Can a Stock Market Crash affect Bitcoin? - page 2.

Philipma1957cellphone

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Quote from: TheCoinGrabber on August 15, 2019, 02:46:58 PM

We haven't had a really big crash since Bitcoin's inception (it itself is in response to one) so things could turn up different from what we expect. Most people here agree that investors might buy it up in an attempt to try to keep their money's value and that's a very logical thing to do.

But let's also not discount the possibility that some people would be pulling out their money for various reasons. For one, people would need more cash during such events and people who don't have much left might dip into their crypto savings.

This was the first post to mention that we have not had a meltdown in the market since 2008 or pre btc.

When I get home I will merit it.

Sadlife

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Yes it seems that people now is choosing bitcoin as an alternative storage for their assets incase some global crisis might happen like wars, deadly diseases or a financial crisis.

It seem that more and more people are starting to recognize, crypto currency along with its revolutionary features and benefits as Bitcoin became the top investment of the decade.

Janation

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Quote from: bobitza on February 04, 2020, 05:32:00 AM

Quote from: Naida_BR on August 15, 2019, 03:12:38 AM

I was thinking that investors would think the cryptocurrency market as an alternative to traditional investment products.
Having said that, my point was that those two markets have a reverse impact.

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.
The last days stock market crash seems that lead the market cap of the crypto market down.

Does the Stock Market has impact over the Bitcoin price?

I agree with your point! Stock market crash will greatly affect the cryptocurrency market. Maybe when the stock crash, people will divert their investment to Bitcoin. Bitcoin is currently rising very fast. This is a good sign if you choose bitcoin to invest!

Right now we can talk about it.

Because of the outbreak of corona virus, the stocks in China are affected and it is falling. Other countries are also affected by it since China is a big market and where big trades are happening. As the stock falls there, the price of Bitcoin increases. It is not connected at all, it is just all a coincidence that this is happening. It can affect the market in a way but not most of time.

travwill

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I believe that in this case, as in all others, everything will depend on where the media will lead the crowd.
After all, if someone wants to create artificial excitement related to the fact that the powers that be are transferring all their money to Bitcoin, connecting it with the fall of the stock market, then the crowd will obediently rush so the paths, even if in the end it turns out that this is all fake and manipulation. What is important is the scope with which such speculation is cranked up.

jostorres

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Quote from: Naida_BR on August 15, 2019, 03:12:38 AM

Does the Stock Market has impact over the Bitcoin price?

The Bitcoin market and the stock market are not really correlated, though sometimes there seems to be things that makes them seem as such, like similar price movement which happened earlier. The both are different from each other and are not going to affect each other. Bitcoin is not the only cryptocurrency that have had a similar price movement with stock, other cryptocurrencies have once done the same, it’s kind of a coincidence.

Quote from: STT on February 04, 2020, 06:15:03 AM

BTC isnt mainstream currency like a main market but it would without any doubt be altered by a stock market, bond or even commodities crash. The reason being its within the loop of 'hot money'

That Bitcoin is a hot money doesn’t even explain anything. So if you don’t mind, can you elaborate on what you mean by that and how stock market can affect the Bitcoin market? Because I don’t see anyway they are connected. To me they are two market that are far off different from each other.

Gheka

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Quote from: bobitza on February 04, 2020, 05:32:00 AM

Quote from: Naida_BR on August 15, 2019, 03:12:38 AM

I was thinking that investors would think the cryptocurrency market as an alternative to traditional investment products.
Having said that, my point was that those two markets have a reverse impact.

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.
The last days stock market crash seems that lead the market cap of the crypto market down.

Does the Stock Market has impact over the Bitcoin price?

I agree with your point! Stock market crash will greatly affect the cryptocurrency market. Maybe when the stock crash, people will divert their investment to Bitcoin. Bitcoin is currently rising very fast. This is a good sign if you choose bitcoin to invest!

I think you probably imagined too far and too much about this problem because when the stock market collapsed and there was a problem, it shows that the economy is facing trouble, maybe some investors will divert their operations to crypto but maybe they are still waiting for a comeback like we usually do with the crypto market. And the psychology of investors is always extraordinary, it's impossible to say whether it will have a big or small impact, we can only know that it will have an impact, which level is dependent on the interest of the investor

FanatMonet

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Quote from: STT on February 04, 2020, 06:15:03 AM

Quote

some time before it has some impact on other markets

A crash of BTC wont bring down gold or anything that I can think of, maybe some digital markets could be affected. I know BTC is quite important with parts of trading digital items sometimes, so liquidity could alter those prices. BTC isnt mainstream currency like a main market but it would without any doubt be altered by a stock market, bond or even commodities crash. The reason being its within the loop of 'hot money'
The daily exchange of cheap money from low interest rate regimes like dollar or similar can reverse on a crash or change to bonds over higher risk assets. Speculation and leverage are operative in BTC as we know there is futures, I use them daily myself to a small extent just for convenience but many would have no choice but to retract BTC long positions if margin calls forced them to raise liquidity. It becomes a chain reaction and BTC is within that loop at least partially and its volatile enough to be taken off balance by a shift in weight even at distance.

I would even say that the collapse of Bitcoin can have a positive impact on various stock and commodity exchanges, because there will be a transfusion of money from one place to another, in this case I would bet on gold, rare earth metals, lithium.

STT

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Quote

some time before it has some impact on other markets

A crash of BTC wont bring down gold or anything that I can think of, maybe some digital markets could be affected. I know BTC is quite important with parts of trading digital items sometimes, so liquidity could alter those prices. BTC isnt mainstream currency like a main market but it would without any doubt be altered by a stock market, bond or even commodities crash. The reason being its within the loop of 'hot money'
The daily exchange of cheap money from low interest rate regimes like dollar or similar can reverse on a crash or change to bonds over higher risk assets. Speculation and leverage are operative in BTC as we know there is futures, I use them daily myself to a small extent just for convenience but many would have no choice but to retract BTC long positions if margin calls forced them to raise liquidity. It becomes a chain reaction and BTC is within that loop at least partially and its volatile enough to be taken off balance by a shift in weight even at distance.

bobitza

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Quote from: Naida_BR on August 15, 2019, 03:12:38 AM

I was thinking that investors would think the cryptocurrency market as an alternative to traditional investment products.
Having said that, my point was that those two markets have a reverse impact.

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.
The last days stock market crash seems that lead the market cap of the crypto market down.

Does the Stock Market has impact over the Bitcoin price?

I agree with your point! Stock market crash will greatly affect the cryptocurrency market. Maybe when the stock crash, people will divert their investment to Bitcoin. Bitcoin is currently rising very fast. This is a good sign if you choose bitcoin to invest!

meto012

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Quote from: Shasha80 on February 03, 2020, 07:35:54 PM

Your guess is very reasonable, because it is true that some investors move their funds from the stock market to bitcoin, when stock
the market goes down. But not all investors do that, some investors want their funds to be safe. While investing in bitcoin very risky
with volatile prices. So some investors choose to invest in gold and property to secure their funds.

I guess the only thing we are here to wait is stock market crash then.
Otherwise I don't see how big investors could consider buying big amounts of crypto

Shasha80

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Your guess is very reasonable, because it is true that some investors move their funds from the stock market to bitcoin, when stock
the market goes down. But not all investors do that, some investors want their funds to be safe. While investing in bitcoin very risky
with volatile prices. So some investors choose to invest in gold and property to secure their funds.

HarmonyA

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Stock market crash can urge individuals to purchase digital currencies as a place of refuge resource just as others, for example, gold. Fundamentally, as it is currently, Bitcoin and other cryptocurrency is ordered as a speculation with exceptionally unpredictable qualities.

In the midst of financial struggle and hardship, the most noticeably awful things get, the more individuals go to things with characteristic worth as opposed to theoretical.

Clairvoyance

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Quote from: Naida_BR on August 15, 2019, 03:12:38 AM

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.

Crytocurrency investment is much more than an alternative but rather a big gamble to stock market investor. Most of them opt to invest in a much stable investment for they know how it is better to gain a little bit than to lose big time (Bitcoin's volatility). If stock market went down most of the trades will be disrupted not only cryptocurrency but global economy in general.

kro55

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*STOP NOWHERE*

Stock markets are very old and mature compared to bitcoin. Bitcoin is still in its early days and I think it will take some time before it has some impact on other markets like stock, gold, and oil. Right now crypto is struggling to find its way forward.

Accountsell

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Quote from: Naida_BR on August 15, 2019, 03:12:38 AM

I was thinking that investors would think the cryptocurrency market as an alternative to traditional investment products.
Having said that, my point was that those two markets have a reverse impact.

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.
The last days stock market crash seems that lead the market cap of the crypto market down.

Does the Stock Market has impact over the Bitcoin price?

If many stock brokers are related to bitcoins and if they buy and sell bitcoins depending on the stock markets by treating bitcoins as a market trading pair with their stocks than it might be possible that bitcoins can be affected due to the stock market crash.

Captain Corporate

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There will be affects of it for sure since its both finance related but nobody asked "where?" Cheesy

I guess we all assumed USA but reality is, if its in some third world nation, there has been plenty of stock market crashes in the past 10 years that we didn't even feel for sure because it was in some small country. When its on a huge nation we will feel it and many people who lost money on stocks may affect it badly on short term but would see bitcoin as a better option to save in the long term and affect it better if we are patient, thats basically what happened in 2019 and late 2018, stock market crashed, price went down but in long term went higher because of all the attention it got.

btc_angela

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Quote from: nickenburg on January 27, 2020, 01:20:15 PM

I have been thinking of that myself , what if a lot of people pulled out their money out of crypto when it crashed in 2017, and put it in to Stocks.
And then when the stockmarket is performing bad/or before a big event like the halvening they pull it out and put it back in to Crypto.

That might be a good strategy, it isn't weird to think that most people investing in to crypto also have a portfolio in stocks or the other way around.
So yeh I definitely think those 2 influence the price of eachother.

Well that could happen, but I think that majority of stock person doesn't want to delve with crypto or bitcoin's volatility that's why I doubt that this has occur. But the feeling is mutual though, there are crypto traders that doesn't want to trade stocks as well. So with that said, there might not be any correlation between the two financial markets.

red4slash

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Quote from: nickenburg on January 27, 2020, 01:20:15 PM

I have been thinking of that myself , what if a lot of people pulled out their money out of crypto when it crashed in 2017, and put it in to Stocks.
And then when the stockmarket is performing bad/or before a big event like the halvening they pull it out and put it back in to Crypto.

That might be a good strategy, it isn't weird to think that most people investing in to crypto also have a portfolio in stocks or the other way around.
So yeh I definitely think those 2 influence the price of eachother.

the technique is indeed not much different between the stock market and the crypto market, and your opinion could be the reason because people who trade and invest are usually not only in one place, and if they find potential profit then they will be able to take place in it.

nickenburg

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I have been thinking of that myself , what if a lot of people pulled out their money out of crypto when it crashed in 2017, and put it in to Stocks.
And then when the stockmarket is performing bad/or before a big event like the halvening they pull it out and put it back in to Crypto.

That might be a good strategy, it isn't weird to think that most people investing in to crypto also have a portfolio in stocks or the other way around.
So yeh I definitely think those 2 influence the price of eachother.

angrynerd88

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It will affect the Bitvoin price indirectly,Many stockmarket investors have diversification in crpto market if they loose from stock market will put all effort on crypto market to recover the losses.Excesaive rush to crypto raise the volatility and existing traders will get benefit from it.No matter you invest in crypto or atock market make sure must diversify the investment to recover the losses and face the bad time of market with courage.

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