Bitcoin, Crypto currency, Blockchain

Correlation in the Price of BTC and Altcoins: Ripple-CEO suspects will soon be over

The price trends of the Altcoins are the Bitcoin price is often very similar. Many ask the question: Why are the prices so similar? Here are two approaches dominate the opinions. Ripple CEO Brad Garlinghouse says that this will all end soon.

Who is watching currencies of Bitcoin, Ripple, Ethereum and the rest of the Crypto, the notice is, that the price trends strongly the same. The price of Bitcoin rises the Altcoins are on the rise. Of course, drops it often behaves the same way. With a few outliers, most of the course orientation of the gradients of the crypto currency at the top: Bitcoin. There are several possible reasons for this. Is often suspected price manipulation. Through clever placement of Trading Orders, and the removal thereof, the fearsome whales could manipulate the entire crypto market. A few weeks ago, led U.S. authorities to a series of studies – the results are not yet available.

A other again and again attempted explanation is the fact that Bitcoin is to currencies as the reserve currency under the Crypto. So many course are based on the Altcoins to the Bitcoin price trends. Add to that, you can’t buy a lot of crypto-currencies without Bitcoin. You want to add Altcoins to the Portfolio, you have to buy often before Bitcoins.

An end in sight?

Ripple CEO Brad Garlinghouse tells CNBC that these correlations would soon come to an end:

“There is a very high correlation between the price of XRP and the price of Bitcoin, but in the end, there are independent Open Source technologies. It is still too early, but in the course of time, it will be seen more rational markets and the [buying]behavior will reflect. […] It is still a nascent industry. The speculation in the markets dominates the Trading behavior. I think it is a matter of time until people understand the different Use Cases.“

Nevertheless, the crypto-Ecosystem is still in a speculation-driven buying behavior. As a result, the risk of bubble formation is still present. In the case of all concerns, which you have to Ripple like, which seems to be forecast to be not entirely out of thin air. Individual ICO bursting of bubbles, can be separated, ultimately, the wheat from the chaff. Then can emancipate the Blockchain, and Altcoins from Bitcoin.

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