Do Altcoins Decrease at a Faster Rate Than Bitcoin During a Crash?

In the analysis, we will include Ethereum (ETH), EOS (EOS), Binance Coin (BNB) and Stellar Lumens (XLM). The reason for choosing these coins is that, out of the top 10 coins ranked by market capitalization, they are the pairs that decreased and increased the most, respectively, throughout this BTC downward move.

Comparison

The Bitcoin price has undergone a decrease that until now has consisted of two downward waves. It reached a value of $11,300 on July 11 and traded at that level for almost two days. Another decrease ensued, and the price briefly reached lows below $10,000. On the other hand, while XLM and BNB have decreased, they have done so at a slower rate than BTC. This is somewhat unusual since — out of all the other coins in the top 10 — XLM and BNB were the only ones that decreased less than Bitcoin. Let’s take a look at both the BNB/XLM and ETH/EOS pairs, individually, in order to better see their movement more clearly.

BNB and XLM

Similar to BTC, both BNB and XLM have undergone a three-wave decrease. In the image below, we have outlined the waves in the A-B-C form. The price movements for both have been eerily similar. The main difference is that both the A and B waves have been sharper for XLM. This, however, caused them to cancel each other out. In both cases, the B wave ended close to the beginning of the A wave. Afterward, a decrease ensued and the price made a lower low.

ETH and EOS

Ethereum and EOS have followed a slightly different pattern throughout their downward moves. Both have been subject to two downward waves. Instead of initiating an upward move between them, they have traded sideways instead. The absence of an upward move is likely the reason for the higher rate of decrease. The biggest difference between these two coins is that EOS had a sharper first downward wave. To the contrary, ETH’s second downward wave was much sharper. However, EOS’s first and ETH’s second wave were almost identical in length. In the end, they both had very similar rates of decrease.

Summary

Since July 10, Bitcoin has decreased by roughly 18 percent. Ethereum and EOS have decreased at a faster rate than BTC. This is customary for alternate coins. However, BNB and Stellar have both decreased at a slower rate than BTC. The full results are shown in the table below.

Asset	Rate of Increase
Binance Coin	-13.01%
Stellar	-13.05%
Bitcoin	-18.45%
Ethereum	-27.19%
EOS	-27.46%

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Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.  Images are courtesy of Shutterstock, TradingView.