Topic: Does Stock market crash effect the price of bitcoin? (Read 236 times)

it is possible that last year due to the Futures market announcement and the fact that they could go against the market and make profit, a surge of wallstreet wolves entered the market and pushed it up a little but most of the rise was a FOMO buy from the same newbies in the market who have been wishing for a drop below $9k to buy bitcoin but since that didn't happen they bought at $10k+ to $20k and caused the bubble.

Last year I read somewhere that one reason why there's a bull run last December is because of the traders from wall street shifted to Cryptos. And they are also the reason why the price of Bitcoin started to drop on the first quarter of 2018 because when the stock market is showing good indications, they started to go back to stocks and sell whatever crypto asset they have.

I think this depends on if the whales (which over the next couple of years will be institutional investors) view Bitcoin as a gold like hedge against the economy or simply a highly volatile speculative investment.

During a crash big money will flee to cash, and if they view Bitcoin as just another investment they will dump Bitcoin and cause a crash through panic selling by the wider market initiated by their dumping, making a positive correlation.

But if they view Bitcoin as a hedge, as digital gold, then they will move from stocks into Bitcoin, thus causing a negative correlation seeing Bitcoin spike like how Gold spikes during a market crash.

And of course there is the chance that Bitcoin will continue to follow its own cycles 90% disregarding what the world economy is doing.

Basically I have no idea. But if institutional investors get in and push the price way up and then there is a stock market crash I think we could see a Bitcoin crash as well. But if a stock crash is coming in the next year there is no way it'd cause a bitcoin crash because bitcoin would already be at the bottom. The stock market and the Bitcoin market are at the opposite ends of the cycles right now, so for that reason, if Bitcoin is low and in early days of the next bull market when stocks crash, I think we could see people flee from stocks in Bitcoin, thus giving it a digital gold value to investors and see a negative correlation.

If viewed from the type of investment, I don't think this has anything to do with the stock market. But if investors have only one capital, and they want to switch from the stock market to the crypto market, this is most likely to have a profound effect on the value of the crypto currency.

We lived in one world, and we are closer in the last 10 years because of Internet so I'm thinking that maybe every market is somewhat connected to one another. So if even the stock market crash, it can either bring new influx of money to crypto or into gold. But this is just another theory, and because bitcoin is fairly young, those data samples won't simply mean a thing if we try to plot out and correlate stock market crashes against bitcoin price.

i wouldn't necessarily call it the biggest driver, but i've always believed BTC and the crypto market has benefited from the "risk on" market cycle in the global economy, which has been characterized by easy credit. easy credit leaves investors scrambling for places to park money. most of it ends up in equities and real estate. some of it trickles into BTC, i'm sure.

if the stock market crashes, i don't think it will cause BTC to crash. i don't think there is a causal relationship there. but if we see a 2008 redux, BTC will probably crash for the same reasons stocks will. money will flow out of all speculative assets and everything will drop in value across the board.

This is certainly very influential on the price of bitcoin, this market condition will traumatize investors who buy at high prices. Bitcoin can also lose trust from investors because of this problem.

I do not see how that could be the case, the market of cryptocurrencies moves independently from the stock market so it is unaffected by that market, the only way I can think the crash of the stock market could affect bitcoin was if the crash was so big that people began to look for alternative forms of investment and in that case bitcoin will not be affected negatively but positively.

I think the stock market crash does have an impact on the value of bitcoin, because investors switch to investing in other investments. This affects the space for bitcoin and other altcoins, investors are starting to look for other opportunities to invest.

You can say that in a way, though it hasn't been proven since the crashes that we have had in the stock market lately aren't that great and the damage inflicted among investors are very minimal to cause them to transfer assets over a new asset class. There's also uncertainty about cryptocurrencies and the lack of platform to which there's a 'safety net' in case all hell break loose on cryptomarkets, resulting to them not touching cryptos any further. However should a global financial crisis arise, bitcoin is a great contender to hedge assets from the stock market and other traditional markets existing right now, alongside with gold--though I'm not betting on it, knowing that there are other assets capable of staying afloat amid such storm.

more or less, stock market do have some effect on bitcoin. its a 2 way traffic, either cash out bitcoin to stop stock market continue crashing, or investor decided to withdraw from stock market and safe keep their money on bitcoin. no one know which is more than another, but it does deal some substantial effect, both good and bad.

not exactly. lack of interest doesn't mean individuals are betting! the individuals are still individuals with their own opinion. and those who have high individual interest invest in bitcoin with a strong force. but it is not yet a big percentage of the world.
and as for manipulation it is not because of lack of interest, it may be at its peak but as long as the exchanges are not big enough to be able to absorb manipulators dumps things will remain like this.

true, but the effects of it is not that significant to be considered a thing in my experience.

Those who invest in Bitcoin do not live in a separate world, so any negative effects on the global economy will have an impact on the price of Bitcoin but not necessarily as a direct effect as between gold and dollar.

In my view, I do not see a direct correlation as most of the investors have bots programmed for sale and purchase according to specific numbers so the impact of the stock market will not be direct.

It is true that cryptocurrency market thrives on news sentiments which could be either positive or negative. I tend to agree that investors are looking for profit off their investment and by their calculations if the stock is falling and investors reason that by selling off stocks and buy into bitcoin will make a difference then they will go ahead and make that decision.

a stock market crash will either have no effect on bitcoin or will have a big positive effect on the price of it.

it is mainly because bitcoin has no connection with the stocks market and because of that it can act as an alternative that investors use in case of stocks crashing, where they pull their money out and put it in bitcoin.
but generally speaking bitcoin always moves on its own regardless of other markets. specially since markets like stocks market is local while bitcoin is global.

Considering that Bitcoin price is currently pegged to fiat currencies, in particular USD, a crash would definitely effect the value of bitcoin, it's worth would reduce without reducing in actual amount of USD per BTC.
As for it's long-term impact of Bitcoin it would depend on other factors.

 A market crash can be a manipulation made by smart players to make money, taking advantage of small investors who panic and sell.

 One of the biggest drivers of the Bitcoin price are low worldwide interest rates, leading individual investors to bet on Bitcoin.

I think stock market crash would effects the bitcoin price because people sell the stocks and search for another investment, like Bitcoin

Moreover, If stock market crashes and a positive news effects the bitcoin, then the price of Bitcoin will raise.

If the stock market crashes and a negative news effects the bitcoin, then the price of Bitcoin will fall.


What’s  your opinion about it?