The Bitcoin and Crypto Currency Rubberband Effect.
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!
The more I watch coinmarketcap the more random movements appears.
be careful some things always work until they don't
History is our friend.
Pretty spot on with what we all have been experiencing with Bitcoin and Altcoin. Let see what happens as we get closer and closer to August 1st.
Bitcoin all time high is my guess and then BOOM! It will drop.
the way i see it bitcoin is like the reserve currency for crypto's of the world. all the other crypo's are like individual country's currency.
This is kind of strange, that altcoins fall, when Bitcoin rise. In my opinion BCC( Bitcoin cash) is trash. It will be interesting to see what happens after 1st August. I bet that it will be positive overall for Bitcoin.
a very confusing time in crypto world.putting some bitcoin into cold storage and the rest will invest in some in promising altcoins.nice share
IMHO I'm suspecting that people are dumping their alts to get into bitcoin to profit from BCC and that's what has been fueling the BTC price rise lately and it explains the drop in most alts we are seeing today
If it's the case then we might see more BTC strength and more alts weakness until Aug 1st when people will be taking profit by selling BCC and may be reentering the alts market
That's exactly what I'm planning to do, holding my BTC until the 1st then buying back all the alts I use to own (I sold all my alts for BTC earlier this month)
Hey brother...not a fan of this new coin, and I am in agreement it is going to be another ETC. I am not buying any extra BTC right now to get any BCC, right now I am scooping up some of my alt coins that have dropped in price while everyone else is chasing this BTC/BCC fork.
That is essentially what I am doing. I might add a short on Bitmex about 6 hours before the fork.
Buy Low sell High......... buy the rumor, sell the news I don't know why so many people tend to do the opposite...... they lose money that way.
Wow, very informative article. I often wonder how those types of spikes happen. Always good to learn more about the world of cryptocurrency; I am totally new! That GIF is for me - lol.
It is weird this time because of the Bitcoin fork.