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Topic: [2017-08-09] Research Says Bitcoin Price Booms May Positively Affect Stock Price (Read 5179 times)

legendary
Activity: 1526
Merit: 1179
I think exactly the opposite will happen in the coming years. If you look at the level of growth that Bitcoin experienced in the last years, it has widely outperformed basically every asset.

People have already noticed the major difference in growth, and will slowly start to allocate a certain percentage of their portfolio to Bitcoin.

I don't even see a reason to invest in stocks at all, knowing that there is a much better alternative to realize growth. If you compare the growth of well performing stocks with the one from Bitcoin, then it's just pocket change.
hero member
Activity: 490
Merit: 501
Oh, this is a very beautiful news! Imagine, it is now Bitcoin that has become a driving force for the upward movement of some stocks. Must be because the energy and the excitement generated by Bitcoin has also rubbed those in stocks. Or maybe because people who are earning in their Bitcoin investment are putting some of their earning to stocks as the more stable investment tool.

However, nobody can be sure why is this so. The main point here is that in the world of investments a lot of people are already aware of Bitcoin and there are now stock and even forex traders who are now also offering Bitcoin as part of their portfolio. Well, who would not want to be a part of something that is breaking all records in terms of returns?

Maybe it is time for stocks to say thanks to Bitcoin. Right?
sr. member
Activity: 2618
Merit: 439
I think we are just evolving in one market in general. It could probably be the those same persons or investors are into stocks and bitcoin as well. We always calls for diversify our portfolio, and bitcoin market are one of the instrument that those stock persons are going into. They are always willing to let go of their funds and put in into the bitcoin ecosystem. I guess we don't need research here. Its pretty obvious that those who played stocks are also into the bitcoin. They are all into the business of creating more money, no doubt about it.
sr. member
Activity: 574
Merit: 251
Nautilus Investment Research recently said stock prices tend to soar whenever bitcoin experiences explosive growth. Bitcoin’s price has trended upward about 80% this last month. The S&P 500 has seen monumental increases in lockstep with bitcoin. It appears that bitcoin prices are correlated with rise in stock prices.

The Business Insider article said, “These kinds of astronomical gains in bitcoin, it turns out, are correlated with a strong showing by stocks too, according to Nautilus Investment Research.”

Nautilus Investment Research also detailed that whenever bitcoin gained 30% value in a month, various stocks increased in price a couple of months later.


Why is Bitcoin a Driver for Stock Prices?

There are not any clear indicators why bitcoin is a driver for the stock price. The correlation is unknown. There are some theories that rampant buzz and excitement from bitcoin traders also distributes the same energy to Wall Street. The Business Insider article provided a similar sentiment:

        "When traders are going nuts about a highly-speculative investment like bitcoin, that same risk-loving attitude might turn up among the folks who trade stocks. What we can’t know from this is whether one affects the other, or if there’s something else driving strong demand for both"

The Business insider article mentioned the Nautilus Investment Research group only has 18 points of reference. This means their data research only looks at 18 variables in regards to bitcoin and stock price analysis. In all, it goes back to 2010, which was the early days of bitcoin.

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https://news.bitcoin.com/bitcoin-booms-may-positively-effect-stock-prices/
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