Topic: Bitcoin's Correlation with Stocks is Dropping - page 2. (Read 297 times)
Well, this isn't a new thing for those who have been here and had experience the bigger event of Bitcoin halving which always took place every five year. Next month is the dee month for the said event and many are trying to get their investment into Bitcoin right now. Though, the rise of Bitcoin price is because of the next month and many would love to participate, comparing Bitcoin to stock when we'll know that, there is a bigger event ahead doesn't look to me as serious case here.
There may have been some differences between the two crashes:
1. The stock market crashed because many companies were expected to fail under the pressures of the pandemic
Most likely that is the case why the stock plunged because of the covid and businesses closures. Not only today that the stock market plummeted, every one should expect a down from a stock whenever there is a problem, a huge problem that the world is facing and every thing is affected. As the situation is getting hard for us to control, I guess it will continue to flow below the lines.1. The stock market crashed because many companies were expected to fail under the pressures of the pandemic
2. Bitcoin collapsed because some people expected a huge collapse since the stock market lost 5 trillion and bitcoin only lost <100 billion in market cap and had a lot lower market cap to start with... There was also no offered bailout strategy with bitcoin as there was to the stock market - and look how much better it's done already at rebounding...
Well as for bitcoin, I don't see any relation with it to stock market and the most likely scenario for it being down is the fear from its people because of the virus as people are needing money so maybe there is a massive pullout from individuals who own bitcoin. 
During steep market crashes, asset classes tend to converge. At the onset of the current stock market fall, both Bitcoin and gold had sharp correlation peaks with the stock market.
Now, however, Bitcoin is once again becoming a non-correlated asset.
You can't really draw a correlation just by looking at one week's pricing chart. It's not enough to conclude anything. When the global stock market is crashing - you need to remember that it is crashing for a reason. Majority of the industries are shut due to lockdown and that's why their stocks are crashing which is also bringing down the index.
Do you know the reason why the bitcoin price is going up and down? The answer is NO, so we are only assuming that it is happening due to the global sentiment but there's no way to verify the actual reason.
Bitcoin should ideally be the non correlated asset, but the current time is very very difficult to explain and speculate!
Do you know the reason why the bitcoin price is going up and down? The answer is NO, so we are only assuming that it is happening due to the global sentiment but there's no way to verify the actual reason.
Bitcoin should ideally be the non correlated asset, but the current time is very very difficult to explain and speculate!
There may have been some differences between the two crashes:
1. The stock market crashed because many companies were expected to fail under the pressures of the pandemic
2. Bitcoin collapsed because some people expected a huge collapse since the stock market lost 5 trillion and bitcoin only lost <100 billion in market cap and had a lot lower market cap to start with... There was also no offered bailout strategy with bitcoin as there was to the stock market - and look how much better it's done already at rebounding...
1. The stock market crashed because many companies were expected to fail under the pressures of the pandemic
2. Bitcoin collapsed because some people expected a huge collapse since the stock market lost 5 trillion and bitcoin only lost <100 billion in market cap and had a lot lower market cap to start with... There was also no offered bailout strategy with bitcoin as there was to the stock market - and look how much better it's done already at rebounding...
During steep market crashes, asset classes tend to converge. At the onset of the current stock market fall, both Bitcoin and gold had sharp correlation peaks with the stock market.
Now, however, Bitcoin is once again becoming a non-correlated asset.
People are just the only one who do make this thing complicated on where they do always correlate bitcoin/crypto market with typical stocks/forex/indexes
when it comes to price movement.We can presume but knowing totally the reason behind their volatility will always be a question.We have seen that crypto market
is starting to cling up or recover but on stocks? They are still on reds and i dont know why people do still keep on pushing this kind of analysis between
markets.
The stock market crashed because of the world problem facing now and the connection between bitcoin and stock is really limited.Both have their own economy, based on activity and based on earnings. Bitcoin price now surges above $6.7K because many people are in there home and can focus on online works like in crypto market.
They were correlated for psychological reasons imo. Fear, panic etc caused by the pandemic and the very strict measures, to be precise. Like I said before, people all act the same way in some events. Example: if mandatory lockdown is imposed, everyone will think about the need of cash for their utilities, food etc => they sell assets they own.
Now, as we've all probably seen, the tensions are way smaller than they were 2-3 weeks ago. People are just now starting to think rationally and not in panic, so I expect them to start buying safe haven assets. I would've expected this to happen way later though. But give the world one more crappy news about the virus, get them back into panic mode and see all assets and stocks go correlated once again..
Now, as we've all probably seen, the tensions are way smaller than they were 2-3 weeks ago. People are just now starting to think rationally and not in panic, so I expect them to start buying safe haven assets. I would've expected this to happen way later though. But give the world one more crappy news about the virus, get them back into panic mode and see all assets and stocks go correlated once again..
During steep market crashes, asset classes tend to converge. At the onset of the current stock market fall, both Bitcoin and gold had sharp correlation peaks with the stock market.
Now, however, Bitcoin is once again becoming a non-correlated asset.
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