With the price of Bitcoin going up this week and stabilizing in the $6,000s I started seeing something new all over Crypto Twitter. It was a new word I had never heard of and the word was "Decoupling". I knew sooner or later I would have to research about it (like you always should). And so I dug deep and I have found out what it means. This post is for those who are like I formerly was and  don't know what the word means.

Decoupling is a concept that means correlations can such a strong influence, that they prevent natural independent movements in price action that people wish to see take place. If I want to put all this verbose English in simple layman terms, decoupling is the ability of  something (a Cryptocurrency based on our study) to break free from the dominance (or even to just reduce the dominance) so thatthe coins can have their own independent movement.

The whole talk of decoupling was recently brought to the fore because of the price crash we recently experienced. From the price crash, it became glaring that Bitcoin was coupled to the dollar and the stock market. What this meant was that if the dollar went down or the stock market fell (like we saw) then Bitcoin would also fall value (like we also saw). And so it served as a kind of good news when we saw the Bitcoin value rising by about 80% in two days and the stock market was still down. It showed that Bitcoin could be decoupled from the traditional financial markets (even though we might not have achieved that right now).

Apart from Bitcoin being decoupled to traditional financial markets and the dollar, there is another coupling we always experience. That is the Bitcoin coupling to alt coins and a other Cryptocurrencies in fact. When the Bitcoin price fell about two weeks ago, there was a crash in price across board. Just a handful of coins were not affected, and we saw some coins lose up to 50% of their value. This was all because they are coupled to Bitcoin, and whatever happens to Bitcoin has a rebound effect on the whole market. So maybe a day will come when we will also experience alt coins and other Cryptocurrencies decoupling from Bitcoin.