Cardano price locked to BTC value - to the second

bitcoin

#1

Wondering why Cardano (and many, many other alts) are locked to the second to BTC’s trading value lately (the past 2 weeks). Usually, when BTC goes down, other alts go up - but lately there’s something suspicious going on - and all alts move down with BTC, instead of up. The money is magically evaporating, and then coming from nowhere when it goes back up.

Can anyone offer an explanation (not just trading pairs, because this happens to Etherium based currencies as well). Why are the values are not moving around anymore (alternating between alts and BTC)?

If I watch BTC value, it mirrors ADA’s value to the second. ADA is not allowed to rally up, unless BTC moves up. And even if ADA has a nice value, if BTC drops, ADA goes straight down exactly with it. Do we have a problem with a dodgy exchange? This is only happening recently.

Check any old day of ADA on a graph, and open a BTC chart for the same day, and you’ll be looking at exactly the same chart (+/- only about 10%). Inverse relationships with alts and BTC have vanished, and something is happening lately.

Bots? Dodgy trades? Market manipulation? It’s certainly not human/speculative, because this all happens the exact second BTC moves.


#2

That’s a really good question you are asking. I have been thinking about it for days, but I can’t find a good explanation for this event. It can’t be human, so I guess indeed bots are making auto trades between multiple cryptos and btc.


#3

For me it can’t make sense. Where is the money going if ALL coins go down at the same time? Likewise, when all coins go up at the same time, it means there aren’t trades, the money is coming from elsewhere? There can’t be that many fiat conversions every single time?

The only way it’d make sense, is if everyone were cashing out on each down cycle (impossible) or hedging, then buying coins with fiat on the up cycles - since the value goes nowhere in a synchronised-down…

Still doesn’t explain how they are magically tied to each other to the second…

Suspicious! Could be bots, but needs to be investigated, for sure!


#4

Personally I imagine it is indeed bots + the use of tether and it’s ever expanding supply (rather than converting to fiat).


#5

The money isn’t going anywhere, people are just willing to pay less for the crypto at that time. For example, the market cap for BTC is atm $195,776,212,727. This means that if everyone that owns bitcoins at this moment and wants to sell the BTC for it’s avg. price of $11,708.50 and they are actually able to find buyers for that price, the market cap is 195,776,212,727, but this doesn’t mean that there was really $195,776,212,727 invested. So if the market cap drops to $105,776,212,727 and every one keeps their BTC, there is 90,000,000,000 ‘‘gone’’ in USD.


#6

I do realise that (of course the price is not fixed, hence the market cap/circulation = coin price).

But mathematically, it doesn’t make sense for everything to lose value at the same time, without the funds going IN to another currency (of course not dollar for dollar). If it’s a mass exodus of all coins, and nothing is going up, then to me, it seems absurd, but people must be cashing in (of course they’re not).

Prior to a few weeks ago, BTC would grow, usually at the detriment of the alts, and the reverse was true - as interest/speculation and coins were traded for the popular currency at the time. BTC would die, alts would boom, and reverse - rinse, repeat.

How can they all drop in unison? How can the value decrease (and increase) for all alts at the same second?


#7

Exactly what happens with gold/market stocks. Anyhow, bots might be a good explanation for this event. They are probably able to switch very quick between mutiple alt coins to gain some profit, which effects us human beings in our buy behaviour.


#8

This could just be the fluctuation on the dollar


#9

I noticed this as well. However, it doesn’t seem as if only bitcoin and cardano are affected. I noticed ethereum and a few others as well. Monitoring the the price the last few days the satoshi amount of cardano seems to hover around the same price regardless of whether cardano is up of down ± 0.1.


#10

#11

Thanks for sharing Jose. It confirms why I never understood the logic behind market cap calculation! Good lord I’m not alone!


#12

I kind of understand, but how is it counted twice when my buy sell happens through my exchange and I get real $$? This article makes it sound like there is no real connection to fiat, but there is.


#13

I guess it depends on which crypto you’re talking about.

Most cryptocurrencies depend on Bitcoin for conversion to U$.


#14

Money flows back to alts usually when BTC goes sideways, not up and down. When people want to preserve their alt gains they will hedge against BTC, when people want to preserve their BTC gains they hedge against USD, not alts.