Topic: Anyone else notice that when share market down, crypto price goes up? - page 3. (Read 500 times)
December 12, 2019, 08:05:34 AM
Seems like there are no prominent direct relation between stock market and crypto market as both of them are to some extent speculative. Real estate on the other hand has some relation to both crypto and stocks and on a season of real estate buying and selling, which is Nov, Dec, Jan and Feb here, the crypto and stocks dips low.
December 12, 2019, 07:56:44 AM
Would Please share the legal data.I remember in 2017 share markets dumped and bitcoin and others crypto dumped also.That time bitcoin price dumped 4.5k$ to 2.1K$. So I am not agreed with your statement.
December 12, 2019, 07:37:09 AM
Coinmetrics has some interesting charts to see the correlation between the prices of two different assets. Most are crypto related, but there are a few traditional assets such as Gold and S&P. The latter is the most approximate entry to compare to, of those available.
In order to see the correlation factor at work, I’m comparing BTC/S&P and BTC/ETH on the same chart:
https://coinmetrics.io/correlation-charts/#assets=btc-s&p,btc-eth
The chart shows a strong positive correlation of between BTC and ETH, even more so since April 2018 with a value of around 0,8 (maximum is 1 on the scale).
On the other hand, the hypothesis of the OP should show a significant negative correlation between BTC and S&P, meaning that when one goes up the other goes down and vice-versa. The closer the correlation to the value of -1, the more negative correlated they are. Nevertheless, the correlation factor between BTC and S&P flips positive and negative, with values within +/- 0.2, which is a weak to negligible correlation with variable direction.
At least with S&P, the hypothesis does not seem to stand as valid.
Additional: https://coinmetrics.io/correlation/
In order to see the correlation factor at work, I’m comparing BTC/S&P and BTC/ETH on the same chart:
https://coinmetrics.io/correlation-charts/#assets=btc-s&p,btc-eth
The chart shows a strong positive correlation of between BTC and ETH, even more so since April 2018 with a value of around 0,8 (maximum is 1 on the scale).
On the other hand, the hypothesis of the OP should show a significant negative correlation between BTC and S&P, meaning that when one goes up the other goes down and vice-versa. The closer the correlation to the value of -1, the more negative correlated they are. Nevertheless, the correlation factor between BTC and S&P flips positive and negative, with values within +/- 0.2, which is a weak to negligible correlation with variable direction.
At least with S&P, the hypothesis does not seem to stand as valid.
Additional: https://coinmetrics.io/correlation/
December 12, 2019, 06:54:02 AM
I don't think there is any correlation with shares.
There is however a correlation with the dollar. When the dollar weakens, both gold and bitcoin rise. When it strengthens, both gold and bitcoin weaken.
The big development in 2019 was the Fed deciding to cut interest rates this year, which weakened the dollar from Jan to August, with a corresponding rise in gold and bitcoin. (Bitcoin rose from about $3000 at the start of the year to nearly $11,000 by mid year.)
However economic data coming out of the US has now improved, and it looks like there won't be anymore rate cuts - which is why the dollar is strengthening again.
There is however a correlation with the dollar. When the dollar weakens, both gold and bitcoin rise. When it strengthens, both gold and bitcoin weaken.
The big development in 2019 was the Fed deciding to cut interest rates this year, which weakened the dollar from Jan to August, with a corresponding rise in gold and bitcoin. (Bitcoin rose from about $3000 at the start of the year to nearly $11,000 by mid year.)
However economic data coming out of the US has now improved, and it looks like there won't be anymore rate cuts - which is why the dollar is strengthening again.
December 12, 2019, 06:41:10 AM
What stock price do you mean? give a little explanation to other friends answering your questions in this forum, let us help a little about your question, if you observe bitcoin is increasing more than altcoin, I think it's true that bitcoin dominates all crypto currencies and we all know about it 
December 12, 2019, 05:48:36 AM
I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
i have don't think that there is no co relation between crypto and share market , and you are saying that share market and crypto market is inversely correlated which index are you talking about ?? 
December 12, 2019, 04:54:32 AM
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when share market down, crypto price goes up
OP, can you put that in a chart? I highly doubt that it's true!
yes i agree with you @ alani123 there must be concrete evidence about what the op said. in my opinion the rise and fall of bitcoin has nothing to do with the stock market because they are different. bitcoin is decentralized and the ups and downs of bitcoin prices are influenced by demand and supply while the rise and fall of prices is greatly influenced by company policy and political policies of a country and also influenced by the United States dollar. so I think the ups and downs of bitcoin prices have nothing to do with stocks.
December 12, 2019, 04:43:48 AM
I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
I did not pay attention to the stock market so I was more focused on the cryptocurrency market, meaning that if so when cryptocurrency is currently down then the stock market is going up?
People will not pay attention to that because they are more focused on observing BTC and obviously the percentage is increasing because there is a lot of market volatility there.
December 12, 2019, 04:28:15 AM
I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
Yes definitely I would like to explain you this. Basically most of the trading takes place in BTC trading pairs over all the exchanges when it comes to alts. You don't get a lots of alts listed with USDT pairs so whenever there is a dump in the market people don't go to USDT instead they just sell out their alts and keep BTC thus controlling their BTC count from falling. This is why BTC dominance always increases whenever their is a such a dump in the market. December 12, 2019, 04:25:05 AM
As many here have already stated, simple chart timeline might help visualizing and also proving such point. But personally, I don't think those markets are highly correlated. Even though there is some resemblance, such as when we consider the fact that cryptocurrencies offer as an alternative to fiat (stock market units), I don't see a lot of people investing/trading in stock that talks about switching to crypto as soon as a market crash happened.
December 12, 2019, 04:08:17 AM
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when share market down, crypto price goes up
OP, can you put that in a chart? I highly doubt that it's true!
It's a complex relation. It's true to some extent. When there's a sharp bull in large share markets, people invest into crypto. But it's almost parallel to average share market.
For example, prices of crypto goes red in November and December and so does the Share market.
December 12, 2019, 04:07:06 AM
I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
I too doubt about the correctness of this statement. There are many major stock markets available worldwide like NYSE, Dow jones, Nikkei, BSE etc. Which market you are taking as a reference. I too want to see a chart for the same!
What I have seen as a trend, whenever traditional stock goes down, gold price rises! Because big ticket investors usually move their funds to the gold market to safeguard their capital. It doesn't happen every time but yes, most of the times! I doubt bitcoin has been taken over the place from Gold and it is highly unlikely because Bitcoin is so much more volatile than any other traditional asset class!
December 12, 2019, 04:02:19 AM
Let's put it this way, the stock market is inversely correlated to cryptocurrencies price, do you agree?
If you meant the stock market as a whole, probably through the S&P500, then definitely not. In a few cases sure, probably, but the inverse movements of both asset classes are mostly due to coincidence. As a whole though, if you zoom out for to a data point of more than a year, then nope.
December 12, 2019, 03:44:03 AM
The thinking is that some percentage of people seem to think that Bitcoin is a good store of value and a safe haven. So when the global financial
markets are struggling, these people turn to Bitcoin as a hedge against potential losses in the event that the Stock markets might collapse. I am not
convinced by this, because I think there is only a very small percentage of professional traders that would shift "safe" money into a high risk investment
option like Bitcoin. I will leave the other questions to my fellow members to answer, because I am pressed for time now. 
markets are struggling, these people turn to Bitcoin as a hedge against potential losses in the event that the Stock markets might collapse. I am not
convinced by this, because I think there is only a very small percentage of professional traders that would shift "safe" money into a high risk investment
option like Bitcoin.
I will leave the other questions to my fellow members to answer, because I am pressed for time now. December 12, 2019, 03:39:00 AM
Let's put it this way, the stock market is inversely correlated to cryptocurrencies price, do you agree?
December 12, 2019, 03:36:58 AM
There used to be inverse market movement between the stock market and the cryptocurrency market. This isn't the market situation throughout, over the past two months too there might be times at which the stock market went low and cryptocurrency prices grew high. Almost every country's stock market is observed to be low, and same is with our cryptocurrency. We haven't experienced very big growth over the last two months.
December 12, 2019, 03:12:41 AM
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when share market down, crypto price goes up
OP, can you put that in a chart? I highly doubt that it's true!
Share market? OP, are you talking about the stock market? And even if you are, you've only been watching the bitcoin market for two months, so I don't think you're looking at enough data points unless you've actually researched past price movements.
the percentage of BTC always increased.
What do you mean by "the percentage of BTC"? You really should be posting all of this in the local boards, because there's an obvious language barrier here. Nobody is going to be able to answer any questions for you if they can't understand what you're asking. 
December 12, 2019, 03:08:12 AM
I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
Quote
when share market down, crypto price goes up
OP, can you put that in a chart? I highly doubt that it's true!
Plus one.
But even if that is true, the chart would only be very limited, and therefore inconclusive, because you've been in cryptocurrency for just a couple of months. That means whatever pattern formed within that short period of time does not speak of the bigger picture. BTC accounting more than half of the market means it has a bigger market cap than all the altcoins, which could also mean that it has more value than the rest of the cryptocurrencies. It has higher demand compared to all altcoins combined. It also means Bitcoin is more trusted or it has more supporters and investors compared to altcoins. As to the why, I guess that would be your part to dig up.
December 12, 2019, 03:07:49 AM
I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
You mean the price of Bitcoin increases or Bitcoin dominance? I guess you should include some evidences to convince your readers. I wouldn't be surprised if this is true. The markets are somewhat interconnected.
Bitcoin is the main cryptocoin. Investors trust it more I guess
December 12, 2019, 02:55:18 AM
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when share market down, crypto price goes up
OP, can you put that in a chart? I highly doubt that it's true!
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