Author

Topic: Do you see the connection? (Read 243 times)

member
Activity: 616
Merit: 11
Decentralized Ascending Auctions on Blockchain
February 12, 2018, 02:50:11 AM
#19
If we sight a near example about the price status and who can directly influence the price, it will nearly found to the person called a big investors or large capitalist, because that people have enough amount of capital to invest, and they can also hold a large amount of bitcoin stocks until such time that bitcoin price will going up to the higher level. But we know that in this kind of problem, the creator of bitcoin have enough power to solve it. 
full member
Activity: 294
Merit: 100
February 12, 2018, 02:31:44 AM
#18
It has been pointed out there is a -negative correlation between VIX and bitcoin and the correlation has increased recently.
This is proven. Observed. Statistical. Not "I think" "I think"
hero member
Activity: 1806
Merit: 672
February 12, 2018, 02:26:36 AM
#17
Even though they are totally on a separate market the fear of it affecting other markets is still there and mostly the big investors are the ones who are pulling out early with their shares by selling it all. Usually this kind of moves are for preventive measures for them not to make any unnecessary losses. The funny thing is they are the one who are starting the panic in the market which influence other holders to sell their position.
jr. member
Activity: 168
Merit: 5
Now You Can Be The Bookmaker!
February 12, 2018, 02:09:22 AM
#16
I think when it comes to economies and financial markets everything is inter-connected. Its a real world application to the analogy of a butterfly flapping its wings in one country, causing a tornado in another. Events which appear irrelevent and uninfluential on a superficial level can carry sweeping large scale implications.

At the moment, stocks and crypto currencies are competitors perhaps similar to intel versus AMD or coke versus pepsi. To a limited degree this implies that money thrown at bitcoin can't be invested in the stock market or vice versa. In a sense they're exclusive in that fashion. However they also fall under the same categorization in terms of being investments which means during a bear market they could both suffer somewhat equally.

Equities and stocks being denominated in fiat implies they're in lockstep to the value of the US dollar. Over the long term bitcoin versus fiat could become a race to determine whether fiat in terms of federal government based liquidity is depleted before bitcoin runs out of network bandwidth, capacity great enough to sustain its growth.

Good day sir! Allow me to express my ideas, I honestly believe that you are correct, market is actually interconnected. And to add to the analogy that you have presented, Intel and AMD while both competitors is also a competitor for both Pepsi and Coke. Why? Imagine a person who wants to buy coke and or pepsi and instead found an Intel or AMD on his way to the market. Now lured because the offers are good. He/she might forget both coke or pepsi and instead buy computer parts. Considering the change of options and the available money on hand, as a possibility, the person may no longer be interested on buying either one of it and thus making the other thing a direct competitor eventhough they are far from being the same in nature. Now consider the possibilty that instead of participating in stock exchanges now they changing the option to exchanges in bitcoin? I do think this is what happen.
copper member
Activity: 1050
Merit: 294
February 12, 2018, 01:48:44 AM
#15
These two markets are not related to eachother in any way. Stock market traders have a completely different mind set and follows a different trading approach as compared to the crypto traders. Still the stock market traders don't take cryptos as wise investment.
I don't think so the downtrend or uptrend of Dow jones have any effect on cryptos.
hero member
Activity: 994
Merit: 504
February 12, 2018, 01:34:55 AM
#14
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?

Well, same people are investing with kind of stocks may it be crypto or regular stock, since Bitcoin is well known now, it maybe have an effect from the current down of price.
legendary
Activity: 1918
Merit: 1012
★Nitrogensports.eu★
February 12, 2018, 01:31:56 AM
#13
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?

Bitcoin and other cryptocurrencies are treated as an asset class. Looking at their volatility, they are a far riskier asset class compared to traditional ones like equity. When the cost of funding dries up and treasury bonds become attractive, there is in general a 'risk aversion'. So cryptos will crash when stock markets crash, and they should crash more violently.
hero member
Activity: 854
Merit: 1002
February 12, 2018, 01:03:59 AM
#12
Bitcoin, since now, has been mostly seen as a store of value, even in the case of a financial crisis. In 2013 during the cyprus crisis, the price rocketed in march and people started to rush into bitcoin, the price went from around 12$ to 250 at the end.

So in my opinion, a crash in the stock market would benefit for bitcoin price.
hero member
Activity: 980
Merit: 507
February 11, 2018, 01:57:26 PM
#11
I don't know anything that is happening with the stock market currently. So can you exactly specify what has happened.
Like you already have mentioned stick has nothing to do with crypto directly, indirectly also it doesn't affect much. It's the investors that affect the markets with their proposals on what they think bitcoin is.
legendary
Activity: 1372
Merit: 1252
February 11, 2018, 01:34:54 PM
#10
It would be foolish to think there is no relationship between them but to what extent is a difficult question to answer. There are only limited funds in the world and so if money is flowing in to one of the stock market or the crypto market it cannot be going in to the other. In this situation many would argue money will flow out of the stock market and in to the crypto market but I'm not personally convinced there will be a big redistribution of investments.

The correction on Bitcoin started way earlier than the correction on the Dow Jones. It's rather simple... we went way too high, too fast, and it was going to correct sooner or later. Unfortunately, Bitcoin didn't rebound the same day the Dow Jones went down, since we still had inertia from the bear trend. Now that we've bottomed (or so it seems) we could start watching Bitcoin do really well while a possible massive correction on the stock market has just begun, but people still think it's a small dip due the great performance since Trump entered the Whitehouse... we will find out in the near future, that is 2 years, and by 2 years Bitcoin may be ready to kick ass and take over.

If you look at the Dow Jones' chart since 1980, a correction would look pretty good on that graph, one similar to 2008 if not worse, then it will be time for Bitcoin to shine as an asset that's neutral to nation states.
member
Activity: 279
Merit: 16
February 11, 2018, 01:29:16 PM
#9
It would be foolish to think there is no relationship between them but to what extent is a difficult question to answer. There are only limited funds in the world and so if money is flowing in to one of the stock market or the crypto market it cannot be going in to the other. In this situation many would argue money will flow out of the stock market and in to the crypto market but I'm not personally convinced there will be a big redistribution of investments.
sr. member
Activity: 882
Merit: 403
February 11, 2018, 01:13:54 PM
#8
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?


To be honest op I really cannot say for sure whether both of these things are really connected to each other or not. Simply because this has only happened for the first time in history, at least that's what I think since I really haven't seen anything like this happened before. Now, to connect one happening to another, we first have to witness the same happenings for at least three or more times. But if ever both of these things really are connected, I think it will be a big issue for debate.
sr. member
Activity: 658
Merit: 260
CryptoTalk.Org - Get Paid for every Post!
February 11, 2018, 12:04:30 PM
#7
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?

I think they are connected by some means otherwise we would have never seen the prices dropping for the bitcoin. The Dow drop was real and it actually shown it's effect on the crypto currencies in positive way. I mean when it dropped then bitcoin dropped too while other altcoins followed the bitcoin and thus everything was down.

So surely there is some sort of connection between these two world. Anyway, considering the fact that they are affecting each other I'm sure that it will affect the bitcoin this time in positive way as more and more crypto investors will be created after loosing money in stock exchange and thus it will give the bitcoin whole new direction.
legendary
Activity: 2562
Merit: 1441
February 11, 2018, 11:18:48 AM
#6
I think when it comes to economies and financial markets everything is inter-connected. Its a real world application to the analogy of a butterfly flapping its wings in one country, causing a tornado in another. Events which appear irrelevent and uninfluential on a superficial level can carry sweeping large scale implications.

At the moment, stocks and crypto currencies are competitors perhaps similar to intel versus AMD or coke versus pepsi. To a limited degree this implies that money thrown at bitcoin can't be invested in the stock market or vice versa. In a sense they're exclusive in that fashion. However they also fall under the same categorization in terms of being investments which means during a bear market they could both suffer somewhat equally.

Equities and stocks being denominated in fiat implies they're in lockstep to the value of the US dollar. Over the long term bitcoin versus fiat could become a race to determine whether fiat in terms of federal government based liquidity is depleted before bitcoin runs out of network bandwidth, capacity great enough to sustain its growth.
legendary
Activity: 2170
Merit: 1427
February 11, 2018, 08:38:23 AM
#5
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?

It was pure coincidence, at least for now. In order to connect dots, we need to see this happen continuously, and as long as that isn't happening, just let it go for now. I don't add any value to the opinion of whatever analysts or experts, because they haven't exactly been a credible source with their failing forecasts. I find it more interesting to see Gold remain fairly stable since it is somewhat of a safe haven asset in difficult times, which should go up for Bitcoin as well due to their similarities. Gold has managed to remain pretty solid around the $1300 level per TO this year, while Bitcoin has taken a massive dive. Granted, Bitcoin was on decline already at that point, but it got dumped down just too much, even to the extent of the market being heavily oversold. If the stock market decline is going to last for a long while, it should result in a massive outflow of capital that will be parked elsewhere, because money doesn't like to sit still. It will in that scenario drive the Gold price up further, where some of that free capital might even flow into Bitcoin.
legendary
Activity: 2702
Merit: 4002
February 11, 2018, 07:56:49 AM
#4
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?
In fact, the news has a greater impact on the Bitcoin.world stock problems have indirect effect "When prices fall, gold and yuan /*cryptocurrency*/ will be a safe haven for investors".
If you notice, the Bitcoin drops quickly if bad news comes out, especially from East Asian countries "eg. China ban, SK ban, ..etc".
The digital currency market has also ballooned significantly over the past year "Bumping prices"which leds into strong corrections.
Also, the turnout of people on the low-value alts "eg. Ripple" gave Bitcoin a fake value "because they need bitcoin to get alt & tokens".
Gather all these factors led you to know why the bitcoin has fallen?
hero member
Activity: 882
Merit: 544
February 11, 2018, 07:51:13 AM
#3
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?
I dont see the connection between bitcoin price and the problems on world stock exchanges. In fact, if that is the case people should have had at least considered bitcoin as an hedge option during those times and helped boost price. My take in this matter is that there is something greater at work behind the scenes and a nasty situation will soon occur that might help boost bitcoin price or vice versa.
full member
Activity: 434
Merit: 103
Thinking on the higher plane of existence.
February 11, 2018, 07:02:24 AM
#2
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?
I believe that the world is starting for adoption of cryptocurrency because normally stock exchanges are limited to a specific region/location unlike cryptocurrency exchanges that is accessible by anyone in the world who have internet connection.
legendary
Activity: 2912
Merit: 1068
WOLF.BET - Provably Fair Crypto Casino
February 11, 2018, 05:57:26 AM
#1
In the last couple of weeks we could see the problems on world stock exchanges, the fall of Dow Jones etc. Analysts say this will continue in the future too.
Although Bitcoin isn't tied to that market directly do you see any influence of this situation on Bitcoin price? What is your opinion?
Jump to: