Dow declining hard today -1.87%
Big question mark is, what will happen to bitcoin when the Dow finally takes the plunge!
Good question... I have been wondering the same thing.... a scenario I see playing out.... if, no sorry, when there is a stock market crash, and people are panic selling in the stock markets etc and peoples trades are hitting margin calls and some need to liquidate trades to cover other trades, or just want to protect their capital then there is capital flight from anywhere that is perceived as high risk... to somewhere safer ...some of the usual culprits being the Swissy, Yen, or say even US T bonds, and the like... plenty of others but they are quite usual... quite often Gold and silver get a share of the capital flight, but even they get quite a rocky ride and sometimes the only thing people feel comfortable with is cash, cash is king as they say... so how could Bitcoin fit in, tricky one to call as it has not ever had to endure a stock market crash... and I think that there are a fair few Bitcoiners that do not fit the usual "investor profile" whilst there are no doubt a fair few people in Bitcoin that may want to cut their speculative positions to say cover a margin call on a fx pair or on a stock, or for whatever reason but most people in Bitcoin I think at this stage would probably not fall into that category (certainly some, but not a huge percentage of people) but there could well be some larger holders that do have exposure elsewhere and have large sums in BTC that they may want to bring into a perceived safe harbour.. I imagine that during a stock crash, fear will be high, and so I would be shocked if we do not see some weak hands shaken out of the market, and also at this point in its development I would be surprised if Bitcoin received "safe harbour" status.... SO I am guessing that it all depends on how far the Dow drops... if it is mega, then I think we could see some considerable selling pressure on BTC, but I also think that whilst everyone else is panicking that there are a lot of Bitcoiners that will be ready and waiting, as they have been laying in wait for such a moment where they can buy up all of the cheap coins and so I guess Bitcoin will get hit but recover quickly, quicker than most other sections of the economy. Just my thoughts.. as for a figure I have no idea.
Also the DOW and other markets not just the DOW have been rocky(er) since mid of last week.... tick tock tick tock
Edit- oh and after the shitstorm has settled, then I imagine the stock crash creating more bullish sentiment for Bitcoin as long as it does not fall tooo far, and stay there toooo long...
