Topic: What happens to Crypto when normal stockmarket collapses?? - page 4. (Read 1195 times)
The next crash that comes will tell if Bitcoin is a real safe haven asset or not. Given the amount of publicity that it has received and most people's willingness to use it now - I think it may one day achieve that status.
I'm not sure that could happen in an easy way. In the event of a crash, things will happen real fast, as everyone tries to save or hedge their funds. I think they normally use stable assets like gold, and maybe real estate, although I'm not sure real estate can be easily trusted. Bitcoin has a lot of potencial, and it's getting popular, and it keeps being compared to gold, but for institutional money to flow into crypto just like that, the liquidity and the transactions per second would have to be much bigger that what we currently have. Maybe if we already have bitcoin on major stock market exchanges that could happen.
Just so you all know it is not only HSBC sounding the alarm, everyone in the market is. A crash is imminent.
If you have been in the cryptocurrency space long enough, you will probably remember what happened to the price of bitcoin during the EU financial crisis when things were looking really bad for the EU.
That's how you hedge for the future.
If you have been in the cryptocurrency space long enough, you will probably remember what happened to the price of bitcoin during the EU financial crisis when things were looking really bad for the EU.
That's how you hedge for the future.
There are many comparisons drawn between bitcoin and gold. Some go so far as to label bitcoin as "gold 2.0".
It is possible that in the event of a stock market collapse bitcoin will behave similar to gold during past market collapses.
It is also possible that if the stock market crashes investors will look for investments other than stocks which could create a massive influx of bitcoin/crypto investment. This in turn could drive the price of btc, and crypto market caps, higher.
I haven't been following the stock market enough to think of a big crash other than 2008. There haven't been any big crashes that I know of since bitcoin's inception. If there is a crash: we will found out how btc/crypto reacts to stock market collapses.
It is possible that in the event of a stock market collapse bitcoin will behave similar to gold during past market collapses.
It is also possible that if the stock market crashes investors will look for investments other than stocks which could create a massive influx of bitcoin/crypto investment. This in turn could drive the price of btc, and crypto market caps, higher.
I haven't been following the stock market enough to think of a big crash other than 2008. There haven't been any big crashes that I know of since bitcoin's inception. If there is a crash: we will found out how btc/crypto reacts to stock market collapses.
I'd say crypto would be able to benefit from it a little. People looking to invest their money somewhere else will only really have a few options, and this is one of the best. Trading cryptocurrencies are also quite similar to trading stocks, so why not?
The general idea was that the money "would" move from stocks to crypto. How would they do that though? With the market crashed, all those stocks would be worth little. Would anyone bother buying those so that the money would then be moved to crypto?
If the stock market collapse, I feel a little of the fund would move into Crypto trading, especially the established cryptos
ICOs are similar stocks in that you're funding the company through investment. I want to say they are more like substitutes in a way -- if you think something is going down in the stock market, go for the ICOs if it looks stable. I don't think one directly affects the other, but they are definitely comparable markets.
Actually I think probably the opposite would happen, if the stock market crashes it will send fear throughout all markets and I suspect we would see a smaller in scale crash in crypto as well.
HSBC sent an alert that there may be an imminent crash of stockmarket similar to 1987 Black Monday
https://www.rt.com/business/362618-stock-market-severe-fall/
If this happens again, what's everyones opinion on the effects on crypto? Would a bunch of burnt investors jump on board?
https://www.rt.com/business/362618-stock-market-severe-fall/
If this happens again, what's everyones opinion on the effects on crypto? Would a bunch of burnt investors jump on board?
There is no co-relation between these two markets, so technically nothing should happen to bitcoin or crypto market as a whole. Instead we may see a rise in bitcoin market because a lot of worried investors will try to find a separate place to invest or park their liquid money during the time of turbulence. It is just the similar mentality behind the gold price. Whenever there was a market crash, the gold price goes up steadily. Because a lot of investors pull out their funds from the stock market and start buying gold to save their capital investment. So crypto world can also serve as a parking place for withdrawn money in that case. But that's just an assumption. We may or may not see this happening.
HSBC sent an alert that there may be an imminent crash of stockmarket similar to 1987 Black Monday
https://www.rt.com/business/362618-stock-market-severe-fall/
If this happens again, what's everyones opinion on the effects on crypto? Would a bunch of burnt investors jump on board?
There wont really be any effect at all knowing that stock market and cryptocurrency world isnt really connected to each other on which i dont even believe that those people who being affected on such stock crash would mind to jump in on a more volatile world of crypto.They would really surely have the doubts and fear to invest and might lose up money even more. https://www.rt.com/business/362618-stock-market-severe-fall/
If this happens again, what's everyones opinion on the effects on crypto? Would a bunch of burnt investors jump on board?
I think there would be some chance of a small jump up the whole situation. Regards.
Well, they can jump... if they still have some left. I don't see crypto suddenly booming from a stock market collapse though. Especially if said investors haven't been into cryptos before. It would also require they take their remaining money out of the stock market and transfer that to cryptos, which might not always be easy.
These two markets aren't correlated. So in theory, nothing. Nothing happens.
Ideally we'd see wealth move from the weak market (the stock market, people predict weakness is coming) to the strong market (people in bitcoin don't seek the bitcoin market weakening). But this assumes there is already a mechanism for money in the stock market to reach the bitcoin/crypto market. That mechanism doesn't really exist. Most people in the investment world (particularly the every day folks) aren't involved in Bitcoin. They're likely not to quickly jump to Bitcoin because they still don't see it as a viable market to be in.
That could change though if we see a prolonged bear market on Wall Street.
Ideally we'd see wealth move from the weak market (the stock market, people predict weakness is coming) to the strong market (people in bitcoin don't seek the bitcoin market weakening). But this assumes there is already a mechanism for money in the stock market to reach the bitcoin/crypto market. That mechanism doesn't really exist. Most people in the investment world (particularly the every day folks) aren't involved in Bitcoin. They're likely not to quickly jump to Bitcoin because they still don't see it as a viable market to be in.
That could change though if we see a prolonged bear market on Wall Street.
HSBC sent an alert that there may be an imminent crash of stockmarket similar to 1987 Black Monday
https://www.rt.com/business/362618-stock-market-severe-fall/
If this happens again, what's everyones opinion on the effects on crypto? Would a bunch of burnt investors jump on board?
https://www.rt.com/business/362618-stock-market-severe-fall/
If this happens again, what's everyones opinion on the effects on crypto? Would a bunch of burnt investors jump on board?
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