Topic: Are mainstream events linked to crypto's price movement on the market? (Read 536 times)

That's certainly true, mate. The determining factors of crypto's price are events in the mainstream world. After all, most (if not all) cryptocurrencies are being heavily traded at centralized exchanges worldwide. It is that centralization which makes a direct link from crypto land to the real world. Things would've been completely different if crypto was traded on decentralized exchanges more thoroughly. But I guess that people have become too dependent of centralized services within the mainstream world, that they wouldn't care more or less about the decentralization and censorship-resistance of crypto.

The mere fact that crypto relies on mainstream events to survive, has a lot to say about its independence. That's not how Satoshi intended the Blockchain to be in the first place. Bitcoin and other cryptocurrencies are meant to eliminate the middleman and separate themselves from the real world. Considering how far centralized exchanges have gone, crypto will remain dependent on mainstream events for the foreseeable future. Whenever something bad happens in the mainstream world, people resort to Bitcoin and other cryptocurrencies as a safe-haven to preserve their capital. That's why the Iran-American war has contributed to the increase of Bitcoin's (and crypto's) price across the market.

Nonetheless, time will tell us if crypto will continue to behave this way or not. Everything will depend on how much people are willing to support the decentralization of the space in every way. Without decentralization, crypto will become more dependent on the middleman (centralizing factor) becoming more closely linked to events in the mainstream world. Hopefully, crypto would become independent enough as an alternative financial system that's capable of rivaling the traditional monetary system of today. Just my opinion

Yeah, mainstream events does have a huge impact on the price of crypto currencies. Like you said, when Mtgox got hacked, the prices of crypto currencies started to fall. The same thing still happens. Everytime a major exchange faces some problem or gets hacked, the prices starts to plummet. Every time something bad pops up about crypto currencies on the media, the price starts to fall. This is also true of positive events that cause the price to surge back up in price.

Although there are no concrete evidence, I think mainstream events somehow affected the bitcoin price in market like what happen when the US government conduct an auction on the year 2016.
As we all know bitcoin results to a bull run in 2017 that is why many people today are talking about the auction this year by the US again ranging from 4,000+ BTC that is acquired from criminal and  illegal cases.
Maybe these big event can cause a drastic increase to Bitcoin Price again. What do you think?

Crypto and native stocks are closely related, if anything they are investment solutions and when one moves the other is likely to be affected. If there's a global downturn, it will also impact on crypto as many investors would want to liquid their crypto assets.

if it is associated with Stablecoin, of course it is very efficient in several ways, including the ups and downs of stable / centralized coin prices, almost similar to the rise in dollar stock prices. but in contrast to decentralized cryptoqurrency, they are not related in large world events, I mean most of altcoin depends on the price of bitcoin, especially on market demand.

That's certainly true, mate. The fact that the crypto market is too centralized, tells us that mainstream events will have a direct impact over a cryptocurrency's price. There's no other way around it. Until crypto becomes completely independent from centralized exchanges, prices will either soar or decline depending on what happens in the real world. At least, we could take this to our advantage for helping us determine when it's the right time to buy/sell a coin.

The cryptocurrency that is mostly tied to mainstream events is Bitcoin. I've seen how events like the Iranian-American war, China's announcement of a CBDC (Central Bank Digital Currency), and Facebook's announcement of the Libra stablecoin have positively impacted the price of the world's largest cryptocurrency by market cap (BTC). Other prominent coins on the market will rise in price alongside Bitcoin as they follow its footsteps. By all means, it's important to keep close attention to mainstream news in order to know when the bull market will take effect.

If by any chance the way we trade crypto becomes completely decentralized (theoretically it's possible nowadays, but adoption is almost non-existent), then mainstream events (either good or bad) won't have an effect over crypto's price across the market. But the way I see crypto is going, tells me that it'll remain too tied to the mainstream world for a very long time. Just my opinion

Indeed and it will really have an effect to cryptocurrency specially when events are about economics or about stock market and also to add it events that is about new technologies which very close to crypto can also have a role on cryptocurrency price movement, the effect may not be immediate but for sure it has so aside from researching and studying price graph you can also look at the events to help you predict future price puml or dump.

For some coins, I think yes, especially the price of BTC, ETH, and other top coins.
Some big events, annual events, or even the mainstream events may give some influence to the condition of the people that hold the events. We are not sure enough. but, we can analyze it often happens that people sell their coins right to head for a special event. Some may think that they really need to sell the coins because they need cash to hold the event.

Additionally, some issues also influence the market. Moreover, there are so many characteristics of people. Some may be worried about every issue that emerges in the crypto world and then being panic to sell or buy immediately.

Exactly. The main reason why crypto is too tied to events in the mainstream world is centralized dominance in the crypto space. Nearly every cryptocurrency is being traded on centralized exchanges, while decentralized exchanges have a small portion of market share. As long as crypto depends on centralized infrastructure to succeed, real world events will have an impact (either positive or negative) over its price in the long term.

What I've seen is that negative events in the mainstream world (wars, diseases, etc) have a positive effect over crypto's price on the market. I guess that people resort to crypto as a safe haven, the same way they do with Gold or any other precious metal. This is good, because it shows us that crypto is useful for times when the mainstream economy is collapsing. After all, crypto was created after banks collapsed back in 2008. Knowing that mainstream events have a direct link over crypto's price, could allow us to buy/sell at the right time. Hence, the more negative events happen in the mainstream world, the better it'll be for crypto's price across the market. Just my thoughts

I think that would be a natural thing, because crypto is the second option for the whole world today. the first option is the stock market, gold and other real estate. when the asset drops drastically or because of the issue that makes it rise dramatically, crypto, which is the second stream in the world, will be the second option and it will definitely greatly affect the price of crypto in the market.

The people who make up the cryptocurrency industry have no other choice but to be intertwined with the main markets because the people who make up the banking system and corporations cannot help but control the events in the crypto world.

indeed that is what should have happened and i agree with you, but what is happening now i think the crypto market is no longer independent because manipulation actually makes the market like having a center that makes external relations connected to the crypto market even though sometimes events happen simultaneously or even in the direction the opposite

although cryptocurrency is intended to distance itself from the centralized world but certainly major events in the mainstream world will affect the holders of cryptocurrency. For example the existence of Iran's conflict with the United States made several stock investors shift their assets to bitcoin, of course this pushed the price of bitcoin to rise and the support of the Chinese president for the blockchain also made the price of bitcoin rise.

Of course they are definitely connected, not like there is no connection between regular life and crypto world, in the end it is humans that go through all those real life events that end up buying or selling crypto. Just to give an example think of a person who loves crypto and very interested in it, if you give that person a million dollars he will spend it on his regular life things but he will also invest into crypto a bit as well, if you put a person who has a lot of crypto into debt that person will end up selling his crypto to pay his debt off.

So, whatever happens in our lives, we end up putting that into crypto as well, its as simple as that. Hopefully we will not have bad lives and won't be in Iran USA war type of bad stuff but usually end up in good stuff so we can all get a bit more richer.

I do think the price is linked to the events in the world as well.
Take for example when Mtgox got hacked and lost 350M Dollar, it was actually on the news on the television.
People I told about Bitcoin but weren't using it at all where telling me this like I wouldn't know.
I believe this news brought the price even more down then it already was, for a long time.

Maybe a stockmarket crash/bearmarket could increase the price in Crypto as well, lot of people will pull their money out of stocks and are looking to reinvest it again.
And the total chart/price of Bitcoin is connected to the mood/thoughts about Bitcoin over the whole world as well.

Also you can trade Crypto 24/7 a day the market doesn't stop you can pull out when you want to or get in when you want to which gives a certain freedom.

Exactly. The mere fact that crypto has centralized exchanges, links mainstream events to it. Satoshi intended Bitcoin to be decentralized and free from middleman. But all I see is that crypto is becoming more dependent on a third party than anything else. In effect, any mainstream event (either good or bad) has a direct impact on its price. Of course, we already have decentralized solutions for the exchange from one crypto to another without counterparty risk. But, centralization still dominates the crypto space which could turn out to be bad for the longevity of the crypto industry over time.

Since people are mostly into crypto for the money instead of its technology, we see how little events on the mainstream world have a huge impact over a coin's price across the market. Sadly, this has been the way of crypto for a couple of years since inception. There's nothing we can do in our part, since people don't want to use decentralized services for their own benefit. We just have to live with what we have now, and do our best to prevent crypto from becoming too tied to the mainstream world. It's hoped that new developments in the crypto space, would bring positive news that could gather a large number of people into it. This would result in higher demand, which leads to higher prices across the market.

Nonetheless, the recent events of the Iran-American war has brought a slight increase in crypto prices. This means that if there's conflict in the real world, prices of crypto will rise to the moon as people consider them to be a safe haven against traditional Fiat. In the same way, the decline in stock's price allows crypto to increase in price across the market. Which leads me to believe that crypto prices are linked to mainstream events one way or another. Just my thoughts

The cryptocurrency market is connected with people, and people are connected with news that occurs in a centralized world and depending on what is happening in the world, people choose an investment strategy and therefore the cryptocurrency market will always depend on news that occurs in a centralized world until the world will become decentralized

crypto should not be influenced by the outside world because the stock market is experiencing an increase and crypto is always in conflict with things like that. even today many people assume there is a change in market prices due to the Iran war which is always associated with major events taking place in the world

Also shouldn't it depend on the mainstream event? I mean lets say today is my birthday, that is an "event" but 99.999999% of the world doesn't know about it, so would that change the price of bitcoin? I guess not. Iran vs USA war? Would that change bitcoins price?

Maybe, depends on how long it takes and how serious it gets. There is absolutely no way we can collect data big enough to show what actually changes the price of bitcoin and what doesn't, there is no way something like that can be calculated in general, so we just "assume" some mainstream stuff do affect it and some doesn't.

In this example, we know Iran war could change it, and my birthday won't, now those are big marginal obvious examples, lower the Iran war and increase birthday and you got yourself a sweet spot where its just in the cusp of changing or not changing, that level is still unknown.

impossible to be independent, because investors always look at conversion prices.

as well as fundamental factors, bitcoin is also closely related as an alternative asset even though not everyone is aware of it. but behind that crypto still has its own agenda, especially bitcoin, so speculation will remain complex with several different points separate from the mainstream event.