In the past couple of days, a bunch of Altcoins performs spectacularly making gains in price far exceeding the large gain in the value of Bitcoin. As I explain below the main reason is clear. This occasion has left a lot of people puzzled and scratching their heads for an explanation. The answer to this question can be summed up in one word “beta.” Beta is a measure of volatility. And altcoins are highly volatile. They are the penny stocks of the crypto market. Certainly, something is up and it is reflecting in bitcoin’s strength; you don’t need to be a seasoned expert chartist to see that it has broken out.
A graph is a bullish indicator and four times in five a chart pattern will fail. The chart looks great and bitcoin is showing strength that is good and there’s surely geopolitical fuel out there to slingshot the marketplace should things go wrong. You can see altcoins perform spectacularly. You can track all of the principal altcoins. In fact ms spectacularly 300 of them right here at Mining Bonanza. Just click here and save this site for real-time prices on BTC and all the major coins. If we have left one out let us know. You likely will read about what moves bitcoin a few days after it occurred and you cannot imagine not all bad things “folks in the know” hedge against, occur, so occasionally you will never know. You can see this significant altcoin rally down the graphs of coins since the top coin rockets along with the speculators’ leap into the minnows, so the ones follow. Bitcoin drives everything and the movements of their altcoins are their exchange exposure to trading and acquisition and reflections of their volatility. Markets always want to personify moves and thus, in this scenario, the spectacular 160% movement in Bitcoin SV (BSV) has come to focus, the idea presumably being that the unlocking of a huge chunk of bitcoin would lead to them being sold and the proceeds invested in bitcoin SV, thereby pushing the price of bitcoin SV towards the hugely higher rates of bitcoin. Another thought for the transfer is that bitcoin SV is about to find a technical update. I am always skeptical about tales. Money flows drive markets and few have the type of cash needed to make.
In business school, the concept of the beta was an investment thesis. To get an outperformance on your portfolio you purchased”high beta” stocks since they had more ping inside them in the market than non-beta stocks. Therefore, if you thought things were going up, you would buy high beta than you would from a basket of low beta stocks to get higher yields. It’s possible to use beta to hedge and I use bitcoin’s beta to hedge my stocks since the type of jolt that will knock on the Dow is the sort of news that would sling bitcoin. If bitcoin continues its ascent then the large beta altcoins will outperform on how up because they will underperform on the way down. These financial instruments are tiny in comparison to other instruments and can increase rapidly and spectacularly hugely.