Decoupling

By | , ,
Decoupling, as it pertains to cryptocurrency markets, is when the price of an altcoin no longer follows the price trend of bitcoin. Historically the price of an altcoin was tether to that of bitcoin because many exchanges only offered bitcoin/altcoin trading couples. As the market matures and currencies such as Ethereum and the USD start coupling more with altcoins, a shift in demand may lead to the loss of price correlation between Bitcoin and various altcoins, for instance: during mid to late 2018 the price of Ether in USD no longer followed Bitcoin's price trend.