Stock Market took a huge dive, Cryptocurrency follows

Soldierswitlittlefaith

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Quote from: pixie85 on March 13, 2020, 06:47:54 PM

Quote from: pawanjain on March 13, 2020, 10:45:37 AM

The reason why the stock market and the crypto market is falling because of the well known Covid-19 pandemic situation.
It's not because of any under performing asset or something. People are treating it as an investment and just because the situation is getting worse day by day, people are taking out all their investments whether it be stocks or crypto. Atleast, that's what I think is going on in the current market.

It's not crashing because of the virus. The virus has infected only a few percent of the world population and is expected to kill less than 2% of the infected.

Every year more people die from smoking cigarettes that this coronavirus will kill.

The markets are crashing because people fear the unexpected. They feer quarantine and border shutdown. They fear their workplaces and stores closing. They want to have money at hand for sudden expenses.

@pixie85,

sure bro,

FEAR, now their fear is yielding the expected result

madhavsinghrajput

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Quote from: LeGaulois on March 10, 2020, 02:08:44 PM

@avikz a correlation like?

I know a lot of people usually say "no relation" "coincidence" etc but it's not true. Often traditional markets and Bitcoin behave the same way. Not only during the bad periods, during the good ones too. There are so many opportunities to see it.
And why it shouldn't be? Bitcoin has more people using it as an investment that people using it for real cases, I mean BTC is traded like the traditional markets.

Even i don't think there is any relation between crypto market and traditional market behaving in similar manner.The only reason which i think can be relateble is that when traditional market behaves greenish,the capital in market increases simultaneously per capita income also increases which allows people to invest more and VCs can be one of the podium of investment.Other than that i didn't find any other relation.But still it is really confusing because when i think of "coincedence",These happen once or twice but these sort of coincidence had happen "n" number of times strange.I think we should say the reason behind there relation is still mysterious and yet to be discovered.

Broly46

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Everything went down the rabbit hole, what a way to end the Black Swan Friday, I’m prefer to sticking myself into the next anime, I think nobody care about market anymore? I didn’t heard anybody kill themselve over the index plummeted, or may be I missing something?

pixie85

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Quote from: pawanjain on March 13, 2020, 10:45:37 AM

The reason why the stock market and the crypto market is falling because of the well known Covid-19 pandemic situation.
It's not because of any under performing asset or something. People are treating it as an investment and just because the situation is getting worse day by day, people are taking out all their investments whether it be stocks or crypto. Atleast, that's what I think is going on in the current market.

It's not crashing because of the virus. The virus has infected only a few percent of the world population and is expected to kill less than 2% of the infected.

Every year more people die from smoking cigarettes that this coronavirus will kill.

The markets are crashing because people fear the unexpected. They feer quarantine and border shutdown. They fear their workplaces and stores closing. They want to have money at hand for sudden expenses.

Yatsan

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Quote from: nutildah on March 13, 2020, 12:43:51 AM

Quote from: pooya87 on March 12, 2020, 02:25:05 AM

that still doesn't mean bitcoin market "follows" stock market.

It's exactly what it means. You're clinging to an outdated belief at this point.

No direct corelation but somehow it produce a rattle effect to the other. The crypto and stock market itself is surely not related to each other, however, the people behind those market could possibly related or most probably they are just an individual. At this point of time, we are seeing the markets going down not because of the season but because of the main reason, the crisis. Covid-19 is extremely on high risk, people are panicking and worst they cannot contain themselves with what is happening right now. Look at btc, it dives for almost half of its value just yesterday as the corona virus continue to spread across the globe. But at the simplest terms, it is pretty natural for any market to crash, there will be a recovery pretty soon.

pawanjain

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Nothing lasts forever

The reason why the stock market and the crypto market is falling because of the well known Covid-19 pandemic situation.
It's not because of any under performing asset or something. People are treating it as an investment and just because the situation is getting worse day by day, people are taking out all their investments whether it be stocks or crypto. Atleast, that's what I think is going on in the current market.

isaac_clarke22

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Quote from: pooya87 on March 10, 2020, 11:30:28 PM

WRONG.
cryptocurrencies are all following bitcoin price which is why they are dumping 10% harder than bitcoin. and bitcoin is currently following a big panic in the market that has unknown origins and has nothing to do with stock market crashing since bitcoin has never followed and is not following any other market including stock market ever. i find it absurd that some people are trying to convince everyone that after 11 years bitcoin has suddenly decided to follow another market!

Seems like it, almost everything in CMC are all in red right now actually with just a little difference to the decrease. Due to the disease being declared pandemic, it seems like it is expected that the market will get a lot of panic selling although. I didn't know that stock market was crashing already though as I don't trade stocks just yet.
Bitcoin even fell below 4k last year and it isn't in line with what happen to the traditional market.

Soldierswitlittlefaith

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For stock market i can understand that due to the recent alarm around the globe but, for bitcoin i donot know why the rapid drop from 9,000 us to 5,772 usd (as of 13.03.20)

But, i think btc will adjust soon now or later because this is time where most stock investor's will be looking for an alternative source to invest.

Thanks
Soldierwitlittlefaith

Yaunfitda

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Quote from: omone1 on March 12, 2020, 11:57:49 PM

This is why it's very important we come to the reality that cryptocurrency is very volatile and precaution should be taken while investing, and never to promise anyone a certainty return. Some traders see this a major opportunity to buy the dip because this current state of the market won't endure for long. I have more confidence on the coin market to rebound faster than the stock market.

What reality?, it's been with us since the price went from $.1 - $ 19k in 2017 and then back to $3k in 2018, of course it is very volatile asset.

As for the correlation, obviously, every investors are into panic mode now, not just in crypto but the whole global traditional market, it is due to corona scare? or the oil war? Maybe, maybe not. One thing is for sure is that people are selling off to have some cash at hand in cash of a break-down.

nutildah

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Quote from: pooya87 on March 12, 2020, 02:25:05 AM

that still doesn't mean bitcoin market "follows" stock market.

It's exactly what it means. You're clinging to an outdated belief at this point.

omone1

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This is why it's very important we come to the reality that cryptocurrency is very volatile and precaution should be taken while investing, and never to promise anyone a certainty return. Some traders see this a major opportunity to buy the dip because this current state of the market won't endure for long. I have more confidence on the coin market to rebound faster than the stock market.

Wexnident

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I see no correlation to it tbh. I mean, for the stock market, the reason could clearly be said to be the ongoing Pandemic of the NCOV virus. Nothing weird about that, after all, it's already affected quite a huge part of the world and businesses have long seen the impacts it has made to their profits. As for the dive of crypto, I doubt the same could be said since technically, BTC is out of reach of the virus. Although, it might be an issue where since the economic part of the globe is kind of slowly crashing right now, you could say that BTC following that crash is pretty understandable. After all, even if BTC is on the internet, without an economy to support it, it's value is pretty useless.

chriss_coin

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Quote from: ?? on ??

BTC just crushed nose down 20 minuted ago.. Still no news why

Its fear... i wonder what happens when the NYSE opens in roughly 2 hours... So far its a bloodbath. Altcoins more than 50% loss since 3 weeks...

EDIT: Regarding Altcoins Investment: I think, similar to stock markets, the advice now is to look which company/foundation can actually survive another economic meltdown, aka recession or depression from now on and to invest in them. Whos CEO is actually capable of maneuvering his ideas and employees through such a troublesome time.
On a good side i think, we wont have 5000+ Altcoins after a few years anymore. It should clear up the field quite a bit...

Assface16678

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Quote from: pooya87 on March 12, 2020, 01:44:05 AM

Quote from: nutildah on March 12, 2020, 12:21:09 AM

Quote from: pooya87 on March 11, 2020, 11:32:49 PM

Quote from: nutildah on March 11, 2020, 06:14:43 AM

Bitcoin is a cryptocurrency. Irrespective of that, its pretty much been following the stock market in the last 2-3 weeks or so to a T:

my point is that you can not make a conclusion based on 0.3% of the lifetime of bitcoin! and that's what your chart shows, only about 0.3% of the total time bitcoin was around. things like that are called a coincidence.
now if that was half a year of following stock market then it would have been a different discussion.

That same 0.3% is the same period of time that stocks have been in a bear market since the birth of bitcoin. Therefore, its reasonable to believe its not just a coincidence. The last time the stock market had a dip of reasonable size (from Sept - Dec 2019) -- guess what -- bitcoin dipped as well.

we have had similar stock market crashes in the past both in US stock market and other countries but bitcoin either never even reacted to them or was rising.
example: September 2018, bitcoin price crashes about 50% and a couple of days later stock market has a 20% crash while bitcoin price remains the same during that crash.
from December 2015 to January 2016 is a month long bear market in stock market while bitcoin price is pretty much stable.
June 2015 is a brutal time for Chinese stock market where it loses nearly 50% meanwhile bitcoin price goes up from $200 to $300
and many more... so yeah i still say it is coincidence and market manipulation that has led bitcoin price going down at the same time.

Again we are now experiencing that the market price of all of the currency is falling down and it is not a good sign because before on the previous years it takes a lot of days and months before we can get a lot of payment but now the price of the coins drops on just a single week and this is not quite good also or affects the whole market transaction and the pandemic diseases today there are a lot of people stating that the cause of the downfall of the price is having hoarding and pulling out all of the investment because of the virus and they are using this to keep safe and use their coins to buy all the things they need to avoid the virus. Also, that kind of action affects the whole market and now the stock and the price of the coins are falling rapidly.

pooya87

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Quote from: nutildah on March 12, 2020, 02:04:53 AM

You're ignoring the fact that Bakkt didn't open until Sept. 2019, and CME bitcoin futures opened in December 2017. Institutional investing in bitcoin before then was happening but relatively stifled compared to what its been since. I'd say its nuts to continue to operate under the assumption that Wall Street still has zero influence on the price of BTC, but be my guest.

i never made such claims!
i agree that Wall Street does have some influence on bitcoin price and it may have grown over the past couple of years due to Futures and stuff like that but that still doesn't mean bitcoin market "follows" stock market.

nutildah

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Quote from: pooya87 on March 12, 2020, 01:44:05 AM

we have had similar stock market crashes in the past both in US stock market and other countries but bitcoin either never even reacted to them or was rising.
example: September 2018, bitcoin price crashes about 50% and a couple of days later stock market has a 20% crash while bitcoin price remains the same during that crash.
from December 2015 to January 2016 is a month long bear market in stock market while bitcoin price is pretty much stable.
June 2015 is a brutal time for Chinese stock market where it loses nearly 50% meanwhile bitcoin price goes up from $200 to $300
and many more... so yeah i still say it is coincidence and market manipulation that has led bitcoin price going down at the same time.

You're ignoring the fact that Bakkt didn't open until Sept. 2019, and CME bitcoin futures opened in December 2017. Institutional investing in bitcoin before then was happening but relatively stifled compared to what its been since. I'd say its nuts to continue to operate under the assumption that Wall Street still has zero influence on the price of BTC, but be my guest.

pooya87

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Quote from: nutildah on March 12, 2020, 12:21:09 AM

Quote from: pooya87 on March 11, 2020, 11:32:49 PM

Quote from: nutildah on March 11, 2020, 06:14:43 AM

Bitcoin is a cryptocurrency. Irrespective of that, its pretty much been following the stock market in the last 2-3 weeks or so to a T:

my point is that you can not make a conclusion based on 0.3% of the lifetime of bitcoin! and that's what your chart shows, only about 0.3% of the total time bitcoin was around. things like that are called a coincidence.
now if that was half a year of following stock market then it would have been a different discussion.

That same 0.3% is the same period of time that stocks have been in a bear market since the birth of bitcoin. Therefore, its reasonable to believe its not just a coincidence. The last time the stock market had a dip of reasonable size (from Sept - Dec 2019) -- guess what -- bitcoin dipped as well.

we have had similar stock market crashes in the past both in US stock market and other countries but bitcoin either never even reacted to them or was rising.
example: September 2018, bitcoin price crashes about 50% and a couple of days later stock market has a 20% crash while bitcoin price remains the same during that crash.
from December 2015 to January 2016 is a month long bear market in stock market while bitcoin price is pretty much stable.
June 2015 is a brutal time for Chinese stock market where it loses nearly 50% meanwhile bitcoin price goes up from $200 to $300
and many more... so yeah i still say it is coincidence and market manipulation that has led bitcoin price going down at the same time.

carlisle1

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Quote from: Qcrypto on March 09, 2020, 02:09:54 PM

Hate to be the bearer of bad news...
Well, bad for some, good for others.

Such is life...same as that song:

"The power of love, is a curious thing,
make a one man weep, and another man sing"

Could be perfectly translated into Trading, just change the word "love" with "market"

As of today, March 9th, 2020:
Stocks Index Dow Jones is down by $2000 (-8%)
Cryptocurrency Market cap is down by $18B (-7,8%)

What do you make of it?

Source

looks like becoming truth ,because yeah market of crypto is falling down with stock market and i hate seeing this.
i have been expecting a 10$k level for the whole months before halving and now here we are fading bad though the good part is i now can buy lower price for my target currencies to be added in my folio.

but with so many bad news happening now?we can expect more downtrend this month and may recovery comes next month.

davis196

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Quote from: Bohr256 on March 12, 2020, 12:24:56 AM

When all major markets around the globe are all red, and btc is no exception, that's a pretty damn big 'coincidence,' don't you think?

Who is saying that this is a coincidence?
By the way,is Bitcointalk a stock market forum now?So many people posting threads about the stock markets it makes me wonder are we still a cryptocurrency forum. Grin

There's nothing we can do,except waiting for the global "coronarecession" storm to go away slowly.The prices ,both stock and crypto,will recover,sooner or later.
Unfortunately,according to recent studies,the coronavirus is here to stay and the peak might be at the end of September.

Ozero

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Quote from: Bohr256 on March 12, 2020, 12:24:56 AM

When all major markets around the globe are all red, and btc is no exception, that's a pretty damn big 'coincidence,' don't you think?

What is this coincidence? The spread of coronavirus disrupts the ordinary life of people, disrupts processes in any area of human activity. Therefore, the level of production, trade, and so on. Although the cryptocurrency market mainly depends on the availability of the Internet and certain technical means, the lack of necessary direct contacts between people, caused by the need to take protective measures against coronavirus, also negatively affects this market.

Bohr256

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When all major markets around the globe are all red, and btc is no exception, that's a pretty damn big 'coincidence,' don't you think?

nutildah

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Quote from: pooya87 on March 11, 2020, 11:32:49 PM

Quote from: nutildah on March 11, 2020, 06:14:43 AM

Bitcoin is a cryptocurrency. Irrespective of that, its pretty much been following the stock market in the last 2-3 weeks or so to a T:

my point is that you can not make a conclusion based on 0.3% of the lifetime of bitcoin! and that's what your chart shows, only about 0.3% of the total time bitcoin was around. things like that are called a coincidence.
now if that was half a year of following stock market then it would have been a different discussion.

That same 0.3% is the same period of time that stocks have been in a bear market since the birth of bitcoin. Therefore, its reasonable to believe its not just a coincidence. The last time the stock market had a dip of reasonable size (from Sept - Dec 2019) -- guess what -- bitcoin dipped as well.

pooya87

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Quote from: nutildah on March 11, 2020, 06:14:43 AM

Bitcoin is a cryptocurrency. Irrespective of that, its pretty much been following the stock market in the last 2-3 weeks or so to a T:

my point is that you can not make a conclusion based on 0.3% of the lifetime of bitcoin! and that's what your chart shows, only about 0.3% of the total time bitcoin was around. things like that are called a coincidence.
now if that was half a year of following stock market then it would have been a different discussion.

Yudhisthir

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And the stock market had a correction today so did crypto. I said it's correction because I don't think the stocks could go any bullish on such dire circumstances where people are not being able to work and factories are closing. The exact effect on crypto is still to be seen as almost all of crypto operation are automatic and requires almost none human intervention.

Questat

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I believe crypto will be independent from stocks, those stocks investors are aware of crypto, so probably they also consider crypto as a good alternative for investment, this is a global money where no one owns but those who hold bitcoin.

it's true that bitcoin dump when the stocks are down, but it does not happen all the time, for sure crypto will recover soon like it always do.

nutildah

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Quote from: pooya87 on March 11, 2020, 01:34:40 AM

Quote from: nutildah on March 11, 2020, 12:58:56 AM

Who said other cryptos weren't following bitcoin? Of course they follow bitcoin -- nobody is disputing that.

well, OP is saying "cryptocurrencies are following stock market" which is wrong because they are following bitcoin. whether bitcoin is following stock market is disputable and although you raise an interesting point but i still say it is not following it.
this drop is like any other similar drops due to a negative news. whales using this panic as an opportunity to dump/manipulate and short bitcoin to make profit then buy the bottom.

Bitcoin is a cryptocurrency. Irrespective of that, its pretty much been following the stock market in the last 2-3 weeks or so to a T:

This is only a recent phenomenon, and it could very well be that "correlation does not equal causation," etc. I'll also point out a strengthening year-over-year correlation between two more traditional assets: the Grayscale Bitcoin Trust (GBTC) and the SPDR S&P 500 ETF Trust (SPY). The first is a relative indicator for the movement of bitcoin and the second of the stock market. There was zero correlation between these two assets in 2019, but its a 38% correlation thus far in 2020.

Here is the average correlation of daily returns between the two assets during the following years:

2016: -1%
2017: 9%
2018: 13%
2019: -3%
2020: 38% thus far

https://www.portfoliovisualizer.com/asset-correlations

Whats interesting is if you look at the "Rolling Correlations" tab, it would appear that GBTC is as inversely correlated to SPY as it is positively correlated, which would yield an average 0% correlation.

You can see an uptick in rolling correlation beginning in early/mid Feb. I suspect the trend is in the positive direction, at least for now.

meanwords

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What I think is that it is just a coincidence that Bitcoin and stock market got dump at the same time. I'm sure that if plustoken scam didn't happen, Bitcoin would still be flying right now. We just had a problem along the way and I don't think that Bitcoin and stock market is correlated that much but it is sure that they almost have the same investors.

pooya87

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Quote from: nutildah on March 11, 2020, 12:58:56 AM

Who said other cryptos weren't following bitcoin? Of course they follow bitcoin -- nobody is disputing that.

well, OP is saying "cryptocurrencies are following stock market" which is wrong because they are following bitcoin. whether bitcoin is following stock market is disputable and although you raise an interesting point but i still say it is not following it.
this drop is like any other similar drops due to a negative news. whales using this panic as an opportunity to dump/manipulate and short bitcoin to make profit then buy the bottom.

nutildah

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Quote from: pooya87 on March 10, 2020, 11:30:28 PM

WRONG.
cryptocurrencies are all following bitcoin price which is why they are dumping 10% harder than bitcoin. and bitcoin is currently following a big panic in the market that has unknown origins and has nothing to do with stock market crashing since bitcoin has never followed and is not following any other market including stock market ever. i find it absurd that some people are trying to convince everyone that after 11 years bitcoin has suddenly decided to follow another market!

Who said other cryptos weren't following bitcoin? Of course they follow bitcoin -- nobody is disputing that.

To say it has "nothing to do with stock market crashing" is probably incorrect. The reason why is because Wall Street is currently more invested in bitcoin than ever before, thanks to futures trading vehicles launched just in the past couple of years. Wall Street considers bitcoin to be the highest risk asset among high risk assets, so naturally it will be the first dumped when a panic happens.

Another thing to consider is that we only know how bitcoin reacts to a bull stock market; perhaps only now for the first time ever are we seeing how it reacts to a bear stock market.

Kuffy

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The real Jet Cash.

We are in a completely new world. Stock markets are no longer based on fundamentals, but based on the activities of the central banks, and people are starting to realise that. The market started to tank over the corona virus and the oil wars, and that created a bear squeeze. Speculators are having to sell their safe haven assets to cover themselves, and this has affected the price of gild, silver and Bitcoin. These movements can create their own secondary bear squeezes. It looks as if it is another great time for the acquisition of safe haven assets like Bitcoin. Just make sure you get your timing right.

xvids

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Quote from: mk4 on March 10, 2020, 11:52:57 PM

We're already in year 2020 but apparently people still fail to realize that bitcoin and the cryptocurrency markets are volatile as hell; as if price drops like this are anything new. Stop looking at short-term price movements and just simply look at the bigger picture.

I agree crypto has been around for almost 11 years now and they still haven't got used to it's volatility?
We could see more of this kind of events in the future and I am sure if they look at the past price as well,
This isn't the first time that BTC has drop drastically and I am sure that it wouldn't be the last.
Only those who look for a short time investment would be scared of this crash because the long term holders are surely enjoying this because it is another chance for them to accumulate more of what they already have.

samcrypto

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Quote from: mk4 on March 10, 2020, 11:52:57 PM

Quote from: Qcrypto on March 09, 2020, 02:09:54 PM

Cryptocurrency Market cap is down by $18B (-7,8%)

What do you make of it?

We're already in year 2020 but apparently people still fail to realize that bitcoin and the cryptocurrency markets are volatile as hell; as if price drops like this are anything new. Stop looking at short-term price movements and just simply look at the bigger picture.

Yes, its very volatile and I think every bad news around the world bitcoin is moving negatively, we should to be used on that kind of trend because that's our story 10 years ago and we are still on that kind of trend. Bitcoin hits the level of $3k and jump high up to $13k within a year, learn from it. Cryptocurrency follows the current trend in the market, and its follows the current panic of the people but with the current situation I don't think stocks is the reason of the dump.

avikz

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Quote from: LeGaulois on March 10, 2020, 02:08:44 PM

@avikz a correlation like?

I know a lot of people usually say "no relation" "coincidence" etc but it's not true. Often traditional markets and Bitcoin behave the same way. Not only during the bad periods, during the good ones too. There are so many opportunities to see it.
And why it shouldn't be? Bitcoin has more people using it as an investment that people using it for real cases, I mean BTC is traded like the traditional markets.

Stock market is based on fundamentals. Stock market is regulated. Every index is built on some certain stock indexes, like Nifty in India is built on 50 stock indexes, Nikkei in Japan is built on 225 blue-chip stock index. The calculation is more complex but this is the basic of stock market indexes. So stock markets are bound by geography. So they are more prone to the local issues rather than the global issues. Like in China, a lot of local industries and factories are shut due to COVID-19. So it's no wonder that Chinese stock market is facing a big hit. So when Chinese stock market was started to drop, bitcoin was still increasing to 10k regime, precisely during end of Feb to beginning of March. So it's highly unlikely for bitcoin to imitate the behavior of traditional stock market.

For the same reason, technical analysis that works on stock market, doesn't always works on crypto market, because crypto market serves a global audience. It's not easy to use the existing techniques to capture the human emotion of such broader geography!

mk4

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Quote from: Qcrypto on March 09, 2020, 02:09:54 PM

Cryptocurrency Market cap is down by $18B (-7,8%)

What do you make of it?

We're already in year 2020 but apparently people still fail to realize that bitcoin and the cryptocurrency markets are volatile as hell; as if price drops like this are anything new. Stop looking at short-term price movements and just simply look at the bigger picture.

pooya87

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WRONG.
cryptocurrencies are all following bitcoin price which is why they are dumping 10% harder than bitcoin. and bitcoin is currently following a big panic in the market that has unknown origins and has nothing to do with stock market crashing since bitcoin has never followed and is not following any other market including stock market ever. i find it absurd that some people are trying to convince everyone that after 11 years bitcoin has suddenly decided to follow another market!

Harlot

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Quote from: LeGaulois on March 10, 2020, 02:08:44 PM

I know a lot of people usually say "no relation" "coincidence" etc but it's not true. Often traditional markets and Bitcoin behave the same way. Not only during the bad periods, during the good ones too. There are so many opportunities to see it.
And why it shouldn't be? Bitcoin has more people using it as an investment that people using it for real cases, I mean BTC is traded like the traditional markets.

Bitcoin Outperforms Nasdaq 100, S&P 500, Grows Whopping 37% in 2019

It doesn't seem like it, they may have the same movements during the bullish and bearish market in terms of trajectory but Bitcoin has been always outperforming the stock market in terms of gains, the gains are considerably big that NASDAQ even called it the best performing asset in 2019. So even if they have the same trajectory in the market you will always see Bitcoin outperforming gains compared to most bluechip stocks we have in the market. I'm also part of the people seeing no correlation between the crypto and stock market but this event is an exemption with us having a global pandemic at hand I know that it has influenced and inserted fear among all investors in all types of markets that is why we are having these kinds of sell-offs happening right now.

LeGaulois

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@avikz a correlation like?

I know a lot of people usually say "no relation" "coincidence" etc but it's not true. Often traditional markets and Bitcoin behave the same way. Not only during the bad periods, during the good ones too. There are so many opportunities to see it.
And why it shouldn't be? Bitcoin has more people using it as an investment that people using it for real cases, I mean BTC is traded like the traditional markets.

avikz

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Quote from: Qcrypto on March 09, 2020, 02:09:54 PM

Hate to be the bearer of bad news...
Well, bad for some, good for others.

Such is life...same as that song:

"The power of love, is a curious thing,
make a one man weep, and another man sing"

Could be perfectly translated into Trading, just change the word "love" with "market"

As of today, March 9th, 2020:
Stocks Index Dow Jones is down by $2000 (-8%)
Cryptocurrency Market cap is down by $18B (-7,8%)

What do you make of it?

Source

Indeed stock markets are bleeding around the world and crypto market is no exception. But the question is that, are they correlated? Frankly speaking, I don't see any correlation between crypto market and traditional stock market. It may just be a coincidence that both markets are facing the heat at the same time. The current drop of crypto prices may be linked to the heavy sell off from two well known scam in crypto history - Plus token and MTGox. Read below,

https://coingape.com/bitcoin-scam-sell-off-mt-gox-plustoken/

This news makes more sense!

TimtheYoutuber

full member

Activity: 1708

Merit: 125

www.positivebetting.com

I would wait a week or two to make an investment in stocks and crypto. I mean, from my point of view its beautiful because I missed out on some energy and oil stocks that dropped like 20% in a day. These billion-dollar companies that are not going away, so I am seeing it as a great investment.

You don't want to catch a falling knife though, so I would wait for a little.

Cnut237

legendary

Activity: 1904

Merit: 1277

Well, one takeaway is that bitcoin is not seen as a safe haven or a store of value.

I think we all knew that anyway, but here is some further evidence. Far from being uncorrelated or even negatively correlated to traditional assets, bitcoin is positively correlated. People don't rush to bitcoin in times of trouble. Instead people buy bitcoin when the normal markets are surging and confidence is high and people are more willing to take risks... because that is how bitcoin is perceived in the wider market, as a risky gamble, not a safe haven.

But we are still in the early days. Bitcoin, as has been explained many times, is in theory the perfect store of value, decentralised and deflationary. That's the theory. In practice, the crypto markets and young and immature, volumes are low compared to traditional markets, there is little to no regulation... the whole crypto arena is ripe for speculation and manipulation, which leads to volatility, which leads to more volatility, etc etc.

Remember we are just partway along the road; we are a long way from an end state. Crypto is the Wild West, but it will mature and bitcoin will indeed become a safe haven... because it is so much better than the alternatives.

Qcrypto

member

Activity: 339

Merit: 15

Hate to be the bearer of bad news...
Well, bad for some, good for others.

Such is life...same as that song:

"The power of love, is a curious thing,
make a one man weep, and another man sing"

Could be perfectly translated into Trading, just change the word "love" with "market"

As of today, March 9th, 2020:
Stocks Index Dow Jones is down by $2000 (-8%)
Cryptocurrency Market cap is down by $18B (-7,8%)

What do you make of it?

Source

Topic: Stock Market took a huge dive, Cryptocurrency follows (Read 545 times)