BTC has touched a remarkable $4400 price tag on Bitstamp. At the time of writing this, the price BTC is $4388. That is incredible by any means.
However, there's a side effect caused by BTC rise. The altcoins market is crashing. Or it seems to be crashing. But is it really crashing?
Source: Pixabay
The answer is; NO! It is not crashing at all. The altcoins are adjusting to the dollar price of BTC. All BTC/Altcoin prices are going down in Satoshi value. But the USD value of most coins is stable.
Example of Steem
The only coins suffering a crash are the coins with most sellers and no buyers. Buyer support is necessary to maintain good value of a coin. If a coin is being sold by all and bought by less people, it is going to suffer a drop.
If your coins are going down (massively) in USD value, that is a concern. However, a small decrease is natural. What happens on the cryptocurrency exchanges is that everyone sees the Satoshi value going down. Naturally, everything turns red and that is when panic selling starts to happen.
The slight drop in USD value is sign of panic selling on seeing red blood on the market. If that panic selling becomes viral, a massive drop in USD value, and of course Satoshi value, can not be stopped.
Let me exemplify my statement with none other than Steem. The USD price of Steem has been around $1.20 for the best part of last few days. However, the Satoshi (BTC) price has been fluctuating from 25000 to 40000; each time valued approximately $1.20 in USD terms.
Right now, the Satoshi value of Steem is 28890. If BTC price in USD drops, Satoshi value of Steem will increase to adjust the dollar price. Vice versa is also true.
So, the Satoshi value, as shown in the exchanges, will keep fluctuating. There's no need to panic. The US Dollar value of your coins is more important at the moment. If the dollar value is stable or going up, you have good coins. There's no need to sell them.
Disclaimer
This post is based on my personal experience and understanding of the cryptocurrency market fluctuations and price adjustments. I don't claim to be an expert. Do your own research before any investments or decisions.