Why do some altcoins get cheaper when Bitcoin rises?

altcoins get cheaper when Bitcoin rises

On February 15, 2021, Bitcoin reached another all-time high. Bitcoin in the world costs $ 49,000 for 1 BTC to the date. At the same time, a number of altcoins are dropping in value right now. What does this mean and is it worth talking about the altcoin crisis?

There are several explanations. Bitcoin’s record growth is attracting capital from other cryptocurrencies, so the latter are declining in value. Even the # 2 most popular, Ethereum, has been declining in value during February 15th, following a large upward gain the day before. This is a downward correction.

In the future, the trend may continue. The key factor here is the way of BTC to reach 50 thousand dollars per 1 coin. It’s so close now. If this happens, the purchase of Bitcoin will grow even more and the current process will speed up. The current rise in BTC is descibed ambiguously by experts.

The famous economist and writer Nassim Taleb recently admitted that he sold his own bitcoin savings. He believes that the state of the currency is unnecessarily volatile, and the current price growth can only aggravate this instability. Moreover, he calls the current moment a key indicator of the instability. At the same time, the well-known investor Mike Novogratz is convinced that BTC is able to overcome the $ 100 thousand mark by the end of 2021. Some other significant experts talk about more exorbitant prices. For example, investor Timothy Petersen assumes the chances of 1 BTC rising to $ 140,000. In his opinion, this will be possible if the number of owners with 1000+ bitcoins grows by 500 people or companies from the current figure.

In addition, the cheapening of altcoins is too loud a statement. This is a small correction in most cases. For example, the same Ethereum has no chances to fall in price much, since its price correlates by 85% with the change in the value of bitcoin. Some altcoins are steadily increasing in price. For example, Litecoin reached a rather impressive $ 220 for 1 LTC. During the last peak in December 2017, this altcoin was worth $ 205. Then, for example, the founder of the project, Charlie Lee, sold his entire stock, and today he could earn more.

Another positive example of growth is Chainlink. Today it costs $ 32.1. IOTA saw a 121% price increase in 7 days, Vechain rose 80%, Cardano 64%, Stellar 61%, Tron 57%, EOS 50.6% over the same reporting period. In summary, the correction for other altcoins should not be a key market indicator, and a stable growth in the value of digital assets, except for Bitcoin, should be expected.

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