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Topic: What will be the effect of QE 3 ending for bitcoin and the stock market? (Read 1147 times)

legendary
Activity: 1232
Merit: 1000
When people lost faith in traditional investment avenues, bitcoin could provide a feasible alternative.
sr. member
Activity: 342
Merit: 250
Bitcoin only really took off after the worst of the last recession was over, so it's difficult to say. I suppose it depends how bad things get this time around.
sr. member
Activity: 433
Merit: 250
QE 3 is ending in October. What will be the effect on both bitcoin and the stockmarket?

Based on google searches, historically stock market crashed around 15 % during the end of the first QE 1 ending and about 20% when QE 2 ended. So, potentially we could see another crash of 15-25% when QE 3 ends.

Would that mean bitcoin would potentially go down as well since people are pulling money out of the stock market and would also pull out money from bitcoin? Or is it the other way around and people would put more money into bitcoin/gold as they pull their money out of the stock market?

Thanks for reading and any comments.

Respectfully,

mskryxz

The fed isnt ending QE. They are simply shifting the demand-side semantics by using Europe and buying bonds through proxy banks like the Euroclear in Belgium in another slight of hand trick to keep this charade afloat.

They can't stop QE, it's too late for that and the central bankers have painted themselves into a mathematical corner.

I predict a geo-physical and/or geo-financial black swan event that few saw coming will open the commodities floodgates.

IMO, commodities will skyrocket when the flood out of equities looks for safe haven and that includes bitcoin.


Thanks for your input and I apologize for my ignorance on when I said QE ending.

Interesting analysis!
KJO
full member
Activity: 173
Merit: 100
QE 3 is ending in October. What will be the effect on both bitcoin and the stockmarket?

Based on google searches, historically stock market crashed around 15 % during the end of the first QE 1 ending and about 20% when QE 2 ended. So, potentially we could see another crash of 15-25% when QE 3 ends.

Would that mean bitcoin would potentially go down as well since people are pulling money out of the stock market and would also pull out money from bitcoin? Or is it the other way around and people would put more money into bitcoin/gold as they pull their money out of the stock market?

Thanks for reading and any comments.

Respectfully,

mskryxz

The fed isnt ending QE. They are simply shifting the demand-side semantics by using Europe and buying bonds through proxy banks like the Euroclear in Belgium in another slight of hand trick to keep this charade afloat.

They can't stop QE, it's too late for that and the central bankers have painted themselves into a mathematical corner.

I predict a geo-physical and/or geo-financial black swan event that few saw coming will open the commodities floodgates.

IMO, commodities will skyrocket when the flood out of equities looks for safe haven and that includes bitcoin.
sr. member
Activity: 433
Merit: 250
QE 3 is ending in October. What will be the effect on both bitcoin and the stockmarket?

Based on google searches, historically stock market crashed around 15 % during the end of the first QE 1 ending and about 20% when QE 2 ended. So, potentially we could see another crash of 15-25% when QE 3 ends.

Would that mean bitcoin would potentially go down as well since people are pulling money out of the stock market and would also pull out money from bitcoin? Or is it the other way around and people would put more money into bitcoin/gold as they pull their money out of the stock market?

Thanks for reading and any comments.

Respectfully,

mskryxz
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