Quote from: gates on February 24, 2018, 07:57:01 PM

Hi guys, I understand that this question is probably obvious, but I'm wondering. What is the actual principe of Altcoin and Bitcoin relation? Why when Bitcoin price falls, Altcoin price falls too and vice versa?

It is the result of having a 2 currency that is being used in the market today. Fiat currency which is controlled by central bank/government and cryptocurrency a decentralized currency or in Layman's term called "Internet Money". Bitcoin is the most acceptable cryptocurrency that is why altcoins always relies on bitcoin price movement. Since there are new whales in the industry which trade in the market they are also have a big impact in the value of altcoin and Bitcoin. If Bitcoin goes up and altcoin goes down, it means the whales are selling only altcoin in pair with bitcoin. But if you saw that Bitcoin price is going down and altcoin is also going down, it means the whales are selling altcoins to Bitcoin and selling Bitcoin to Fiat or if there is an available pairing of altcoin vs fiat in the platform they sell it directly to fiat. When you see Bitcoin and altcoin are pumping together it means they are buying bitcoin and altcoin with fiat. That is what you call diversification.

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