Post
Topic
Board Trading Discussion
Re: How can all (or most) cryptocurrencies rise and fall at the same time?
by
Mauser
on 16/07/2022, 14:01:34 UTC
The price and, ultimately, the charts on any given exchange are determined by the price of the most recent transaction. How can the prices of 100s of cryptos all move in the same direction at the same time?

This is what you call market risk in the crypto market and it determines most of the prices changes. It doesn't really matter which exchange you look at because they are all connected, there can't be two different prices for one crypto coin on different exchanges. If that was the case traders could just buy the coin on one exchange and sell it on other to make a free profit. The market risk is also what makes most stock prices move. Stocks are highly correlated to each other, like crypto currencies. If blue chip stocks drop, so will also the small cap companies. In the crypto world we can see that when the bitcoin is falling then all the alt coins are also falling.