Does the bitcoin price go up and down correlation to the stock market? - page 2.

btcholder

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Quote from: greentech2 on March 08, 2020, 05:03:04 AM

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

I don't think any trade marketplace run that way. Bitcoin or crypto market never depend on stock market and stock neither depend on bitcoin market. Crypto and Stock markets are totally different from each other. Stock is not too sensitive market like crypto currency. Crypto currency is more complex than stock market. So it's totally useless predict in my thought. Read this amazing article you will be find why they didn't follow each other.

South Park

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Quote from: TrevorS on March 16, 2020, 04:00:04 PM

Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies,
which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

We must also not forget that in times of crisis like the one we are going through even good assets go down in price as people try to recover their losses by finally realizing their potential profits in other assets, so someone invested in the stock market which was losing a lot of money could have no other option but to sell his bitcoin to recover some of his losses, this in return makes the price of bitcoin to go down as well as many people do the same generating the crash we saw.

Ridwan Fauzi

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I heard sometimes ago who stated that bitcoin be like traditional market with the reason bitcoin and traditional market were decreased.

I don't have much knowledge about traditional market like stock and etc. But I just have an opinion that these thing is different. Bitcoin will have its own market, we know its volatility who didn't have by stock exchange.

That was just coinsident, the decreased price was affected by corona virus and the people just scared so as they sold the asset and move to the place that they consider is safe like gold.

Sadlife

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It look like that even Institutional investors are heavily invested in Bitcoin and other Cryptocurrency, the fluctuations of the stock markets made them liquidate their Bitcoins in order to cover losses cause some of them might have debts to pay, others are margin traders. So that's why the price plummeted hard this past week.

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Quote from: greentech2 on March 08, 2020, 05:03:04 AM

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

Its been said for how many times that previous markets like stocks/forex etc. has nothing to do with crypto market or does have correlation when it comes to price movement.
They are on different market or factors that do affect its movements.We know that crypto is very volatile and very unpredictable one compared to stocks.For now
we can say that they might be similar in times of crisis.We cant point out accurately but somewhat we can presume that its been affected by the same reason.

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Quote from: TrevorS on March 16, 2020, 04:00:04 PM

Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies,
which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

It happens many times already. I mean when the stock market booms, cryptocurrency tends to follow, and it's very evident in the current situation where the stock has fallen so hard and so does the crypto market.
Though there were some other reasons for this crash (e.g plustoken scam and dump), but the pandemic is surely one of them.
I'm not sure but it seems like Bitcoin has a slight correlation with the economic status.

exstasie

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Quote from: TrevorS on March 16, 2020, 04:00:04 PM

Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies, which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

Institutional investors hedging their risk played some role, but I think the overwhelming panic from world markets had a strong effect. I have always said BTC would suffer in any economic crash or recession scenario, and that's exactly what happened. High risk assets like BTC got massacred.

There were also some additional factors that made this crash especially bearish:

TrevorS

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Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies,
which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

FanEagle

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Crypto markets and stock markets might not always run simultaneously but they might work on a constant graph in conditions like the current ones. In the current market conditions, the markets are dependent on the fundamental analysis rather than technical analysis. Usually the markets depend on 2 types of analysis consisting Technical Analysis and Fundamental Analysis.

Forex and crypto markets might work on a same graph in fundamental analysis but they would never be same in case of technical analysis. Both the markets are entirely opposite but a common market crisis like the current ones would make both the markets work on a same scale. So yes, perhaps the forex markets would also dump on this monday.

Findingnemo

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Quote from: greentech2 on March 08, 2020, 05:03:04 AM

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

Actually there is no relation between the crypto market and stock market but both of them were driving through people's emotions but I don't think most of stock investors really analyse crypto market conditions so it won't have the effect of stocks but if stock market fells then it might affect crypto price movements in the same direction.

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Quote from: South Park on March 13, 2020, 03:57:13 PM

Most likely this has to do with the fact that in the past the majority of the people that were invested in bitcoin were libertarians, so when the stock market went down they decided to invest in bitcoin as a way to protect themselves from those movements but as bitcoin has become more popular then the kind of person that invests in this market has changed and now it has the same profile as those that invest in the stock market, so when the stock market goes down bitcoin goes down with it showing a higher correlation to it than in the past.

This might not be applicable each of the time. There are times when people move their money from stock markets into crypto markets and this should derive the price for crypto markets on the peak and leave the stock markers on the dip. This would then be opposite than what you said. Stock markets depend on various factors which might even include the working of the company behind the stock whereas there is nothing backed by bitcoins so the price for bitcoins would entirely depend on the TA.

TA for stocks and cryptos would never be on the same line as they both have various possibilities to work on an opposite direction.

South Park

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Quote from: bitgolden on March 13, 2020, 12:39:44 PM

I am afraid it became a lot like that nowadays. Normally back in the day it wasn't like that at all, it was actually correlated in reverse where when stock market crashed the bitcoin price went up. For some reason bitcoin was triggered when people withdrew their money from stock market, even if that didn't mean they put that money into bitcoin at all, it was still going up no matter where that money went to.

However, lately it has been more correlated directly where stock markets went down and bitcoin went down with it, no idea why it is like that or not but that happens more frequently nowadays. I hope soon we will actually have reverse again because today was a really really bad day for stock markets and it affected us a lot. I don't want to see stuff like that again hopefully.

Most likely this has to do with the fact that in the past the majority of the people that were invested in bitcoin were libertarians, so when the stock market went down they decided to invest in bitcoin as a way to protect themselves from those movements but as bitcoin has become more popular then the kind of person that invests in this market has changed and now it has the same profile as those that invest in the stock market, so when the stock market goes down bitcoin goes down with it showing a higher correlation to it than in the past.

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Quote from: bitgolden on March 13, 2020, 12:39:44 PM

I am afraid it became a lot like that nowadays. Normally back in the day it wasn't like that at all, it was actually correlated in reverse where when stock market crashed the bitcoin price went up. For some reason bitcoin was triggered when people withdrew their money from stock market, even if that didn't mean they put that money into bitcoin at all, it was still going up no matter where that money went to.

However, lately it has been more correlated directly where stock markets went down and bitcoin went down with it, no idea why it is like that or not but that happens more frequently nowadays. I hope soon we will actually have reverse again because today was a really really bad day for stock markets and it affected us a lot. I don't want to see stuff like that again hopefully.

While Bitcoin fell to $ 5,100, I immediately drew attention to the stock market and commodity market quotes. I made sure that almost everything falls in price. Even oil has fallen in price by almost half. Of course, the United States finds leverage to somehow preserve the value of its national currency, because unlike the dollar, the national currency of my country has significantly decreased in value. I believe that there are very important points in the financial and economic world that affect the current situation. Although so far I have blamed speculators for manipulating the cryptocurrency market, But it seems that they have nothing to do with it.

bitgolden

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I am afraid it became a lot like that nowadays. Normally back in the day it wasn't like that at all, it was actually correlated in reverse where when stock market crashed the bitcoin price went up. For some reason bitcoin was triggered when people withdrew their money from stock market, even if that didn't mean they put that money into bitcoin at all, it was still going up no matter where that money went to.

However, lately it has been more correlated directly where stock markets went down and bitcoin went down with it, no idea why it is like that or not but that happens more frequently nowadays. I hope soon we will actually have reverse again because today was a really really bad day for stock markets and it affected us a lot. I don't want to see stuff like that again hopefully.

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Quote from: greentech2 on March 08, 2020, 05:03:04 AM

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

The bitcoin and the crypto market doesn’t have any correlation to the stock market, because the stock market is for the external factors only like the economical performance of the country. So that if the crypto market will go up or down it wouldn’t affect the stock market. Crypto market and stock market move according to their rules and it doesn’t influence each other.

wozzek23

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Quote from: greentech2 on March 08, 2020, 05:03:04 AM

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

Stock market became as volatile as bitcoin recently, I mean it used to be such a stable thing but right now looking at it, it has a very stable long periods of time (like bitcoin) and than does something crazy as well (like bitcoin) which I can't fathom what shareholders must be thinking since they got in for a non-volatile long term thing with stock markets. Maybe bitcoin is not connected to stock markets but stock markets are connected to bitcoin? Who knows.

I personally have seen it drop like hell 10+ months ago or so and I have seen it do it again now as well and both times bitcoin went down beforehand and that was like a warning I suppose, or if you took it as a warning you would have been safer in stock market. So, I am not entirely sure if we can call them totally unrelated.

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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.

TheGreatPython

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I doubt there is too much of a correlation but we can't say it is totally unrelated neither. Remember last years start, the stock market crashed like hell and then the price of bitcoin crashed like hell as well, then at the April or so the price got leveled out in stock market and it did here as well, now because of corona the dow jones are all going down and there is still some sort of drop in bitcoin as well.

I am not saying they are fully correlated and they always act together because they don't but there are some few times when it does and you will never know when it will act together and when it will not act together unfortunately, it is just a mystery to all of us and we only get to learn it after it happened which it doesn't help us out at all.

maydna

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I think the stock market is related to the situations and conditions that happen in real life. As we see now, the world now has a concern with the coronavirus, and I heard that affect the stock market, and make the stock market get a red candle, but I don't know if that is true or not. But the stock market doesn't correlate with the crypto market because it's running in different ways. Perhaps, you can compare between the gold market and the stock market, and I think that both markets will correlate.

But we don't know the truth, and we can only guess if between the stock market and crypto market correlate as you said.

pawanjain

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The crypto market is independent of the stock market but has some indirect relations. For example, if a person is selling his stocks and has money left to invest then he "might" invest in crypto.
Not everybody will do this thing but some might. Also, some people who have invested in both the markets might take out all the money from his investments in both the markets simultaneously if he loses money in any one of them. So in my perspective, though crypto market is independent of the stock market, sometimes they do have some indirect correlation.

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