When BTC rallies, why do people dump their alts to get into BTC, when they only gain a few percentage points?
For example, even if BTC goes up, it needs to reach the lofty price of 30k to make even 50% gains, meanwhile some altcoins regularly increase by that much every couple of days.
Is there something I'm not getting? Because BTC breakout = altcoin fire sale for me
some alt coins will never go back to their previous BTC level again
>When BTC rallies, why do people dump their alts to get into BTC, when they only gain a few percentage points?
To buy more alt coins when the price is low. It's just selling high and buying low to increase your stack. Whales can make thousands just by stepping into BTC for a few minutes while the price of alts plummet, and buy back in for much cheaper.
It's not about gains user, it's a hedge. When bitcoin rallies like this all the alt coins will reduce in satoshis. When the rally is over, then you can buy more of them with the same amount of satoshis that you already had.
if you gain a few percentage points all the time then it adds up quick
If the alts trade with other coin like ethereum they have to go down because or arbitrage. The alts that trade with bitcoin alone probably go down because of fear
>
yea basically why i regret all my old altcoin buys. I should have entered/exited those markets way quicker. Now those are just my long shots.
they don't dump to gain a % of fiat. They dump to avoid being -33% in btc.
Because retards look at BTC price, see a 1k increase and FOMO in, thinking they've missed massive gains.
>I can't into the ping pong game ltc-btc play
because BTC goes 5% up AND alts go down like 50%
that's circular logic, the price goes down in sats because people are exiting...
what? if you hold btc your stack won't increase/decrease in btc but in dollars
God, we need to make biz private. The fucking normies are annoying
Pump and dump. It shits on the day traders who have 20k and less portfolios, it's hurts the hodlers a little bit but the whales make huge profits
Think of it this way
Everytime theres a dip theres always more people that buy in with more resources
When theres a raise theres always more people that will sell than the previous upward action.
intelligent life found on Veeky Forums
don't forget that most people here sell the shit out of dips and post pink wojacks
maybe I'm a brainlet but how does that answer the question? sure there's always going to be a dump after a pump but why is that all alts dumo when btc increases.
the only thing that makes sense to me is that the more you have in dollars the more you can make just from btc rising, so when btc rises the whales, who have diversified alt portfolios, strategically exit all their positions to rise the btc rally. sure they might not make as much as if their alts mooned, but they would still make a lot. that creates a cascading effect of whales exiting and small fish following in panic. when btc stabilizes, the whales have made more $ and now they re-enter the alt market, now with more money and with cheaper alts. small fish have nothing to gain from selling their alts when btc rises.
listen to this guy. That doesn't mean YOU can do the same thing. There is no guarantee you can buy back your position in alts at the same level once bitcoin stops pumping before the whales do. Many people around here began to do this and often got BTFO. The bitcoin pump that happened in the last weeks is an exception. When things settle a bit and we're back to normal, things won't be so easy. Remember: "everyone is a genius in a bull market".
>why do people short x shitcoin and hedge in bitcoin
i dunno, i hodl.
saved
Alts dump because people are stupid and they see bitcoin blasting off into space and they sell all their alts so they can jump aboard.
>maybe I'm a brainlet
>There is no guarantee
There is, alts will drop in sat if BTC is pumping, unless said alt suddenly starts pumping during the BTC really which literally doesn't happen.
That's just how it is. Early movers sell their position to buy back cheap. Usually it's whales which drop the price and cause a chain reaction.
theyre gonna realize dumping alts was the dumbest decisionthey ever made