Why do many coins follow the surge in BTC? (Part 2)

Some people may think, that's not right, why should I sell when there is good news? Can't I just place a sell order of more than 20? It is true, but the information is asymmetric. BCDE thinks it is worth 20 US dollars, but the seller is not aware of this. They only know their expectations. They are likely to raise their selling price for good news, but there is a high probability that the transaction will be completed in the end, and the latest transaction price is likely to be around 20 US dollars.

In this way, you understand the principle that the final transaction price of the market is the final price after market game.

Then let's go back to the currency standard. Does the trading pair between BTC and other currencies represent the proportional relationship between BTC and other currencies? Generally speaking, the good news such as interest rate cuts in the market are for fiat currencies. The US interest rate cut means that more US dollars will flow into the financial market of cryptocurrency, and more US dollars will be converted into BTC. BTC is rising compared to the US dollar, but will this good news have an impact on the BTC/SOL or BTC/BCH trading pairs? Not at all. What does the increase in your BTC compared to USD have to do with my sol exchange for BTC? It has nothing to do with it.

So the final transaction price of the currency-based trading pair is the final value of the final transaction ratio of BTC compared to other currencies. The positive of BTC/USD will not affect the exchange relationship between BTC and other currencies. BTC has increased compared to USD, and the BTC/SOL ratio remains unchanged. Will sol/USD naturally increase?

This is the principle.

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