There still seems to be a lot of correlation in the prices of Bitcoin and Litecoin, I am pretty sure the same would be true for Ethereum as well.
I am not really sure why this is the case unless it is just that people are buying and selling the major coins and tokens based off of what Bitcoin does, but to me, that seems kind of strange. I know Bitcoin is used to make other purchases, so people buy Bitcoin (increasing the buying pressure), then use that Bitcoin to pay for other coins and tokens (so in a sense you are selling Bitcoin, increasing the selling pressure). It seems to me like if there were a lot of people buying Litecoin with Bitcoin, the price of Litecoin would be increasing but shouldn't the price of Bitcoin be inverse of Litecoin? I know also there are a lot of other transactions with other coins and tokens going on at the same time so that has to be affecting the price also. Most likely I am missing something really obvious and I am not really sure why I care but it just seems really interesting to me.
If anyone has an idea why this is the case I would appreciate if you would let me know your thoughts.
I am not really sure why this is the case unless it is just that people are buying and selling the major coins and tokens based off of what Bitcoin does, but to me, that seems kind of strange. I know Bitcoin is used to make other purchases, so people buy Bitcoin (increasing the buying pressure), then use that Bitcoin to pay for other coins and tokens (so in a sense you are selling Bitcoin, increasing the selling pressure). It seems to me like if there were a lot of people buying Litecoin with Bitcoin, the price of Litecoin would be increasing but shouldn't the price of Bitcoin be inverse of Litecoin? I know also there are a lot of other transactions with other coins and tokens going on at the same time so that has to be affecting the price also. Most likely I am missing something really obvious and I am not really sure why I care but it just seems really interesting to me.
If anyone has an idea why this is the case I would appreciate if you would let me know your thoughts.