Shanghai Stock Market down 8% - Bitcoin’s On-chain Transaction Volume up by 45%

kryptqnick

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Quote from: FanatMonet on February 03, 2020, 05:02:34 AM

Absolutely nothing unexpected. Stock markets, especially in China and Asia, will react very strongly to coronavirus, and European and American too.

Bitcoin now looks like a safe haven, for pumping money from exchanges, and waiting for all the events with the coronavirus.

Everything reacts to coronavirus. I did my TOEFL recently and saw an article that the tests are canceled in China. I have sort of a job in film industry, and today I read that China closing 70k cinemas due to the virus will cost the global economy about $1 billion! Fortunately, Bitcoin does not get affected, because it certainly cannot spread the disease and using it does not require attending any public places where someone might be infected.
As for transaction volume, though, I don't believe the data because everyone knows about volume getting faked and because I cannot find any well-established media writing about it.

BrewMaster

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Quote from: Lucius on February 04, 2020, 05:10:05 AM

Quote from: BrewMaster on February 03, 2020, 10:40:27 AM

~snip~

I think there is a big misconception that money is flowing from one market to another when it comes to Bitcoin. Stock traders or traders in any other markets still do not see Bitcoin as a safe haven, and still generally turn to gold, silver or bonds. Take, for example, bonds with negative interest, the value of that market was around $15 trillion last year, and it is go up 3 times in only 1 year.

Why didn't some of that money go to Bitcoin, and we are talking about $10 trillion (more than the value of all gold)? Because bonds even with a negative interest rate is a far safer investment than Bitcoin (for most investors).

i wasn't suggesting that all the money just flies over to bitcoin market, if that wasn't clear.
but i am sure that at least a small percentage of it does come to bitcoin as stock market crashes. there are many investors who aren't only focusing on one market, they "diversify" and put some part of their money in things like bitcoin that don't follow other markets. when those markets crash they increase their investment in bitcoin.

Wexnident

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Those are probably people whom view the Corona Virus as a Virus that can affect the world on the same level as ebola. Though currently as it stands, the current state of affairs from back the era of Ebola and today, there's a stark difference on the timespan that the virus was alotted to spread, and as such, China should be able to safely make a comeback from this.

Bitcoin rise probably has a small connection with it, but it shouldn't be all there is to it. Besides, if stock traders were going to exit the market, IMO, they'd buy hard assets instead of BTC, especially with how unstable BTC is right now. There's also the fact that Chinese government frowns upon the Bitcoin industry, but well that doesn't speak for the traders, but there should still be some level of influence there.

Artemis3

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Quote from: Lucius on February 04, 2020, 05:10:05 AM

Quote from: BrewMaster on February 03, 2020, 10:40:27 AM

~snip~

I think there is a big misconception that money is flowing from one market to another when it comes to Bitcoin. Stock traders or traders in any other markets still do not see Bitcoin as a safe haven, and still generally turn to gold, silver or bonds. Take, for example, bonds with negative interest, the value of that market was around $15 trillion last year, and it is go up 3 times in only 1 year.

Why didn't some of that money go to Bitcoin, and we are talking about $10 trillion (more than the value of all gold)? Because bonds even with a negative interest rate is a far safer investment than Bitcoin (for most investors).

It is not zero either. Some people do go into bitcoin. Of course the tradition has always been precious metals, this is nothing new.

The outbreak is affecting the market, both Shanghai and Hong Kong are affected. The extended holidays, closure of rail and roads, cities quarantined... Don't forget China is the world largest manufacturer, and its slowing down due to the virus containment. It might not be world economy devastating event, but it does have some impact (it might grow if the virus does break elsewhere).

That said in about a month, by March we will see if things worsened or recovered.

Ryker1

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Well, in my own opinion it seems like people have discovered the new era accessible Swiss Bank right on Bitcoin. People consider Bitcoin as safe to keep their finances and assets. Before this news, I already assumed that the Novel Corona Virus will affect the whole market special in Asia and in the Main Land of China of course. I hope the Virus wouldn't affect China's economy that much as it would affect the global economy, as well. Indeed, the impact on this to the cryptocurrency is good when it comes to diverting cash into other countries or keeping their assets into crypto.

pooya87

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Quote from: Xangle on February 03, 2020, 04:53:00 AM

There were 2.74M new wallets on the Bitcoin network

there is no such thing as "wallets on bitcoin network", you can't just make up words and associate a random number to them. there is no way of counting how many "wallets" or individuals using wallets there are either.

as for the relationship between Coronavirus, Chinese stock market and bitcoin i have to say there still is no convincing relationship. bitcoin is moving as it was expected to move. this trend was predicted months ago, that is expecting bigger bull market in early 2020 that grows the closer we get to halving.

additionally the spike in number of transactions is a normal thing that happens every now and then in bitcoin specially when its price is either rising or getting ready to rise.

Lucius

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Quote from: BrewMaster on February 03, 2020, 10:40:27 AM

~snip~

I think there is a big misconception that money is flowing from one market to another when it comes to Bitcoin. Stock traders or traders in any other markets still do not see Bitcoin as a safe haven, and still generally turn to gold, silver or bonds. Take, for example, bonds with negative interest, the value of that market was around $15 trillion last year, and it is go up 3 times in only 1 year.

Why didn't some of that money go to Bitcoin, and we are talking about $10 trillion (more than the value of all gold)? Because bonds even with a negative interest rate is a far safer investment than Bitcoin (for most investors).

BrewMaster

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people have been saying Coronavirus is going to affect bitcoin price and i still disagree with them but there is a way that it can affect bitcoin market and it is by crashing other markets. for example when the stock market crashes there is a lot of money fleeing it and a big portion of it can land in bitcoin market and help the price rise up.
since bitcoin is not affected by things like this, it is a good choice of investment and can easily see big rises. considering the fact that right now bitcoin is in the beginning of a bull market, we can expect big rises to come.

Lucius

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Even if the data from the OP is correct, the volume up and number of new wallets so far have no effect on the price. The whole virus situation is exaggerated, of course, thanks to the media who want the whole thing to look as dramatic as possible. This winter, tens of thousands of people will die from the effects of the common flu and this will not create any panic. This virus is actually doing the same thing, weakening the immunity of mostly elderly people (average age of dead is about 70).

Quote from: Artemis3 on February 03, 2020, 08:55:28 AM

But this virus seems to be spreading around the world, it is unfortunate but expect a bit of an uptrend due to this unforeseen event (which might add to the halving expectancy).

The reason the virus spreads around the world is quarantine, which is not really a real quarantine. Foreign nationals are evacuated daily, and there are many illegal crossings at the Chinese border. By that, I mean illegal migration and human trafficking that doesn't care about people's well-being or health - the West constantly needs cheap labor, and China has a problem with the population surplus.

Artemis3

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Quote from: Xangle on February 03, 2020, 04:53:00 AM

[Xangle Briefing] Shanghai Stock Market down by 8% while Bitcoin’s 7-Day On-chain Transaction Volume is up by 45%
- 2.74 million new wallets within the last 7 days
- Investors should watch for impact of January’s economic indexes like the ISM Manufacturing Index

According to the crypto disclosure platform Xangle, Bitcoin’s 7-day on-chain transaction volume has increased by 44.29% to $71.5B USD, and Ethereum’s volume increased by 35.45% to $1.7B USD. There were 2.74M new wallets on the Bitcoin network, and 520K on Ethereum. Alternative’s Crypto Fear & Greed Index stands at 57 for greed, indicating optimism in the market.

To the contrary, due to the Coronavirus outbreak, the Shanghai stock market opened after 6 days of suspended trading to start at -8.05%. The S&P VIX index increased by 21.63% to reach the highest point since October last year, an index which indicates the level of volatility expected for the next 30 days.

Investors are cautioned to look out for the release of January’s economic indexes which could have an influence on the token prices.

When "something" happens to the economy, it is common to see investors seeking refuge in metals and bitcoin. Currently China is getting closed down due to the wuhan coronavirus outbreak, i think they extended holidays to a month and they have quarantined cities and they even built a 1000 patient hospital in 10 days.

But this virus seems to be spreading around the world, it is unfortunate but expect a bit of an uptrend due to this unforeseen event (which might add to the halving expectancy).

blckhawk

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Nothing surprising. Chinese stock markets would surely be hurt by the coronavirus outbreak. Bitcoin, on the other hand, is not really affected by such since it's decentralized market doesn't care that much on these crisis.

The outbreak is quite a huge story that halted and slowed down businesses, even from franchises to other countries with their company based in China. Especially those businesses offering Chinese goods, since the normal reaction of people to such virus is FUD.

jseverson

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I'm not so sure China's slump has anything to do with this. Bitcoin hit 9k before the markets got decimated (and was even steadily growing before that), and the increase in wallets and transaction volume could be explained by high prices and low fees (people could be consolidating, moving money around, etc.).

It's certainly an interesting case though, since it looks like the traditional markets are about to take a beating. If it hits everywhere, we might be able to see how much trust Bitcoin has actually gained as a safe haven.

Quote from: davis196 on February 03, 2020, 07:35:49 AM

What if the on-chain transaction volume and the quantity of new wallets are going up because the bitcoin price is going up?This looks like a new price bubble to me?We are bullish again and the optimism dominates the crypto markets worldwide,but I guess this is only because of the upcoming BTC halving.The price increase will bring more noobs,who will buy more BTC,,and therefore the price continue going up.It's a classical price bubble.

Price bubble might be too strong considering the growth isn't really explosive by Bitcoin's standards. I do think halving is a big factor though, being only around 3 months away.

Pffrt

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Shanghai Composite Index has realized an 8% down which is the highest in a day in the last 4 years. In addition, the central bank have shared 150 billion yuan into the economy which I think is bad for the economy.
The changes Bitcoin transaction might be because of this reason but however, there was no big deal at the time of trade war which triggered China GDP 6% down as well. I don't think it's going to add significant value, I don't want too because having a bad economy in a country like China would affect the whole world and world have to cost a lot.

davis196

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What if the on-chain transaction volume and the quantity of new wallets are going up because the bitcoin price is going up?This looks like a new price bubble to me?We are bullish again and the optimism dominates the crypto markets worldwide,but I guess this is only because of the upcoming BTC halving.The price increase will bring more noobs,who will buy more BTC,,and therefore the price continue going up.It's a classical price bubble.

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Quote from: hello_good_sir on February 03, 2020, 06:54:12 AM

However, the crypto markets have actually been pretty positive during all the crisis - and I think there is a huge chance that a lot of investors shifting their portfolio's towards crypto. Which is pretty ironic in itself, crypto being seen as a "stable" investment during a crisis, while stocks and other traditional investments go to shit.

Really does provide some thought as to what could actually turn out to happen if there was a even bigger crisis, or a huge war broke out. Would it lead to the demise of fiat currencies/investments and a lot of growth for crypto-currencies.

We have yet another market-based argument for considering some cryptos (especially BTC) as "store of value" assets. But in the case of bigger crisis/war, there is one factor which is important - power supply. If there will be frequent and long blackouts caused by it (in countries/regions where there is a lot of biggest mining farms), then the hashrate of cryptos would go down causing panic.

hello_good_sir

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As horrible as the coronavirus has been for the world, and China in particular (349 deaths now, I think), it's very interesting to look at the stock and crypto markets amid the chaos. There's been a massive decline in the Chinese stock market, with there being a usual 10% drop every day.

However, the crypto markets have actually been pretty positive during all the crisis - and I think there is a huge chance that a lot of investors shifting their portfolio's towards crypto. Which is pretty ironic in itself, crypto being seen as a "stable" investment during a crisis, while stocks and other traditional investments go to shit.

Really does provide some thought as to what could actually turn out to happen if there was a even bigger crisis, or a huge war broke out. Would it lead to the demise of fiat currencies/investments and a lot of growth for crypto-currencies.

chennappa121

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We know what situation is going on through out the world due to Corona virus outcome and it's impact more on China from the past 20 days almost China's seven hot cities has been totally shut down. All kinds of financial activities and daily life activities have been shut down due to this impact more shanghai stock market has come down. If the same situation continues it will be more worse in upcoming days.

So may be the Chinese investor finding the alternative way to save their investment so that they can have the option in crypto so I'm thinking it will be the best way for them to invest in crypto now until all the problems get resolved.

FanatMonet

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Quote from: Kemarit on February 03, 2020, 05:15:30 AM

Quote from: FanatMonet on February 03, 2020, 05:02:34 AM

Absolutely nothing unexpected. Stock markets, especially in China and Asia, will react very strongly to coronavirus, and European and American too.

Bitcoin now looks like a safe haven, for pumping money from exchanges, and waiting for all the events with the coronavirus.

Right, and they're anticipating it China to inject US$174 billion of liquidity into markets amid new coronavirus outbreak.

And because of this panic, we might see some Chinese leveraging into BTC and that's why the transactions had increased since the reported outbreak. Although the Coronavirus Controls in China Are Delaying Crypto Miner Deliveries.

So let's see how it pans out and if it will really bring some positive impact to the price.

It is logical that they will try to prevent a collapse at all costs, another thing is how they will come out of this. The outbreak is only gaining momentum, and in the worst case, it can even lead to a recession in the Chinese economy, and even on a global scale.

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Quote from: Kemarit on February 03, 2020, 05:15:30 AM

Right, and they're anticipating it China to inject US$174 billion of liquidity into markets amid new coronavirus outbreak.

Yeap. They're definitely going to attempt to lessen the drop as a desperation move. Though if this Corona virus fiasco doesn't end any time soon, this money printing is pretty much just a band-aid solution for the Chinese markets. One thing's for sure, there's going to be a good amount of red 📉.

Also, they're limiting the short selling LOL: https://www.reuters.com/article/us-health-china-shortselling-idUSKBN1ZW0P2

Kemarit

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Quote from: FanatMonet on February 03, 2020, 05:02:34 AM

Absolutely nothing unexpected. Stock markets, especially in China and Asia, will react very strongly to coronavirus, and European and American too.

Bitcoin now looks like a safe haven, for pumping money from exchanges, and waiting for all the events with the coronavirus.

Right, and they're anticipating it China to inject US$174 billion of liquidity into markets amid new coronavirus outbreak.

And because of this panic, we might see some Chinese leveraging into BTC and that's why the transactions had increased since the reported outbreak. Although the Coronavirus Controls in China Are Delaying Crypto Miner Deliveries.

So let's see how it pans out and if it will really bring some positive impact to the price.

Topic: Shanghai Stock Market down 8% - Bitcoin’s On-chain Transaction Volume up by 45% (Read 253 times)