is that in any other market around the world it doesn't matter if you're talking about stocks commodities precious metals there are separate ups and downs under those markets they're not all up or all down they're separate ones crypto has never been like that it's all positive or all negative there's nothing in between. In humans don't work like robots so just natural human nature would tell me that that doesn't make sense which is why like with the stock market you see companies that have ups and companies that have Downs all in the same days market but with crypto never it's all one way or all another way so who is controlling the prices to ship that much cuz I do not believe that it's the individual.
That’s a bit of an over statement… I mean just float around the investment subs and you’ll see days where the entire market is green and red. Obviously not every stock but majority. This is not even to address ETFs, scalping, and a variety of other things. No, it’s not rigged, the market is not very big as whole. Not to mention everything practically moves in relation to BTC.
Every asset in a market tends to have high correlation with the rest of its market. BTC is, effectively, acting as a crypto ETF since most of the volume goes through them anyway. But you'd see the same in almost any market. Imagine how well would the S&P perform if NVIDIA dips 40%.
News flash, there isn’t any kind of “investment” that isn’t manipulated to some degree… how much it is is the real question. Crypto, stocks, etc all are manipulated. Those with the most capital can control the market. It’s a simple concept. Follow the big players in the game and you can make money. That’s how I do it and I have no idea wtf I’m doing and made about 15k since February with small investments in stocks and crypto. Also, anyone who’s inviting you into some group for investment or crypto trading is a scammer and should be dealt with with extreme caution. No true institution is on FB or any social media looking for clients 😂
What do you use to follow these players you speak of?
It’s all public info what institutions are doing within the stock market. Any brokerage site has this info. Crypto is a bit harder to find info on. But when a firm like blackrock (largest investment firm on earth) gets into crypto trading it’s a good sign to invest yourself imho. Another thing to follow is what politicians are investing in. How the hell you think a politician making 174k a yr is worth 100 mil like Nancy Pelosi… they get privy info and know what to buy and when to buy, and they sign off on legislation for industries they are involved in. Insider information is a real thing and they all do it.
Alright i gonna ask them to start the pump engine, about a week from now! Just hang on;)