/biz/ - Business & Finance

because they just buy whatever price bitcoin is at the time when selling, which keeps increasing the more people sell into alts and also why it goes down when people sell into usdt

>>8432755
Same reason why selling fiat into BTC increases BTC price

>>8432755
are you too liberalististic to understand it on your own?

why do people think that trades are either sells or buys? sure, there are market and limit orders that alter the liquidity of the book, but a trade for btc only lowers the price if the person goes on to cash out that btc into fiat, or short a pricing instrument, like on bitmex.

selling your alt into btc actually does not affect the price of btc at all, brainlets

>>8432846
it does because the btc changes hands into someone who is more likely to be in an angry stage of their market cycle so they are more likely to cash out or short crypto instruments

>>8432797
which explains why the price gets extra depressed around these parts. shorters are near the top of their market cycle (literally flip the wall street cheat sheet upside down) and shitcoiners who bought the top sell into btc and short on bitmex with leverage to regain losses.
most will lose it gambling or not gain enough to be worth it by the time they realize things are back again. https://www.bitmex.com/register/YgC8kJ

>>8432863
I hear the narrative that alt selloffs make BTC/USD moon. I could understand alt capitulation hurting BTC/USD price by people first selling alts to BTC and then selling to USD to cash out, or the reverse happening during alt runs. But it doesn't make sense that an alt selloff to catch a BTC pump increases BTCUSD demand.

The demand for btc increase

>>8432755
Selling an alt into BTC does not affect BTC's price.
It's the other way around, BTC increasing in price causes alts to sell into BTC, for alts with another pairing anyway (e.g. USD, USDT, or ETH).

e.g.
Let's say BTC is $10000
- The BTC/ALT market price is 0.1 ($1000)
- The USDT/ALT market price is $1000

Then BTC rises to $11000 in a single candle.
Before anyone is able to do any arbitrage, the price is still the same... or is it?
- The BTC/ALT market price is 0.1 = $1100
- The USDT/ALT market price is $1000

Arbitrage bots will detect this discrepancy, and immediately buy the cheaper sell orders on the USDT-paired market, and DUMP IT on the buy orders on the BTC-paired market, netting a total gain in USDT.

So everyone who is heavily into alts, and HATES it when BTC goes up, alts go down, and keep asking for "more pairings like USD, USDT, ETH pairings, etc", thinking they can "decouple" from "dinosaur" BTC, don't know what they're asking for.

Alts paired only to BTC rise and go down along with it, and are generally unaffected.
Alts with other pairings though, instead get murdered in their BTC-paired market when BTC goes up significantly, because of arbitrage.

>>8433047
people sitting on the sidelines waiting for their USD price targets to be hit before buying in + shitcoiners chasing what they see pumping the most, as in they have little faith that the buyers of bitcoin will be using it to buy their shitcoin
your exit is someone else's entry

>>8432773
Ah yes, but why is it that selling BTC into fiat doesn't raise the price of fiat?
...
One of the great questions of our day

>>8433239
it does you moron

>>8433239
fuck me....
I hope no one takes advice from this board

>>8432755
Lmao why is sargon's face on /biz/

>>8433239
Holy shit if you think about it, BTC is not dropping its just USD rising. MIND BLOWN

>>8433080
right

Regarding OPs question: It's the same argument, say ETH/BTC falls by 1% (most Alts are still traded in this pair) while ETH and BTC prices are unaffected, then arbitrage traders will buy BTCUSD, buy ETHBTC and sell ETHUSD, which makes the prices diverge.
But this only happens when most of the price action is happening on the ETHBTC pair, which is certainly not often the case. For example in yesterdays crash and the rebound we saw that Alts acted almost like leveraged BTC. If you compare the BTCUSD and XRPBTC chart they almost look the same.

To sum it up, what OP describes is not always the case, there is sometimes a positive and sometimes a negative correlation between BTCUSD and ALTUSD prices. You can often find an explanation for why the correlation is how it is and momentum traders will fuel the price divergence.