Topic: Bitcoin price is always affected by world market news, why ??? - page 2. (Read 478 times)

I think this relationship started during the Corona period when Bitcoin and the world market( stock and bonds) crashes and attention was all there in the world market since the world was expecting everything to be fine after the lockdown and when the market started bouncing back, bitcoin follow and that was how everything began, bitcoin market became correlated with anything that comes out of the stocks and bonds if the Fed decides to increase the interest rate, those actions affect bitcoin too because of the reactions of the stock and when vice versa, they also react to the market.

One thing you should understand about bitcoin is this, on the short-term level, bitcoin may be correlated with the traditional market but don't forget that Bitcoin has its own macro factors that push its own price, those factors like the Halving that happen every four years is what we look forward on the impact of bitcoin price.

Hmm, let me change your mindset.
You said Bitcoin is independent yes it is but it never means that Bitcoin is from another Dimension or Universe it is part of the financial market. Let me explain how you are an investor yes or not? Obviously yes and you are living in the traditional financial ecosystem Yes or No? Yes obviously because you are not fully regulated in Bitcoin you can't use Bitcoin for each and every financial transaction dn for basic needs trading yous still can use BTC.

So when a crisis hits you and you are an investor of BTC how are you expecting it will not impact Bitcoin or the whole crypto market? Buddy yes Bitcoin market is different from the traditional market but still its the part of the Financial ecosystem. So when any financial disturbance occurs it affects the whole ecosystem and Bitcoin is part of the ecosystem.

Hope You got it. If not then let me know.. I can guide you in a more general way.

Alternatively I feel market is quite on it's own from a long time. I have felt that it's only us who relate every movement of the market with some or the other thing while actually it's moving on it's own. Also in bull run you see every good news giving higher peaks to btc while every bear run you see every bad news giving lower troughs and also somehow no bad news effect markets in that time and similarly no good news effect markets majorly in these bear times.

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Bitcoin is part of the system, so what affects the system affects Bitcoin, can be positive or negative.
It's just like the stock exchange market. I don't know how true it is but I once read somewhere that the news of the world ending in 2012 led to a decline of the stock market for a particular period of time. It's funny I know but it's very possible. If stuff like that can affect the market then what about things that are not just stupid speculations but things that have implications?

Human beings are involved in these markets, be it the bitcoin market, stock market, or forex market, and these human beings live, work, and invest in a country and are affected by the things that happen or news that come out from those countries. So when news breaks, investors tend to do what is best for their investment. Whatever they do affects the market.
Sometimes, it could be new regulations and policies. The point is these things create a reaction in the market and that reaction leads to the upward or downward movement of the market.
It's the same thing with Bitcoin. The fact that Bitcoin is totally and completely decentralized doesn't mean it doesn't abide by the laws of economics. It is also bound to the laws of demand and supply. In fact, I believe the laws of economics affect Bitcoin more than it does other markets because, to an extent, those market can be manipulated since they are centralized.  

Oh yeah that reminded me when I was like almost semi-newbie in Bitcoin. It was like a surprise to it to fall down back around 6k after it tried to go past 20 at that year. It was like still an achievement for me to be able to hold at least throughout that year and I gotta be honest that I almost panic sold my whole wallets that time.

During 2020, it was quite a different story for me though. I kinda cashed out a little bit since I really needed a cash at that time so yeah. Bitcoin still got its adoption from other people though, but it kinda gave birth to some shit NFTs at that time.

I would kinda consider myself also a small investor considering that USD rate here in my country is quite high so Bitcoin is kinda expensive to hold and starting out could turn out to be a pain in the ass. Small investor ain't a bad thing though. Screw all those gatekeepers.
Everyone just needs to start somewhere.

The news also affects other financial markets, not just bitcoin. As far as I know, forex or stock traders are also very interested in macro news, even more than we are.  Because those markets are huge and such an important part of the economy, they will be more closely related to each other than cryptocurrencies. Cryptocurrencies are too new and too small to really have that big correlation.
But you are right, if someone is handy can take advantage of the news to make a profit, and that is the way many investors and traders are using it. It's not quite as bad as many people worry.

By taking advantage of that wave, small investors can survive in all market situations and even they can still benefit. But small investors must seek and find those waves to enter the market properly.

Fluctuating markets can also be used to buy low and sell high and I think that's what small investors have done. Likewise, with the traders because only then can they still make a profit.

So with the world's news, there is no need to worry about us but instead, we get the opportunity to use it for our benefit. And that's where the beauty of the crypto market is different from the stock market and others. We are required to be able to adapt in all situations so that we can continue to benefit.

This is so important, people think that bitcoin acts upon what we hear and see whereas it's all of the assets in the world that gets an impact based on news. However, we should also realize that there isn't going to be anything shocking because bitcoin is volatile and others are not.

So in the end, your house could go down in value 1% and you wouldn't even notice, the stock you hold could go down 10%, the gold price could bottom at 5% lower, meanwhile during the same period bitcoin could drop 50% and it has in the past. This is why I believe that we shouldn't be shocked about what's going on, it's totally normal and people think that news impacts bitcoin alone since other stuff are too small, but bitcoin can also recover that fast back to previous price as well.

Highly volatile markets like the crypto market are affected by small or big economic news, you have to get used to such things in these volatile markets.

For small investors, they certainly cannot control the market or change its movement. This is the job of the big whales, so as a small investor, the best thing to do is ride the wave. When you see a rising wave, take advantage and take your profits, and when you see a descending wave, you should watch or strengthen your position.

I agree that Bitcoin price is always affected by different factors, commonly in world market news.
For example, when the COVID-19 virus last 2020 started to spread to the whole world, we saw a massive dump on Bitcoin also in 2017, when there was news that Bitcoin will launch its first Bitcoin futures ETF, that's 2017 when we created an all-time high of $20,000.
Just be careful sometimes because some news are not true and it just trying to manipulate the price of Bitcoin.

In the realm of investments, we encounter two distinct types of players: retail investors and institutional investors. The primary distinction between these two categories lies in the vast disparity of their financial resources. Institutional investors possess a substantial percentage of overall investments, rendering their decisions highly influential in shaping market movements.

As retail investors, we operate on a much smaller scale, individually purchasing Bitcoin assets. Our influence is minuscule, as we merely follow the currents established by institutional investors. In reality, the news we receive provides insights into events that often elude the general public. However, a significant portion of this news is crafted with the intention of manipulating market dynamics and inciting panic among retail investors.

Frequently, retail investors react to circulating news by adjusting their investment strategies, while institutional investors adopt a contrarian approach. This practice is also observed in the stock markets of various countries, as this method proves highly effective in maximizing profits for institutional investors who collaborate closely with major media platforms.

I don't think this is correct. It is true that the value of assets depends on supply and demand, but bitcoin is not exactly the same. I mean, it's still a more manipulative market based on supply and demand. Supply and demand never create such huge fluctuations, only market makers with a lot of money can manipulate it easily. With a market cap of just $500 billion in bitcoin, it's too easy to manipulate because, as we know, many billionaires even own hundreds of billions of dollars worth of personal wealth.

Bitcoin market is completely on the supply to demand market. However it is really hard to predict the price of bitcoin. At the beginning the market doesn't have any external sources making changes in the market. Nowadays the market being speculative and have begun to coexist with the traditional market we were able to experience such kind of market movement connected to world market news. Even this doesn't make big impact, it happens to some extent. Beyond that it is the market itself making its moves. As the usage varies we can experience variations in the way the market movement happens.

Correlation does not mean causation. Bitcoin commenters, especially news sites, look at yesterday, notice a significant price change, look at what happened in the world and tie these events together. Except you can look at similar world events that happened earlier and notice that they didn't cause the same effect on Bitcoin's price.

Every time there is positive or negative news about the crypto world will certainly affect the price of Bitcoin and altcoins because every investor is always looking for new information so that they can continue to research about the coin they want to invest in, so the news has a big bump in market movements, but some information is only a prediction but many people are affected by these predictions so that disputes occur if everything written is not promising, So we as investors must have a stance so that we rely more on our own research.

Not only with bitcoin, but all the markets and assets in this world work like that. The world is a highly interconnected chain, so just one person having a problem affects the rest. But also depending on the association level, there will be different effects. Just like the war between Russia and Ukraine. Many countries are halfway around the world from war but will still be affected when war happens because it affects supply and demand around the world. No country can avoid it.

It depends on what type of news. But most assets are affected by big news. For example, the news about world economic problems is still lurking up to this day. It is nothing to do with bitcoin but somehow it is related. When the world is struggling financially, we expect all assets to have limited growth or the potential to drop in value centralized or decentralized.

If people and institutions are facing economic problems, most of the time they will withdraw their investments. The rich will at least try to do anything to safeguard their assets by holding cash and waiting for the right time to buy back. While ordinary people will be forced to use their investments until they can recover and starts saving again in order to invest.  

World market news is not affecting Bitcoin per say, it's affecting the Bitcoin holders and investors, fear and greed index works beautifully because it deals with humans, and humans are full of greed and emotions, one minute, they are in good shape and the next they freak out, so who are affected by bad news and good news? Isn't that we humans?

Imagine if all the human in crypto space today don't react to news, either good or bad, do you think Bitcoin will be affected? No it won't because no one will panic sell and FUD won't have any effect, this is why I still believe that those who are in the highest place to manipulate anything are they greatest benefactors in the world, that's cruel power.

Who will benefit the most out of FUD and dips in the market if not the ones releasing every bad news about this and that? Because they fully understand how the market works, isn't it?

High impact news either political, economic, war events, disease outbreak like that of corona virus, interest rate decision, unemployment data, CPI data has always been the driver of the market. Investors always pay attention to these News event in order to take investment decisions, especially the big players in the market, and hence move their money in the direction of the news whether positive or negative because these major market players wants to make profits and wouldn't want to take chances because of the amount of money that they're using for investment, so these people also have some investment into Bitcoin this is why news events will also effect the Bitcoin market.

Bitcoin price is affected by many factors, especially those related to the market and the economic-administrative situation of countries around the world. Therefore, investors and market participants need to update timely information and predict the market to make sound investment decisions. Is a very dynamic market, affected by constant changes in demand and supply. One of the main factors affecting the Bitcoin price is the volatility of the global economy.