Tether is just a hair breadth away from overtaking EOS to sixth position in the market cap ranking of all cryptos.
Tether currently stands at $1.8 billion while EOS is at $1.9 billion after falling another five percent today in line with most other cryptos.
BSV is the only one bucking the trend, while BCH has fallen by significantly more than any of the other top cryptos.
That suggests a certain billionaire may be selling BCH while buying BSV. A strategy that may have worked in a bull market, but we are seemingly learning that in a bear market it is very counter productive.
What may be happening here is that the added downwards pressure for BCH might be dragging down BTC due to the BCH/BTC ratio bots. BTC in turn is dragging down everyone else, so leading to double digits for eth.
Obviously eventually you’d think the billionaire will run out of BCH or will realize that we’re not in a bull market, so he should stop doing what he might be doing.
In which case, and if this downwards pressure is due to BCH, then you’d think there would be some sort of price relief.
This logical explanation may of course be wrong, but if common sense is any aid, then in a bull market a chain split might be a good thing because “cowboys” go yeehaaa and buy all the things.
As in, the predominant sentiment is buying. So when a new coin is born, we now have two coins people are buying, raising their combined market cap and perhaps adding upwards pressure to BTC through the ratio and thus to much of the crypto market.
In a bear market, the predominant sentiment is selling. So when a new coin is born, people now have two coins to sell.
While in a bull market the strategy of selling one to prop up the other might work to the benefit of both coins, in a bear market selling one is kind of selling both because there’s no buy pressure for the coin sold and no buying pressure for the new coin. No fomo. You’re instead just adding to the sell pressure, which as a miner you obviously do not want.
Whether the same would apply if one is selling the minority coin to buy the major coin, however, is a different question.
That’s because the new coin isn’t as integrated in the market, so might not have as much of an effect on the BTC ratio.
You’d think, for example, BSV’s 15% gain today would have had some upwards pressure on BTC, but it appears to have not done so because it might not quite have established ratio bots arbitraging.
It is not clear whether the same would apply if BCH was going up and BSV was going down because we have not quite seen that yet to the same extent.
The lesson however appears to be that things work differently in a bear market, so maybe eventually they’ll figure that out if indeed we are right in our analysis.
Otherwise, those that said the bear market won’t end until Tether rises to top 3 in market cap meant it as a joke not as a prescription.
Yet no one would have believed even a few months ago that Tether would rise to top six. That’s after its market cap fell by $1 billion.
Had Tether retained its circa $2.8 billion market cap, it would have been in fourth position just below ethereum.