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RE: Tough Day For Cryptocurrency Markets
Hundreds of cryptocoins are trading against bitcoin, why do they all have the same pattern.
Very good question that bothers me a lot since I'm in cryptos (April). There are loads of new platforms, ideas and blockchain models, why can't they be a locomotive power of the market, why can't they let Btc to take some rest? Dependence of BTC decreased to 40% and was 30% but the hardfork is unescapable! Why? Sounds like a childish question but there's the true intonation I ask this question with :)
well, to answer your question in laymans terms, most people are in crypto now as an easy way to make a quick buck, the alt-coins fluctuate faster than BTC in % vs investment, but it's not easy to move money from alt coins directly to fiat, so they have to trade through BTC, obviously if everyone is pulling out investments from alt coins and BTC you going to see similar trends across the market. take advantage of this moment to buy as with every "correction" we tend to see a higher floor than that of the last correction so basically you are unlikely to see alt-coins at these prices again.
Thank you for deliberate answer!)
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well, it does, but it's not the driving factor on crypto projects, if you look at the effects on most of these coins, whenever progress is made the market reacts, but the market can and usually (in these cases) also "over-react" as with most new volatile investment markets people are looking at the trends only, without even bothering to look at the company, they see a familiar trend, they ride it while it's hot, set their stop losses and then pull out as soon as it starts to drop. this is where the market correction comes in, once all the pump and dumps are over, most of what you have left are the "hodlers" and when we look at the lowest value of each correction you see the true trend line which likely reflects a much more accurate value of the company, or crypto coin, this value tends to move upwards as the market grows.
Do yourself a favour, pick any good investment you have and blot the lowest points after ever major correction on a chart, then draw a line over these by month, now look at the release notes of the project as well as any events that have taken place, now label these events or release notes as either positive or negative in your opinion for the company, place these opinions over your chart and look at the base value of your project now, see if its inline with your opinion of the company then make a decision based on those findings.
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