The relation between Bitcoin and stock market prices - has it changed?

darklus123

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Quote from: nur rochid on December 11, 2018, 11:24:01 AM

the two comparisons differ greatly. many investors are more comfortable investing in stocks, because with clear legalization. whereas in cryptocurrency only a few of the stock investors switched to him

So you were saying that you have the same observations with @legendster?

There are really more investors from the stock market as it was more established if we do talk about the numbers there were really few scenarios that there were only few differences especially when we look at the volume of trading on that day

Pab

legendary

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There is comparison of Nasdaq chart and Bitcoin chart
Both are like mirror reflaction
Nasdaq up Bitcoin up Nasdaq down BTC down
It has simple explanation appetite on risk and money in market
money is like a fuel if prices are to high to buy investors are shorting

Idrisu

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I don't think the relationship has changed and bitcoin and stocks do react to both technical and fundamentals analysis. I believe that bitcoin is still at the early stages and one really need to understand how to trade stocks and apply the knowledge to bitcoin.

nur rochid

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Quote from: darklus123 on December 11, 2018, 10:30:08 AM

Quote from: legendster on May 06, 2018, 06:21:01 PM

I think there's a reverse relation. The stock market dips and the Crypto rises.
I'll bring in some charts and evidences in this thread later on to prove this hypothesis.

I am not sure if you were correct but since you have an observation i will be waiting for your graph. More likely I wss thinking that it might just be a coincidence. Before I also saw a situation in which both markets are at its highest peaks in the same time frame

the two comparisons differ greatly. many investors are more comfortable investing in stocks, because with clear legalization. whereas in cryptocurrency only a few of the stock investors switched to him

darklus123

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Quote from: legendster on May 06, 2018, 06:21:01 PM

I think there's a reverse relation. The stock market dips and the Crypto rises.
I'll bring in some charts and evidences in this thread later on to prove this hypothesis.

I am not sure if you were correct but since you have an observation i will be waiting for your graph. More likely I wss thinking that it might just be a coincidence. Before I also saw a situation in which both markets are at its highest peaks in the same time frame

ausbit

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Quote from: rosemary4u on December 09, 2018, 06:30:54 PM

Currently I don't think there exist any relationship between bitcoin and the stock market. All the changes that we see on the crypto market is many due to the activities of powerful crypto enthusiasts. Usually changes on the crypto market are mainly due to manipulations.

It has changed for the worse for us. Back in the day when there was a crisis somewhere in the world people moved their money to coins so they would be undamaged from the crisis. When greece had a economical crisis people bought bitcoin as much as possible so when the government wanted to put a limit on stuff they wouldn't be affected.

There was people from cyprus who had lost millions of dollars because government was badly managed and they needed money to pay the debt and did some insane stuff so all of them moved their assets to crypto. Nowadays when there is a market crash somewhere people cash out their crypto first, stock markets became once again a popular option for investors instead of moving their money to crypto. It became one of the first things to cash out.

zhanyiguai261315

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The stock market is supported by the real economy, while the cryptocurrency market is not supported by the real economy!
This is the main reason why people are keen to invest in stocks instead of cryptocurrencies!

iamverybusyperson

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Quote from: efxtrader on December 10, 2018, 03:12:31 AM

Hard to see correlation between stocks market and cryptocurrency market because i think its different market. But i think if stocks market collapse, maybe stocks investor will switch their investment to cryptomarket for their own security

True. But crypto market is unreliable. It grow fast and fall even faster.

efxtrader

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Hard to see correlation between stocks market and cryptocurrency market because i think its different market. But i think if stocks market collapse, maybe stocks investor will switch their investment to cryptomarket for their own security

Transformbitz

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The great recession or market reset are on its way so things are getting worse and it's not a good sign to trade nor to invest a cheap coins. They said Gold/silver and cryptocurrency is a safe heaven asset coz dollars will slowly to go down.

Semosuchi Tesongrato

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Theoretically there should not be any correlation; however it is easy to verify how some of the recent "collapses" occurred in conjunction with large drops on the stock exchange. Not only that, it seems to me that the media have focused on the collapse of the bitcoin to hide the collapse of the stock exchange ... MHO

rosemary4u

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Currently I don't think there exist any relationship between bitcoin and the stock market. All the changes that we see on the crypto market is many due to the activities of powerful crypto enthusiasts. Usually changes on the crypto market are mainly due to manipulations.

pobeditelvezde

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Are you sure that there is a correlation between the stock market and the crypto market? I am not sure that there is such a correlation I have not noticed this correlation. Let us have a look at the stock market as we can see the stock market is near its historical peak (I mean DOW and S&P500 indices) however the crypto market is somewhere nearby its lows. So, what kind if correlation do you mean?
As far as I know plenty of traders are waiting a strong deep correction on the stock market but I do not think that this future correction will hit substantially on the crypto market. I can suppose that the falling stock market will affect the crypto market but just a little.

taiwww

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Im not sure what others are thinking about it but I see no connection between the two different worlds at all. There is no way stock is affecting the crypto currency because there is no internal connection between them and neither there are any transfers from crypto to stocks at all. However, there is surely effect over the stocks because of the crypto currency as most of the stocks are being sold because want to have investment into the crypto currency and thus it might have effect on it. But the situation other way around to this one doesnt look rightful to me.

jseverson

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Quote from: IIOII on August 17, 2018, 05:55:45 PM

I haven't made the effort to collect stock exchange and Bitcoin price data yet. It's just my personal (subjective) observation. I might do it when I have more time at my disposal.

I don't know if you're already looked through the internet or if you really want to do this by yourself, but data about this already exist:

https://www.investopedia.com/news/are-bitcoin-price-and-equity-markets-returns-correlated/

There are a lot more, and the consensus seems to be that there is some correlation. As for your original question, I would think that the entry of institutional investors would only serve to increase correlation. It really hasn't happened en masse yet, so you could probably still use Bitcoin as a hedge against the stock market right now, but probably not for much longer. It's pretty sad if you think about it.

IIOII

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Quote from: Hell-raiser on May 07, 2018, 12:46:40 PM

Quote from: IIOII on May 06, 2018, 05:14:57 PM

Am I the only on who thinks that Bitcoin price movements have changed in the more recent months and now more closely resemble that of the stock market (positive correlation)?
Based on what I remember, the early Bitcoin was priced more like a hedge against corrections in the stock market.

Do you have any solid numbers like the correlation coefficient, which measures the strength of this relationship, and how it changed for the last few months? Basically, what is your methodology or is it just how you feel?

I haven't made the effort to collect stock exchange and Bitcoin price data yet. It's just my personal (subjective) observation. I might do it when I have more time at my disposal.

Kakmakr

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I think the speculative element has become stronger withing the Bitcoin scene, since last years ATH. We are seeing more focus on the "price" than the technology and a lot of people only entered the scene,because of the high probability of "quick" profits. The ICOs has also added to that speculative frenzy with investors. Roll Eyes

The latest price decline and some timed dumping, chased away some of the weak hands. Grin

alegors

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Quote from: IIOII on May 06, 2018, 05:14:57 PM

Am I the only on who thinks that Bitcoin price movements have changed in the more recent months and now more closely resemble that of the stock market (positive correlation)?

Я дyмaю, чтo движeниe цeны биткoинa никaк нe кoppeлиpyeт c фoндoвым pынкoм. Boт кoгдa кpиптa зaмeнит фиaтныe дeньги - тoгдa дa, бyдeт.

Rollkal

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In my opinion, BTC's influence on the stock market can be believed, but they are not related to each other. When the Crypto market develops, they will attract many investors to quit the stock market and switch to holding the altcoin. So the stock market today will be more bleak than in the past.

osh5

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If we see for last couple of months, Bitcoin values went up along with the stock market and went down as soon as the stock market crashed.
Though cryptocurrencies have their own economy based on their own activity on blockchain and equities have their own economy based on earnings per share multiples.

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