'Now, what y'all wanna do?
Wanna be ballers, shot callers, brawlers'
With 'the rise the cryptocurrencies' in recent weeks, it is easy to get carried away and forget the sentimental dominance of Bitcoin in the market. In today's video I discuss the important of factoring in the performance of bitcoin when analysing any gains or losses in the crypto market.
Take home points
- try to analyse the satoshi performance of coin. I.e. who it is doing relative to Bitcoin. It tends to mean more than just looking at the dollar price
- there is a tendency for other cryptos to suffer when bitcoin is super volatile
- other cryptos tend to pump more when bitcoin is 'boring' (stable)
Don't get it twisted, it's still 'Bitcoin vs Everything else'
I always like to say (as of today, January 2018), it is 'Bitcoin versus everything else' when it comes to the markets. Whatever you think of the technical merits of bitcoin, the market sentiment (in my mind is clear). When push comes to shove; Bitcoin trumps everything. I'm saying it will always be that way. Indeed, the next crunch point might be the moment it changes. However when Bitcoin makes a big move (either up or down) most other cryptos tend to wilt. No other coin has managed to decouple itself from Bitcoin.
So my advice is whatever you think of Bitcoin, you need to respect it and understand what it's doing at any given moment in time. Particularly if you're trading or looking to get in or out of a coin.
However as always this isn't financial advice, just observations have made other the years.