Does the bitcoin price go up and down correlation to the stock market?

South Park

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Quote from: Shasha80 on March 22, 2020, 06:45:32 PM

Bitcoin price movements up and down there is no correlation at all with the stock market. Because the stock market is moving based
company conditions, the world economy and the politics of a country. Unlike the cryptocurrency market, it moves based on supply and
demand directly from investors. So if you find the price movements of crypto and stock markets look the same, it is just a coincidence.

The correlation does not need to be perfect, there are some studies showing that recently there seems to be some correlation with the stock market and in my opinion that makes sense, as this market gets more popular and different traders and investors decide to invest in cryptocurrencies and the stock market then if the stock market crashes then cryptocurrencies could crash as well as those investors decide to sell some of their bitcoin and altcoin holdings to cover their losses pushing this market downwards as well.

Negotiation

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There is nothing to reflect here that the price of bitcoin never correlates with the bottom and the correlation with the stock market In both investments the stock market usually controls the bulls of the market. Bitcoin is under the control of none Demand increases as prices rise Demand decreases as prices fall It will depend on the investment.

clark.well

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Well the problem here is mostly assume that everything has a relation but the truth is it doesn't have one.
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Well, this just makes us trade believing that bitcoin have relation to others. But it seems, i am wrong. I need to reflect from this first before anything else.

coinfinger

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Many people thought it was correlated because of this drop, many people acted as if stock market was basically equal to crypto market, many of you talked about how bitcoin moved depending on the general economy and basically mimics it or whatever. What do you guys think now? There is no recovery and everything still sucks but bitcoin is up. Do you think it is correlated now?

Do you still believe it mimics the market? It obviously doesn't. Yes, there was something major and huge and that is why everything got affected, there was nothing in the finance world that wasn't affected, so we got affected by it as well and moved down, but look at us now, we are back to being a bull and strong market yet again, just stop being afraid of bitcoin market because in the long term it is always amazing.

Shasha80

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Bitcoin price movements up and down there is no correlation at all with the stock market. Because the stock market is moving based
company conditions, the world economy and the politics of a country. Unlike the cryptocurrency market, it moves based on supply and
demand directly from investors. So if you find the price movements of crypto and stock markets look the same, it is just a coincidence.

South Park

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Quote from: mu_enrico on March 18, 2020, 12:35:35 PM

Economic conditions influence all speculative assets, like gold, stocks, crypto, etc. Why? Because people put their "free money" to buy these assets. When the availability of free cash increases, these assets' prices would increase as well, and vice versa. The availability of free money is influenced by inflation, interest rates, GDP growth, etc.

However, it may not be a perfect correlation, especially in a good economy, because people have more investment options available.

Agreed, the correlation is not perfect but it is obvious that when the economy is doing well and there is a lot of free cash available then people are going to take more risks than they would under more difficult circumstances, and now that the stock market has crashed and we are officially in a bear market then other speculative assets are going to go down as well as people prefer to have cash in hand in the case the situation becomes even worse than what we have right now.

Finestream

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Quote from: cabron on March 20, 2020, 09:14:01 AM

Both markets were crashing during the time when it was pronounce Corona is already pandemic, I say both markets correlates to the fear of the situation and uncertainty. Cryptocurrency are growing as of now, I am not sure about the stocks market because stock market of some countries are being stopped. The traders in stock market are being held to stop the shortselling while crypto market goes on all year round.

Very clear advantage of crypto and why people should shift to trading crypto now.
However, on the effect on the pandemic, I guess crypto would also suffer the fall like the stocks and since our economy is in big trouble now.
It's unclear as to when the situation will be under control so people are in panic, investing is not good for them.

With the money flowing in crypto as it's definitely the most unstoppable market now, hopefully this brings positive effect in the long run.

coingecko

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The incident last week was probably driven by cascading margin calls.
Once the dust settle, that is after the coronavirus is beaten and after central bank completely intervened with the markets - it would be clearer on how correlative bitcoin is to the stock market

exstasie

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Quote from: beerlover on March 21, 2020, 05:10:23 AM

Nobody suspected it, you can't just blame people for not seeing how stock markets would be correlated to crypto.

It wasn't really correlated before, why it is now we don't know. However we are in a situation right now when everything loses, not just bitcoin or not just stocks but EVERYTHING is losing, hell even house prices are down right now, HOUSE PRICES, why would a house that worth 100k yesterday would worth 80k today?

This isn't about correlations, at least as we normally think of them. It's about market sentiment and investor risk tolerance.

When an economic crash occurs and the market anticipates a recession, virtually everything crashes except for stable fiat currencies and low risk bonds. It's a global flight to safe, risk-off assets.

Assface16678

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Quote from: beerlover on March 21, 2020, 05:10:23 AM

Nobody suspected it, you can't just blame people for not seeing how stock markets would be correlated to crypto.

It wasn't really correlated before, why it is now we don't know. However we are in a situation right now when everything loses, not just bitcoin or not just stocks but EVERYTHING is losing, hell even house prices are down right now, HOUSE PRICES, why would a house that worth 100k yesterday would worth 80k today?

I do not understand whats going through peoples minds, I have no clue how this finance crisis things works at all, I am not a financial analyst or anything or I can't even read charts so I don't know why but seriously, right now there is only that small mask type of thing that gained value, aside from that there has been nothing at all.

Previously at this year of 2020, there are a lot of things happened in just this January up to this March and one of this is the market price of the stock market because there is a shocking event happening and that is the spreading of the virus rapidly and some of the investor and play safe and pull their money into fiat currency and use that money to spend into the things they need like foods, clothes and hygiene to avoid the spreading of the virus, until now the market price of the bitcoin fall down into 3.9k dollars and recovering and becomes stable for a while into 5k dollars and from the previous weeks the price again becomes huge because there is an investment that happens and the profit we have today is over 6k dollar price of the bitcoin. Still, we cannot tell what happens next to the market price of the coin because still, it depends on the economy if they are trying to support the use of cryptocurrency and make a lot of contribution to the stock market. It takes time again before becomes stable and reaches the previous market price again.

beerlover

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Nobody suspected it, you can't just blame people for not seeing how stock markets would be correlated to crypto.

It wasn't really correlated before, why it is now we don't know. However we are in a situation right now when everything loses, not just bitcoin or not just stocks but EVERYTHING is losing, hell even house prices are down right now, HOUSE PRICES, why would a house that worth 100k yesterday would worth 80k today?

I do not understand whats going through peoples minds, I have no clue how this finance crisis things works at all, I am not a financial analyst or anything or I can't even read charts so I don't know why but seriously, right now there is only that small mask type of thing that gained value, aside from that there has been nothing at all.

cabron

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Both markets were crashing during the time when it was pronounce Corona is already pandemic, I say both markets correlates to the fear of the situation and uncertainty. Cryptocurrency are growing as of now, I am not sure about the stocks market because stock market of some countries are being stopped. The traders in stock market are being held to stop the shortselling while crypto market goes on all year round.

Subbir

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I don't think that the worth of Bitcoin increases below and below the stock exchange Because Bitcoin doesn't control anyone it depends on the market. it's determined by decentralization and market whales The stock exchange is typically related to the economy company If the economy of any country is disrupted the stock exchange goes down and it's nothing to try to to with the worth of Bitcoin.

jostorres

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It goes up and down according to stuff going on and sometimes when something happens it can affect both stock markets and bitcoin. Just because there is this thing that affects the prices of stocks and the prices of bitcoin doesn't mean that bitcoin is related to stock markets directly.

Just to give an example tomorrow there could be bomb going off in some big major city and stocks could go down there, that doesn't mean bitcoin will go down as well, or maybe tomorrow recession hits hard and prices go up and inflation happens, doesn't mean bitcoin has to be affected. We almost had a war, bitcoin wasn't affected. So, there are times bitcoin and stocks move differently, and times when they move together, pandemic is just one of the reasons why they could move together.

TrevorS

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Quote from: Janation on March 17, 2020, 07:55:46 PM

It is already said that it has no connection at all.

Some stocks might be related to cryptocurrency but it is not directly related and will affect the market as a whole. Some say that it is connected to stock because when the stock fell, the market follows but in that case, I think that is just a coincidence. If Bitcoin's price fell, for this reason, that would be the same but usually every time different reasons with the stock market.

Said by whom? You? Are you the ultimate truth?
How then do you explain today's growth that followed the rise in oil prices by 11%? This is probably just a coincidence, and the crypto market lives its own life separate from the rest of the world. It’s ridiculous.

mu_enrico

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Economic conditions influence all speculative assets, like gold, stocks, crypto, etc. Why? Because people put their "free money" to buy these assets. When the availability of free cash increases, these assets' prices would increase as well, and vice versa. The availability of free money is influenced by inflation, interest rates, GDP growth, etc.

However, it may not be a perfect correlation, especially in a good economy, because people have more investment options available.

MWesterweele

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Quote from: Maestro75 on March 18, 2020, 04:18:08 AM

Quote from: bitbunnny on March 10, 2020, 02:00:20 PM

As far as I know there is no proven correlation between crypto market and stock market. Cryptocurrencies are not in direct connection with stock market and factors that influence these two markets are completely different. In fact activities in real world, to say so, like financial and economy situation still doesn't significantly influence crypto market.
So, if happens at the same time that movements in stock market and crypto market look similar and connected that is to my opinion pure coincidence.

The way I see this is that of correlation. People take out money from the stock exchange and put it in cryptocurrency. Investors believe it is a safeguard for their investments. But this at the moment has not held because people are selling off their bitcoins for food at the same time as selling off their stocks because of coronavirus. So the two industries are falling at the same time.

For me yes of course, when Bitcoin price is go up and down the market is also moving, and I think they are related to each other. If you notice when the Bitcoin price going down the market and all crypto is also going down too, but when its goes up you will see the matket is also changing and the all crypto is also rising one by one.

Maestro75

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Quote from: bitbunnny on March 10, 2020, 02:00:20 PM

As far as I know there is no proven correlation between crypto market and stock market. Cryptocurrencies are not in direct connection with stock market and factors that influence these two markets are completely different. In fact activities in real world, to say so, like financial and economy situation still doesn't significantly influence crypto market.
So, if happens at the same time that movements in stock market and crypto market look similar and connected that is to my opinion pure coincidence.

The way I see this is that of correlation. People take out money from the stock exchange and put it in cryptocurrency. Investors believe it is a safeguard for their investments. But this at the moment has not held because people are selling off their bitcoins for food at the same time as selling off their stocks because of coronavirus. So the two industries are falling at the same time.

rodskee

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Quote from: greentech2 on March 08, 2020, 04:03:04 AM

On this weekend the crypto market goes down. Will it predict the stock market to go down on Monday?

for my point of views is YES,because i believe that Bitcoin holders also looking at the economic status and that can be checked by looking at what the stock markets doing so basically we are going with the stocks now as the reason is obvious.
but anyway the whole world is struggling now because of the Virus effect so let us look at the Good thing and not the bad,buy more for cheaper price and sell soon.

Janation

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It is already said that it has no connection at all.

Some stocks might be related to cryptocurrency but it is not directly related and will affect the market as a whole. Some say that it is connected to stock because when the stock fell, the market follows but in that case, I think that is just a coincidence. If Bitcoin's price fell, for this reason, that would be the same but usually every time different reasons with the stock market.

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