Bitcoin Rockets and Paranoia is Setting in Among Many of My Fellow AltCoin Holders.
A few weeks ago someone asked me why the altcoins tend to lose value in Bitcoin terms and USD when the price of Bitcoin rises. In today's case this is true. There are three types of scenarios.
- Bitcoin rises and altcoins rise with it as the whole market cap goes up. This is what we saw throughout the first half of the year. During this type of market everyone is a winner.
- Bitcoin rises and altcoins dip due to big news in Bitcoin. This is what we are seeing now as Bitcoin is working through its problems and the community is scrambling to buy Bitcoin so that they can get free BCC (Bitcoin Cash). I dub this effect, "The Bitcoin Rubberband Effect".
- Altcoin fever sets in when Bitcoin volatility gets boring.
The Bitcoin Rubberband Effect.
When Bitcoin rises quickly due to some exciting news FOMO sets in and the community jumps on the Bitcoin bandwagon. The price will shoot up to crazy highs before settling. Then as the Bitcoin market slows down the whales in crypto will look for other places to profit. As soon as experienced traders see this they will also move their Bitcoin profits into altcoins. This is when big money is made. Altcoins will rise quickly and regain their positions relative to Bitcoin. This is when it gets very exciting in Crypto Currency markets.
Remember, when everyone else is going in one direction it is best to sneak in and get some amazing deals. The question is what is more fun, speculating on BCC (Bitcoin Cash) or knowing a fat payday is coming whether Bitcoin Cash is successful or not? My bet is on the altcoin market so I am not participating in this Bitcoin run up.
If You Think What is Happening in the Crypto Markets is Odd, This is For You!