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/biz/ - Business & Finance

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58394223 No.58394223 [Reply] [Original]

I think I'm retarded cause I don't get why every single crypto moves together
do people just market dump their entire portfolio when anything happens or is it all bots or something?

>> No.58394297

>>58394223
You're just extremely new (well you might be retarded in addition to being new). All alts go down when btc goes down, simple as. Because the price of all alts are tied to the btc price. All alts are chained to btc, that's why it's called a blockchain.

>> No.58394334

>>58394297
And thats why heders hash grap always wins bc its not a slavechain !

>> No.58394340

>>58394297
>Because the price of all alts are tied to the btc price
okay but why
why does everyone sell if btc goes down

>> No.58394348

>>58394297
>All alts are chained to btc, that's why it's called a blockchain
That's not why it's called a blockchain retard.

>> No.58394391

>>58394297
>that's why it's called a blockchain.
This is b8

>> No.58394397

>>58394223

Similar to how gold trusts are backed by gold, alts are backed by eth/solana/whatever network the coin was built on and eth is a trend follower to Bitcoin.

>> No.58394414

>>58394340
Fellow retard here. The way I see it is that bitcoin is still new and not well-understood, relative to other assets like stocks and bonds which have been around for centuries. When the price of bitcoin goes down, it lowers the free market confidence/ sense of legitimacy of bitcoin and thus altcoins which are even newer and less understood than bitcoin.

>> No.58394465

crypto is about 100k people with 90% of the coins and money, the rest are the stoolies....after bitcon hit 8k it was all over, its been bullshit ever since

>> No.58394795 [DELETED] 

>>58394340
>cant read
Dude. THE ALTS are CHAINED TO bitcoin. All coins are lined up on a CHAIN, each coin is in different places on the CHAIN - a chain made of BLOCKS... This is why it's called a BLOCKCHAIN, get it? It's not hard to understand. And when bitcoin goes down, it pulls on the chain so all the coins fall down with it.

>> No.58394803

>>58394340
because altcoins are a joke so if btc fails why the fuck would you expect alts to fall less

>> No.58394813

>>58394348
No he's right. The block is your head and the chain keeps your alts in the red.

>> No.58394915

>>58394795
>THE ALTS are CHAINED TO bitcoin
are you trolling lol

>> No.58394968

>>58394414
>>58394803
Look I'm mostly in BTC, but I don't buy this explanation really because it also implies the opposite. If bitcoin rises and a bunch of shitty alts follow its pump, what's the reason? It is nonsensical to assume some random alt is more legit just because BTC pumps. It doesn't seem at all intuitive either way whether bitcoin dumps or pumps and alts follow.

Maybe someone has more rational explanation, but it is pretty counter-intuitive.

>> No.58394974

>>58394795
lmao

>> No.58394988

>>58394968
BTC is confidence in all crypto to a good approximation

>> No.58395000

>>58394795
Do not listen to this retard.

>> No.58395030

>>58394988
If this is true, then if bitcoin went to zero it would perma-fuck most alts too.

>> No.58395115

>>58395030
probably yes?

>> No.58395131

>>58395030
Bitcoin will never go to zero. Despite the fact that it is quite shitty, it does have SOME value.
>It would perma-fuck most alts too.
Correct. Most alts. Not all of them.

>> No.58395173

>>58395131
Most likely all would go to zero now that I think about it. Whatever took out BTC could also take out any alt, and enough people would fear that.

>> No.58395234

this thread is perhaps the best example of /biz/ being the most retarded board. the fact that not one person was able to answer the question in OP, but so many replied and were confidently wrong with their answer.
there is actually a very common place name for what OP is asking about, but everyone would rather cling to fairytales.
>SANTA DIDN'T BRING YOUR GAINS BECAUSE YOU WERE NAUGHTY
>I left my tooth under my pillow and the tooth fairy pumped my Link!
this is what you all sound like

>> No.58395708

>>58394223
>I don't get why every single crypto moves together
Why would you expect them to move independently?

>> No.58395783

>>58395708
Um, maybe because it's not 2015 anymore and people can directly buy USDcuck coin and then buy whatever alt they want on uniswap, unlike NEEDING BTC to trade on some sketchy online exchange....

>> No.58395869

>>58395783
Who cares what currency you use to buy crypto? It's all still the same asset class, and each project is equally as useless as the next.

>> No.58396574

>>58395869
that doesn't explain why they'd move together

>> No.58396751

>>58394223
lots of bots and lots of leverage

>> No.58396813

>>58396751
What this guy said. Bots move in unison, there is simply no way that people are manually trading like this across every single alt at the same time. These charts follow eachother instantly. Further price movements might be people, but when it's instant it's bots.

>> No.58396838

>>58394223
most alt trade against btc. Say a coin is worth 2000 sats and btc goes down -10%, then the usd value of the alt is now -10% if price still 2000 sats. What usually happens is it also dumps in sats cause people want in on the btc dip, causing extra pain in usd value. Is this simple enough to understand?
This is done automatically by trading bots which are analyzing btc price 24/7, they buy and sell alts with every movement, its like lev trading btc but without liquidation risk, low liquidity altcoins do not have this, they dont move with btc

>> No.58396857

>>58394223
I mean normally you lock in your price at a high point, thats what blockchains are for. You did activate the price lock, right anon?

>> No.58396919

>>58396838
> most alt trade against btc
technically they do but for almost any altcoin on any exchange the usdt pair has much more volume and liquidity, so that's no the reason.
But yes to your second point, bots and traders simply dump their alt shares when btc goes down proportionally because there is no fundamental valuation behind any coin and btc is the emotion barometer for the crypto sphere, and the tight correlation has been historically accurate so it has been established as a rule. second is that when btc is dumping, there is little appetite of people on the sidelines to go into altcoins instead of bitcoin, so they dump even harder.

>> No.58397033
File: 104 KB, 774x866, 1712776942151881.jpg [View same] [iqdb] [saucenao] [google]
58397033

picrel

>> No.58397142

>>58394297
most altcoins just don't apply the proper shielding. wrap your tokens, people

>> No.58397172

>>58394340
Because most of the USD liquidity is in BTC.
Most alt trading pairs are tied to either BTC, USDT (which is not USD), ETH, or whatever the base currency of the DEX is.
So when trading bots rebalance their portfolio in USD value, everything moves when BTC moves.

>> No.58397191

>>58394297
>Because the price of all alts are tied to the btc price

> BTC dump 5%
> alts dump 50%

> BTC pumps 5%
> alts dump again 20%

> BTC dumps 15%
> alts pump 20%

yea right, theres no fucking rhyme or reason to any of this shit. its all jewish hedge funds and crypto exchange cartel fucking with us

>> No.58397228

------------- REAL ANSWER BELOW ---------------
Just like in stocks, a majority of volume is whales (big holders and market makers), which includes big funds and all the large exchanges (ignore for a second that this is also a lot of FAKE volume).
For example, before FTX existed Sam's fund already did 1% of ALL crypto volume world wide.

A market maker puts trade on the bid and ask side of the book and pockets the spread. Obviously in crypto, a big part of the hustle is simply offloading large quantities of worthless tokens onto retail retards. Exchanges too, either by cooperating with market makers or being market makers themselves, and market participants (how else would they turn fees into $).

All the big entities have a large part of this business automated (or cooperate, however you wanna look at it), and their algos keep prices somewhat coordinated (also pocketing some arbitrage gains).
Wall street has obviously captured the arena for a while now and a couple years back it was super obvious when they kept the market in lock step with tech stocks.
Retail ((you), biz, reddit) has absolutely no power over price in crypto anymore except for during retail mania phases (that's when whales offload btw) and in smaller under the radar projects that still have low caps and didn't have venture capital seeding. However in many of those you're at the mercy of PnD scammer groups running a similar game at smaller scale and faster pace.

This should get you started, might as well sticky this.

tl;dr yes it's all bots ran by whales.

>> No.58398170

>>58396574
You still haven't given an explanation for why you think they would move separately.

>> No.58399089
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58399089

>>58397228
thanks for the real answer

>> No.58399170

>>58394223
Don't be moron, buy when it's low and sell when it's high or jump on the ongoing MMON presale now that the price is low else yngmi.

>> No.58399432

>>58394340
the other chains will “tether up” and tow the line to the weakest link.

>> No.58399585

It’s automatic. Btc goes down, at the same time - bots sell alts and memes at a similar % rate. If people value the coin more they wont panic sell, or they may buy back in really quickly. But the automatic turndown of alts is a calculated relative strength by bots, and most coins lose their ass when king btc falls.

>> No.58400519

>>58399585
so bots control crypto or all markets?

>> No.58400764
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58400764

>>58394223
you are indeed retarded, you can't understand a basic rule about this market. No wonder you spent your money on shitcoins instead of waiting for $LRDS.

>> No.58401947

>>58400764
is this a shitcoin too though

>> No.58404199
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58404199

>>58394223
That's why true schizos move in tandem and buy retardio. You think we do it because its fun? Fuck no, but lately the prices of most shitcoins are far more predictable than your average "BTC dumped because iran launched a nuke and ww3 is about to start"

>> No.58404224

>>58400764
>>58401947
shitcoins are unbearably based because they don't align with the jew btc

>> No.58404225

>>58404199
based, schizofrenic, even

>> No.58404228
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58404228

>>58394803
>B-Buh But muh usecasepilled alts....

>> No.58404232

>>58400519
Well there's a reason why frontrunning bots were banned and that took out like 75% of the crypto community, since everyone is here to make money, everyone started doing the most efficient techniques and that led to bots being used most of the time

>> No.58404235
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58404235

>>58404199
okay you got me hooked what's the contract