I'm not particularly fond of the idea of 'Basket Trading'. To me, it brings more drawbacks than benefits, toward the overall dynamics of the trading environment.
CONTEXT
In general, big players uses the Basket to split their capital into 10 to 15, or even 20 different assets which they deemed 'worthy' or 'hot'. And then they'll BUY or SELL them at the same time altogether at a given price action.
THE BIGGEST HINDRANCE
Since they are 'big players', of course they have big capitals. And what happen when they execute trades using Basket ?
Chaos.
See the key take here is about "Buy or Sell at the same time".
Yes, SAME TIME.
Meaning, that they actually disregarded what was happening on the whole other 19 charts.
Mostly they only cares about BTC situation, since it has the most volume. They don't care what trendline is happening at Solana, what chart outlook is unfolding on AVAX or ETH, and so on and so on.
When they want to sell BTC, they broke apart other charts since they also included the other 'hot' commodity into their Basket. Even JUP is already there now inside it, as you can see the same dip in 5 minute chart.
Vice versa when they want to buy a big chunk of BTC, other assets will be boosted too.
UNCERTAINTY
This condition is actually detrimental to the community of Crypto Traders.
Since you know BTC always drags your token's chart, then you eventually feeling the need to understand the current situation of BTC. Like, where are Support lines, where Resistance, where the outlook going, etc.
Because hey, who would knows what will happens when BTC moves next, right ?
For example, 1d BTC is pointing down, it looks like could repeat the pattern of previous move from 49k to 38k (not actual prediction, just FUD example). Putting 'Selling Pressure' into SOL instead of what supposed to be just a normal retracement.
CONCERN FOR THE BETTER
If I was in charge of the regulation, I'd really like to remove and ban Basket Trading. As it is unfair, and the users are irresponsible to the damage it causes elsewhere.
Unfortunately, I'm just a nobody.
