BTC and Nasdaq? | Bitcointalksearch.org

mk4

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Quote from: pooya87 on January 31, 2022, 12:40:44 AM

The reason why stocks like TSLA go down when bitcoin drops is because over the past years companies (of those stocks) have been buying bitcoin in large quantities and have somewhat tied their stock value to bitcoin value. So it is obvious that when bitcoin price drops, their stock should drop too.

Stocks like MSTR are for companies (like MicroStrategy) that live because of bitcoin! That means their whole existence depends on bitcoin so it is more than obvious that their stock should dump when bitcoin drops!

None of it has anything to do with your conclusion that "bitcoin is acting like tech stocks"!

We could make that assumption with MSTR, but BTC is only a small minority of Tesla's balance sheet.

Whether we like it or not, there's definitely some correlation between the more risk-on assets(BTC and high growth tech stocks). Take note that having market movement correlation doesn't mean that they're "pegged", obviously.

pooya87

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Quote from: mindrust on January 30, 2022, 11:50:05 PM

That's the thing since 2020 I believe. BTC and other cryptos have been acting like tech stocks rather than acting like a store of value (gold). This is a good thing if you want to have an exposure to the Nasdaq without buying any shares. TSLA and MSTR own lots of Bitcoins and somehow BTC reminds me of TSLA lately.

When BTC goes down, TSLA & MSTR (and COIN maybe?) also go down. So buying BTC is similar to buying TSLA or the other names I mentioned.

The reason why stocks like TSLA go down when bitcoin drops is because over the past years companies (of those stocks) have been buying bitcoin in large quantities and have somewhat tied their stock value to bitcoin value. So it is obvious that when bitcoin price drops, their stock should drop too.

Stocks like MSTR are for companies (like MicroStrategy) that live because of bitcoin! That means their whole existence depends on bitcoin so it is more than obvious that their stock should dump when bitcoin drops!

None of it has anything to do with your conclusion that "bitcoin is acting like tech stocks"!

mindrust

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Quote from: BernyJB on January 24, 2022, 10:58:58 AM

Ok, so I'm subscribed to Coinmarketcap's newsletter.
Today, I got to read an article about BTC's drop, and they stated that BTC "has been closely correlated with Nasdaq 100".

That's the thing since 2020 I believe. BTC and other cryptos have been acting like tech stocks rather than acting like a store of value (gold). This is a good thing if you want to have an exposure to the Nasdaq without buying any shares. TSLA and MSTR own lots of Bitcoins and somehow BTC reminds me of TSLA lately.

When BTC goes down, TSLA & MSTR (and COIN maybe?) also go down. So buying BTC is similar to buying TSLA or the other names I mentioned.

adaseb

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Right now is a good idea of how it’s not smart to blindly enter on any of these correlation moves. If you look right now, nasdaq is up 0.50% and Bitcoin is down 2.5%.

If you were to follow nasdaq moves you would of been sitting at a big loss. I tried trading this way in the past but there was no guarantee that the correlation was going to be followed. There is no law saying it needs to be kept at a complete exact peg. Hence don’t follow this method.

freedomgo

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Quote from: JooBra on January 24, 2022, 03:43:33 PM

Quote from: boyptc on January 24, 2022, 03:36:44 PM

It's because the other market is also down which is the same with btc and the whole crypto market.

But it's still two different markets and if you're asking if you have to learn more about it. Yes you should. If you want to gain more knowledge and understand both markets.

You're even the one that's going to have the benefits of it, so start learning more.

Usually Bitcoin follows Nasdaqs movements. If monday is red in nasdaq there is a big chance the BTC will follow it. But the thing is a bit more complex so you should really to know what you do.

Nasdaq is based by legitimate companies that are expected to turn into profits but these two different markets are still expected to have their own worth based on their value. Its good if we can also learn about nasdaq rather than focus on bitcoin alone since there is always no guarantee if the currency will always be worth it. Diversification will be helpful if we can aim for bigger profits so maybe we can also check how nasdaq can grow their profits aside from bitcoin investments.

JooBra

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Quote from: hugeblack on January 29, 2022, 06:54:28 AM

We live in an interconnected world where all events lead to a kind of interconnection. For example, when the covid-19 was declared a pandemic, all assests around the world were affected.

This does not mean that if the Nasdaq index falls, the Bitcoin will fall, but rather it means that at certain times, all assets are heading in the same direction, but it does not mean that they will be closely linked at all times.

Betting on the similarity of the Bitcoin and Nasdaq chart would be a big mistake and may cause economic losses.

Well I think if a big dip happens in Nasdaq BTC will follow it a bit but it will recover fast from it. We are seeing that general market now have similar path but that is this small period and that will change fast.

hugeblack

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We live in an interconnected world where all events lead to a kind of interconnection. For example, when the covid-19 was declared a pandemic, all assests around the world were affected.

This does not mean that if the Nasdaq index falls, the Bitcoin will fall, but rather it means that at certain times, all assets are heading in the same direction, but it does not mean that they will be closely linked at all times.

Betting on the similarity of the Bitcoin and Nasdaq chart would be a big mistake and may cause economic losses.

adaseb

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The nasdaq is just an weighted index for the largest 100 stocks on the nasdaq exchange. Just like the dow30 is the top30 blue chip stocks. They are just an index so you can see how the overall market is doing.

Will it help you trade Bitcoin. No not really because you have no idea whether the nasdaq will go up or down on a particular day. If you did have a crystal ball then you can just trade the nasdaq instead of Bitcoin.

Usually they move at the same time because tradings are watching them closely. However keep in mind sometimes the correlation disappears and following the index can lead to chop.

JooBra

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Quote from: boyptc on January 24, 2022, 03:36:44 PM

It's because the other market is also down which is the same with btc and the whole crypto market.

But it's still two different markets and if you're asking if you have to learn more about it. Yes you should. If you want to gain more knowledge and understand both markets.

You're even the one that's going to have the benefits of it, so start learning more.

Usually Bitcoin follows Nasdaqs movements. If monday is red in nasdaq there is a big chance the BTC will follow it. But the thing is a bit more complex so you should really to know what you do.

boyptc

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It's because the other market is also down which is the same with btc and the whole crypto market.

But it's still two different markets and if you're asking if you have to learn more about it. Yes you should. If you want to gain more knowledge and understand both markets.

You're even the one that's going to have the benefits of it, so start learning more.

EdenHazard

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It's not mandatory to learn the likes of nasdaq 100, dow jones, s&p 500 etc.

but it's better you know something about that for a little bit , just so you know things around crypto and trading itself in general.
there is no harm to get to know that , that's good gor your knowledge upgrade but yeah just like what people above me said , sometimes there is a correlation and could be coincidence but you should never take it as indicator , you are doing big mistake if you do so.

Ararbermas

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Yup if you're interested don't hesitate to make research because indeed all information can be found around in the internet so go ahead and invest time for it if you really want to get more specific information about that nasdaq. Just be aware to some fake people around the internet because usually there are some fake projects such copy paste and etc, wherein i want you to be aware on such thing however if you want to invest.

mk4

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People usually see these sort of correlations(to a small certain extent) just because we're looking back at the past; but basing your cryptocurrency-related moves solely on the stock market is mostly a bad idea.

Not to mention that they're barely correlated to be actually called "correlated assets" in a longer timespan. If we're going to nitpick specific days and/or weeks — then sure they can be correlated sometimes, but that really wouldn't be useful data, right?

NeuroticFish

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I keep telling this: people just love to find correlations between things.
However, if some prices are correlated for a few weeks, then they're not correlated for few months.. is that a proper correlation? Nope.
So, yeah, this correlation with Nasdaq means absolutely nothing. It's just a weak "reason" for somebody write some news in order to get more activity/clicks.

But yes, you may need to see a big picture. There are "moments" the investors are more willing to buy (no matter what) and "moments" they may liquidate/cash in both stocks and crypto. But they won't necessarily do both in the same time, since economics and inflation go on one route and bitcoin (and altcoin) markets go another route.

DooMAD

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Learn as much as you can, generally. But it's probably best to avoid assuming that a move in one market will mean the same move in another. It's possible to see correlations between any markets on occasion, but it doesn't mean BTC would always follow what the Nasdaq does. Coinmarketcap may get a sizeable amount of traffic, but it doesn't mean you should take everything they say too literally. And you could learn about every conceivable indicator and still get it wrong sometimes.

BernyJB

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Ok, so I'm subscribed to Coinmarketcap's newsletter.
Today, I got to read an article about BTC's drop, and they stated that BTC "has been closely correlated with Nasdaq 100".

https://coinmarketcap.com/alexandria/article/bitcoin-price-plunges-to-lowest-level-since-august?utm_source=ActiveCampaign&utm_medium=email&utm_content=Bitcoin+Hits+Lowest+Level+Since+August+%F0%9F%93%89&utm_campaign=Jan+21+Newsletter_FF&vgo_ee=tBEAPeNFNxgSd1Sj3RB503wFoqDlMHNmyq65fGLdufk%3D

Now, I don't know the first thing about Nasdaq 100. Do you guys think I should start learning about it?
Which other indicators (if any) should I be concerned about?

Thank you all in advance.

Topic: BTC and Nasdaq? (Read 174 times)