4 ms·

deleting due to quality of replies

by dustingetz 5y ago

globular-toast 5y ago
They all have the same value, ie. not much.
throwaway4good 5y ago
They are all linked and deeply correlated to Bitcoin. Also happens in the other direction.
uberdru 5y ago
Thinly traded, purely speculative markets, with very few, highly concentrated holdings, running on completely untested, largely unregulated exchanges, with no SLAs, middlemen, customer support, etc. . .
xienze 5y ago
Take a look at the top 100 charts at any random time of day. They’re almost all carbon copies of the BTC chart.
BLanen 5y ago
Because there are no fundamentals.
liuliu 5y ago
Alternative theory: USDT is actually down by 40% but the current peg is artificially supported by restricting trades (with USD).
dcolkitt 5y ago
Assets in the same asset class tend to move together, especially during market crashes. Same exact thing happens with stocks during periods like 2008. In finance speak, we say “correlations go to 1”
deleted 5y ago
[deleted]
jerf 5y ago
There's a lot of correlation between them as they're all riding the same "cryptocurrency" wave. In fact I think you could turn that into a partial numerical measure of the crypto market. In a mature market where "cryptocurrenciness" is mostly just a fact of life, they ought to be less correlated as they have independent lives of some sort. (They'll never be completely uncorrelated, of course, since the whole market is correlated to some degree.) Right now it's still enough of a novelty that the mere fact of cryptocurrenciness is a big percentage of the appeal of a given cryptocurrency.
kllrnohj 5y ago
Likely related to the China news: https://www.reuters.com/technology/chinese-financial-payment-bodies-barred-cryptocurrency-business-2021-05-18/ https://www.reuters.com/technology/chinese-financial-payment... Estimates put 65-75% of BTC mining in China. That just became a pretty shaky foundation.
spamizbad 5y ago
Crypto holding steady; USD is in a deflationary spiral /s
shp0ngle 5y ago
People don't differentiate really between cryptos, they just randomly throw their money around and call it "portfolio" All cryptocurrencies are basically the same and indistinguishable and fulfill the same needs.
marcosdumay 5y ago
Every time a miner post something here or on Reddit, they are mining one coin and immediately trading into another. The same for the exchanges, that keep reserves in a lot of them, and trade one for the other all the time to keep their ratio. It's not unexpected that they are correlated.

deleting due to quality of replies

globular-toast 5y ago

They all have the same value, ie. not much.

throwaway4good 5y ago

They are all linked and deeply correlated to Bitcoin. Also happens in the other direction.

uberdru 5y ago

Thinly traded, purely speculative markets, with very few, highly concentrated holdings, running on completely untested, largely unregulated exchanges, with no SLAs, middlemen, customer support, etc. . .

xienze 5y ago

Take a look at the top 100 charts at any random time of day. They’re almost all carbon copies of the BTC chart.

BLanen 5y ago

Because there are no fundamentals.

liuliu 5y ago

Alternative theory: USDT is actually down by 40% but the current peg is artificially supported by restricting trades (with USD).

dcolkitt 5y ago

Assets in the same asset class tend to move together, especially during market crashes. Same exact thing happens with stocks during periods like 2008. In finance speak, we say “correlations go to 1”

deleted 5y ago

[deleted]

jerf 5y ago

There's a lot of correlation between them as they're all riding the same "cryptocurrency" wave. In fact I think you could turn that into a partial numerical measure of the crypto market. In a mature market where "cryptocurrenciness" is mostly just a fact of life, they ought to be less correlated as they have independent lives of some sort. (They'll never be completely uncorrelated, of course, since the whole market is correlated to some degree.) Right now it's still enough of a novelty that the mere fact of cryptocurrenciness is a big percentage of the appeal of a given cryptocurrency.

kllrnohj 5y ago

Likely related to the China news: https://www.reuters.com/technology/chinese-financial-payment-bodies-barred-cryptocurrency-business-2021-05-18/ https://www.reuters.com/technology/chinese-financial-payment... Estimates put 65-75% of BTC mining in China. That just became a pretty shaky foundation.

spamizbad 5y ago

Crypto holding steady; USD is in a deflationary spiral /s

shp0ngle 5y ago

People don't differentiate really between cryptos, they just randomly throw their money around and call it "portfolio" All cryptocurrencies are basically the same and indistinguishable and fulfill the same needs.

marcosdumay 5y ago

Every time a miner post something here or on Reddit, they are mining one coin and immediately trading into another. The same for the exchanges, that keep reserves in a lot of them, and trade one for the other all the time to keep their ratio. It's not unexpected that they are correlated.