Post
Topic
Board Altcoin Discussion
Re: bitcoin prices go down, why altcoins prices also go down?
by
jc89
on 27/05/2018, 15:37:40 UTC
I want to ask you all, why if bitcoin price goes down, altcoins price also come down, what is alcoin-price bitcoin, please give me your answer.

When Bitcoin's price increases, altcoins' prices follows. When Bitcoin's price decreases, the price of altcoins follows as well. This is happening because the price or value of all altcoins out there is linked to Bitcoin and not to fiat. If you could notice in all exchanges they have this so called "Market". Let us take ETH for instance. If you want to buy/sell ETH in BTC Market (ETH/BTC), the price is in terms of BTC (i.e. 1 ETH = 0.1 BTC). So if the value of 0.1 BTC now is $700 then 1 ETH = $700, after a day the value of 0.1 BTC went down to $600 then the value of 1 ETH would be $600 as well (saying that the conversion factor of 1 ETH = 0.1 BTC does not change).

This is well explained answer. This is correct. Since altcoins are linked to Bitcoin then the price of altcoins depends on Bitcoin. Bitcoin is the cryptocurrency that has a direct conversion to fiat (other major coins are also convertible to fiat directly, however, they are also connected to Bitcoin so Bitcoin is the main catalyst here). I think there is no more info to add to the above's instance, as it is a self-explanatory instance (in my perception).