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Arbitrage. Many exchanges deal only in crypto currencies, where exchange rates are relative to other coins. Price differences between both coins and exchanges
by georgyo 6y ago
Arbitrage.
Many exchanges deal only in crypto currencies, where exchange rates are relative to other coins. Price differences between both coins and exchanges create an ability for someone to make money while equalizing the market.
It also means that all coins are inevitably linked together in some way. And why obvious scam coins also follow same curves.
- fighterpilot 6y agoArbitrage isn't the fundamental explanation. There's no pure arb relationship between ETH and BTC. The real reason they're linked is for macro reasons. Hype for ETH is correlated with hype for BTC. Regulatory environment for ETH is correlated to that for BTC. Statistical arbitraguers then front run the resulting macro flows, but the core reason they're linked is the macro flows, not the arbitrageurs.