Is it normal for all altcoins to fall like this?

[Jonata]

in recent weeks the altcoins have fallen drastically, does this have to do with the increase of BTC? Every time the bitcoin rise they will fall?

[Kargai]

It really depend. Last time the BTC was droping, most of the alts were dropping too. This time BTC rise and alts drops again.

[Dan]

This is a very normal reaction. Due to how most altcoins are traded against bitcoin, you will actually find the FIAT value (real world currency value) of the altcoin remains fairly close to the price before the recent pump of bitcoin, but because it traded against bitcoin, i.e. you buy it with bitcoin, then the price against bitcoin goes down.

This in turn usually creates panic for most traders, which results in them selling their positions to hold bitcoin during the pump, due to the price of bitcoin increasing, their wealth appears to increase. But the way that works, is they would need to either sell their bitcoin back for FIAT once they heat the peak, or return it all into altcoins, to get a better price on the altcoin they sold previously. Once this moment happens, and bitcoin starts to consolidate, you will find the altcoin prices start to return to their normal price.

I wrote this in a rush so hopefully I explain the concept properly.

Short answer, yes this is normal, and their drop is based on price of bitcoin, not price of coin to FIAT. Best thing to do in situations like this is to hold, and not sell your altcoins at a loss. Bitcoin always has dips and pumps. The price will fall eventually again, and altcoins will pump again.

[Kargai]

21 minutes ago, Dan said:

This is a very normal reaction. Due to how most altcoins are traded against bitcoin, you will actually find the FIAT value (real world currency value) of the altcoin remains fairly close to the price before the recent pump of bitcoin, but because it traded against bitcoin, i.e. you buy it with bitcoin, then the price against bitcoin goes down.

This in turn usually creates panic for most traders, which results in them selling their positions to hold bitcoin during the pump, due to the price of bitcoin increasing, their wealth appears to increase. But the way that works, is they would need to either sell their bitcoin back for FIAT once they heat the peak, or return it all into altcoins, to get a better price on the altcoin they sold previously. Once this moment happens, and bitcoin starts to consolidate, you will find the altcoin prices start to return to their normal price.

I wrote this in a rush so hopefully I explain the concept properly.

Short answer, yes this is normal, and their drop is based on price of bitcoin, not price of coin to FIAT. Best thing to do in situations like this is to hold, and not sell your altcoins at a loss. Bitcoin always has dips and pumps. The price will fall eventually again, and altcoins will pump again.

On the principle you are right, that's the classic way things go, principle of communicating vessels . But last time the bitcoin "crashed" what I was expecting was a pump in alt coins. Which wasn't the case, most of them were crashing too excepting Cloak, Vertcoin & another one.

It can depend on the moment your look at it tho. 5 hours ago all the alt where crashing (as in Jonata's screen), but right now fall alt coins are not crashing anymore (half are in progress)

[Dan]

10 minutes ago, Kargai said:

On the principle you are right, that's the classic way things go, principle of communicating vessels . But last time the bitcoin "crashed" what I was expecting was a pump in alt coins. Which wasn't the case, most of them were crashing too excepting Cloak, Vertcoin & another one.

It can depend on the moment your look at it tho. 5 hours ago all the alt where crashing (as in Jonata's screen), but right now fall alt coins are not crashing anymore (half are in progress)

There is also other factors to look into, during this  scenario, the money from altcoins has gone directly into bitcoin, but during the last bitcoin crash, the money wasnt going into altcoins, it was being traded for FIAT.

The difference with this situation is the altcoin market was traded directly into bitcoin, there was no new money from FIAT (or not as much as there was altcoin money) and its on that merit that you can expect the money to flow back into altcoins during next consolidation period, unless all those investors dont see fit to return back to their previous strategy, which would mean a complete market crash, but that's not likely.