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Topic: US Stock Crash and its effects on crypto assets (Read 342 times)

full member
Activity: 490
Merit: 110
February 12, 2018, 01:13:37 PM
#23
It is not only corporate debt that is high, but also the World debt. I am afraid one day one of the debtors is gonna take the ball and go home. Then we get to play with hunger and more wars. Don't get me wrong, I am a star trek fan and I am always hopeful, but this going is not right and it spells doom and gloom. Age of cryptocurrencies/assets are coming and crappy fiat is gonna be the second tier, as we all guessed.

Stock markets are in trouble. P/E ratios are far too high, and so is corporate debt. Companies have been borrowing money to buy back their shares. This has inflated share prices, but done nothing for the profitabllity of the company, and now they have to cope with increasing interest payments at a time of falling sales and profits. Investors will have to look for alternative assets such as gold and silver. Crypto currencies are another great alternative, and investment procurement services are starting to appear in the crypto market. One such company has a minimum trade size of $500,000. Obviously this money flowing into the crypto world is going to more than offset the extra coins being mined, and they are mid to long term holdings.
legendary
Activity: 2814
Merit: 2472
https://JetCash.com
Stock markets are in trouble. P/E ratios are far too high, and so is corporate debt. Companies have been borrowing money to buy back their shares. This has inflated share prices, but done nothing for the profitabllity of the company, and now they have to cope with increasing interest payments at a time of falling sales and profits. Investors will have to look for alternative assets such as gold and silver. Crypto currencies are another great alternative, and investment procurement services are starting to appear in the crypto market. One such company has a minimum trade size of $500,000. Obviously this money flowing into the crypto world is going to more than offset the extra coins being mined, and they are mid to long term holdings.
full member
Activity: 490
Merit: 110
Well, that is exactly what I was saying. However, there were some contradictory opinions, so your opinion matches mine.
member
Activity: 294
Merit: 14
Here is the news:
   US stocks suffered their worst fall in more than six years on Monday, erasing gains for the year and punishing investors who had bet on an extended period of market calm.
This is the reference:
https://www.ft.com/content/af1f8e4a-0a23-11e8-8eb7-42f857ea9f09

How do you think this will affect cryptocurrency prices? I have a feeling that it will increase it because I hear that people are selling their stocks and buying bitcoin.

Don't you think that a crash in stock market should make crypto market rise? Investors will look for a new asset to put their money into and crypto is timely and is an uprising investment. But it seems like there are more other reasons that have caused the dip. This is my opinion only.
legendary
Activity: 1372
Merit: 1032
All I know is that I know nothing.
first of all as far as i can remember it was the exact opposite. meaning whenever other markets including Stocks market was crap and falling, bitcoin was rising and active as always. i still call that a coincidence and also call this a coincidence too.
because secondly it seems that people have forgotten that bitcoin does not belong to US and it is a global market!
legendary
Activity: 3976
Merit: 1421
Life, Love and Laughter...
^ All talking heads just trying to make you listen to them, follow them and of course tries to 'rewire' your thinking somehow and makes you accept that what they say is 'true'.

C'mon guys...  The Dow Jones was down by a thouasand points yesterday and didn't affect BTC at all.  I think all that money from stocks would go to the next 'big thing'.  Crypto.
legendary
Activity: 1806
Merit: 1521
If the news is anything to go by I see it having a positive effect on the digital currencies in the near future. This is because trust in the stock market will take a dive downwards and off course, cryptocurrencies would be the light.

Why? There is no significant negative correlation between the stock market and Bitcoin. The opposite is true. A real collapse of the US stock market will probably cause global economic contagion. Why do you think the most speculative, riskiest asset class in existence today (cryptocurrencies) would rise as everything else collapses?

I find it a bit ironic that bitcoin went down along with the SP 500 and bitcoin has gone up along with the SP 500 and also positively reacted to the SEC having a positive stance on bitcoin in the latest hearing mostly because of Chris Giancarlo from CFTC being bullish on bitcoin's potential.

Now I want to see a serious crash on the SP 500 and a ban on bitcoin, because bitcoin is supposed to go up when traditional markets go down and not in sync, in order to be a proper store of value that's how it should be.

Not really. Some assets will perform better than others in a global downturn, and that's what hedging is about. But "store of value" doesn't mean negative correlation to stocks. Check out the 2008 gold chart. It's a bloodbath.

There's a compelling theory going around that the cryptocurrency bubble is part of the larger tech stock bubble. I'm not sure I believe it, but it's fascinating how seemingly unrelated markets move in tandem sometimes. In this case, the mining hardware industry actually has significant overlap. The fact that so many Bitcoin supporters firmly believe that a major market collapse is good for cryptocurrency investment really gives me pause. It just doesn't logically make sense, unless you believe that some instantaneous global anti-government/pro-Bitcoin consciousness is just going to overtake the human population. Good luck with that.
member
Activity: 744
Merit: 29
www.MarquiseMuseum.com
It is a temporary crash and not just us all stock market is down,it is obvious crypto will show dip and second recent fud created an uproar of crypto ban but it is just obvious movement if you are in crypto from a long time.earlier china ban on crypto caused similar crash but we have seen what end of year was so this year will be excited then previous year as many countries are considering crypto as a tax generation asset for their economy and new partnership are approved.

I agree with you, it is temporary but I don't think people selling stocks are buying bitcoin, if stock market crashes then crypto market also crashes, it will affect us badly.


It's not temporary.

Here is the news:
   US stocks suffered their worst fall in more than six years on Monday, erasing gains for the year and punishing investors who had bet on an extended period of market calm.
This is the reference:
https://www.ft.com/content/af1f8e4a-0a23-11e8-8eb7-42f857ea9f09

How do you think this will affect cryptocurrency prices? I have a feeling that it will increase it because I hear that people are selling their stocks and buying bitcoin.
Unless this is the beginning of something big I do not think this is going to have any big effect on bitcoin or any other cryptocurrency, it as an important decrease in the stock index but we will have to monitor the market and see if this is a trend or if it was just a one time event, unless we are at the doors of another crisis I will not expect much of what happened recently in the US stock market.

It is the beginning of something big.
sr. member
Activity: 882
Merit: 269
Here is the news:
   US stocks suffered their worst fall in more than six years on Monday, erasing gains for the year and punishing investors who had bet on an extended period of market calm.
This is the reference:
https://www.ft.com/content/af1f8e4a-0a23-11e8-8eb7-42f857ea9f09

How do you think this will affect cryptocurrency prices? I have a feeling that it will increase it because I hear that people are selling their stocks and buying bitcoin.
I believe also that the clashed in stocks and commodities market is going to impact bitcoin and cryptocoins market positively and it will help in pushing bitcoin price to a bullish trend. If we should be truth to ourself then would agree that the attacked on cryptocurrencies market is real and one need to actually educate people around you in other to spreed information about bitcoin on the way social media is pumping with negative news about it.
full member
Activity: 490
Merit: 110
There was some news the other day saying that millennials don't care about stocks, and they are interested in crypto assets. I think that is correct and as time passes, bitcoin and others will gain value tremendously.
copper member
Activity: 1050
Merit: 294
It won't affect the crypto market, i don't think that Stock market and cryptos are related in any way.
Big investors in Stock market don't pay attention towards cryptos and the whales in the crypto world don't want to get into stock market.
What i have inferred from the market is that there is a huge mentality gap between both market users
STT
legendary
Activity: 4088
Merit: 1452
How do you think this will affect cryptocurrency prices? I have a feeling that it will increase it because I hear that people are selling their stocks and buying bitcoin.

General liquidity is measured against the strength of the dollar, which is not especially great right now.  We're seen a 10% decline in the last year or so since a high around the ending of the last administration.  Google Dxy for a Dollar index measure over the long term, shorter term gains and pullbacks are just part of the market

The general policy of the Federal reserve is still towards easy money, or lower rates then inflation which means prices generally appreciate.    However the gains of the stockmarket, commodities and even crypto have risen faster then that gap so are pulling back.    That pullback is not exactly bearish by itself, the ongoing prospects are more important.

  I want to see more ease of use to Bitcoin via measures such as lightning network if required but fees cannot be this high and growth continue vs cheaper alternatives.
legendary
Activity: 1372
Merit: 1252
I find it a bit ironic that bitcoin went down along with the SP 500 and bitcoin has gone up along with the SP 500 and also positively reacted to the SEC having a positive stance on bitcoin in the latest hearing mostly because of Chris Giancarlo from CFTC being bullish on bitcoin's potential.

Now I want to see a serious crash on the SP 500 and a ban on bitcoin, because bitcoin is supposed to go up when traditional markets go down and not in sync, in order to be a proper store of value that's how it should be.
full member
Activity: 448
Merit: 100
It is a temporary crash and not just us all stock market is down,it is obvious crypto will show dip and second recent fud created an uproar of crypto ban but it is just obvious movement if you are in crypto from a long time.earlier china ban on crypto caused similar crash but we have seen what end of year was so this year will be excited then previous year as many countries are considering crypto as a tax generation asset for their economy and new partnership are approved.

I agree with you, it is temporary but I don't think people selling stocks are buying bitcoin, if stock market crashes then crypto market also crashes, it will affect us badly.
full member
Activity: 672
Merit: 127
Well, my source is Twitter, but the price increase indicates a strong trend, approving my sources. I believe it will keep increasing in February and we saw the lowest dip.
I have a feeling that it will increase it because I hear that people are selling their stocks and buying bitcoin.

At current levels converting stock value into Bitcoin value is quite a smart move, but I don't know how many people will actually end up doing so. In that regard, I am very curious to find out what your source is for people saying that they are selling stocks for Bitcoin. Institutions are the first entities to exit the market causing the price to tank hard (in stock market terms), where after that the the less smart money follows. I am more interested in finding out what institutions will do with the fresh liquid capital they have control over right now. Gold this year remained fairly strong value wise, where it even managed to increase very conservatively, and still maintains a plus for this year.
In our country, stock are also down. I think the CMC is also affected with this trend, unless they are shifting to crypto currency from stocks. Good for them because the future of the crypto will be the next stock exchange in a global scene.
full member
Activity: 490
Merit: 110
Well, my source is Twitter, but the price increase indicates a strong trend, approving my sources. I believe it will keep increasing in February and we saw the lowest dip.
I have a feeling that it will increase it because I hear that people are selling their stocks and buying bitcoin.

At current levels converting stock value into Bitcoin value is quite a smart move, but I don't know how many people will actually end up doing so. In that regard, I am very curious to find out what your source is for people saying that they are selling stocks for Bitcoin. Institutions are the first entities to exit the market causing the price to tank hard (in stock market terms), where after that the the less smart money follows. I am more interested in finding out what institutions will do with the fresh liquid capital they have control over right now. Gold this year remained fairly strong value wise, where it even managed to increase very conservatively, and still maintains a plus for this year.
sr. member
Activity: 840
Merit: 254
Here is the news:
   US stocks suffered their worst fall in more than six years on Monday, erasing gains for the year and punishing investors who had bet on an extended period of market calm.
This is the reference:
https://www.ft.com/content/af1f8e4a-0a23-11e8-8eb7-42f857ea9f09

How do you think this will affect cryptocurrency prices? I have a feeling that it will increase it because I hear that people are selling their stocks and buying bitcoin.
Unless this is the beginning of something big I do not think this is going to have any big effect on bitcoin or any other cryptocurrency, it as an important decrease in the stock index but we will have to monitor the market and see if this is a trend or if it was just a one time event, unless we are at the doors of another crisis I will not expect much of what happened recently in the US stock market.
member
Activity: 265
Merit: 10
The World’s First Blockchain Core
in the financial crisis of 2008 bitcoin was born when the markets were crashing and now this crash is a new crisis which can give btc the opportunity and gas for rise cuz people may turn to btc instead of stocks.
full member
Activity: 1736
Merit: 121
If the news is anything to go by I see it having a positive effect on the digital currencies in the near future. This is because trust in the stock market will take a dive downwards and off course, cryptocurrencies would be the light. Government is actually going to look into how to regulate and levy tax too. Hodl your coins , good times ahead.
full member
Activity: 826
Merit: 111
Here is the news:
   US stocks suffered their worst fall in more than six years on Monday, erasing gains for the year and punishing investors who had bet on an extended period of market calm.
This is the reference:
https://www.ft.com/content/af1f8e4a-0a23-11e8-8eb7-42f857ea9f09

How do you think this will affect cryptocurrency prices? I have a feeling that it will increase it because I hear that people are selling their stocks and buying bitcoin.

We had another strike through. Crypto currencies were bought with Tether instead of buying in dollars. This would have been one of the reasons for this crash. Such moments really do affect total economy growth of dollars plus crypto currencies.
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