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Topic: what would be relationship between bitcoin and stockmarket? (Read 353 times)

copper member
Activity: 110
Merit: 2
Total Exchange (TEX) and Luxury Ledger (LXRY)
We believe there will be an immediate direct relationship with Stock Market and BTC price. However, longer-term outlook is that as BTC matures as an asset class, there will be an inverse relationship to the traditional financial system. That is when things get really interesting for us HODLers Wink
legendary
Activity: 1652
Merit: 1483
There is no relationship between stock trading and bitcoin trading, both are independent of each other. Stock exchanges worldwide are linked with oil prices. If oil goes up stock exchanges also go up. The crypto world is mostly dominated by millennials and whales.

no markets are truly independent because they are linked to macroeconomies. the national and global economic outlook affects everything. if a global recession occurs, this means companies turning losses and laying people off. people losing their jobs live off their savings and sell off their investments. this is what drives prices down in virtually all investment assets during recessions---increased supply and reduced demand. that applies to bitcoins just the same as stocks.

if the the crypto world is dominated by millennials, that may be a bad thing. millennials (and generation z) are in a much more financially precarious position than older generations, so the effects of recession i mentioned could be even more acute.
sr. member
Activity: 1610
Merit: 301
*STOP NOWHERE*
There is no relationship between stock trading and bitcoin trading, both are independent of each other. Stock exchanges worldwide are linked with oil prices. If oil goes up stock exchanges also go up. The crypto world is mostly dominated by millennials and whales.
sr. member
Activity: 962
Merit: 269
CryptoDirectories.com
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss
as of now, there is no real connection about bitcoin and stockmarket
in my opinion what only similar to the stock market is bitcoin as main currency and altcoin as the stocks




legendary
Activity: 2338
Merit: 10802
There are lies, damned lies and statistics. MTwain
Coinmetrics has a chart that allows us to see the correlation between BTC and S&P historically, taking the graph right up to yesterday’s readings:



The chart displays Spearmans correlation. What we seem to be observing here is that the correlation values are in the range of -0.2 and +0.25, which points to a very weak to weak correlation.
Quote
<…>
Correlation is an effect size and so we can verbally describe the strength of the correlation using the following guide for the absolute value of:
•.00-.19 “very weak”
•.20-.39 “weak”
•.40-.59 “moderate”
•.60-.79 “strong”
•.80-1.0 “very strong”
<…>
https://coinmetrics.io/correlations/#assets=btc-s&p
http://www.statstutor.ac.uk/resources/uploaded/spearmans.pdf
sr. member
Activity: 1150
Merit: 260
☆Gaget-Pack☆
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss
I really don't know the answer to that one my friend, and I'm not sure if the two will ever be directly connected anytime soon, but what I do know is that cryptocurrency market operates in a remarkably similar fashion to the stock market but in a more decentralized kind of way. The Forex market may be the best and closest comparison you could make to the cryptocurrency market. This is why many people find the transition from The Forex markets into the crypto markets an relatively easy switch.

Before cryptocurrency I had never traded Forex or Cryptocurrency before, but I found this free guide and school course on FOREX essential for learning how to trade both markets correctly.

It's a FREE guide and course system on trading, no bullshit!
https://www.babypips.com/learn
sr. member
Activity: 1106
Merit: 310
currently bitcoin is not included in the current setup of the market, since its a digital money
only those like stocks for a big company shares are being traded with the stock market
but digital currency has its own exchanges where in you can buy and sell like stocks
this are the following exchanges:
Binance
poloniex
CoinsPh pro
etoro
and many others, maybe someday will going to see that the current market or stock exchanges they usually say will include digital currency which
is currently i think is under review im not sure but i think they are thinking about it
sr. member
Activity: 700
Merit: 257
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss
in my opinion there is no connection between the stock market and bitcoin, when crypto prices soared last year did not seem to affect the stock market much, it's just that if most stock players switch to bitcoin, of course, stock trading will further decline.

They are one of the investment that we can do for our daily life, but in terms of literally connection or relation, yeah they are not really connected to each other, so for me there is no reason for them to be compared at all, as they differ in nature and one trader cannot apply his strategy from crypto to stock market or vice versa.
newbie
Activity: 546
Merit: 0
I don't think so because:
With the desire to prevent the 2008 world financial crisis from happening again, virtual currencies were created with the expectation of an independent monetary unit, not controlled by banks or monetary institutions and not affected by inflation.
sr. member
Activity: 1274
Merit: 278
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

I don't think that bitcoin has relationship in stockmarket, bitcoin has its own market and stockmarket don't list crypto currency and that side, crypto market has no big effect if stockmarket goes up. in other words, crypto and stock market will still depend on its own investors.

Basically it could be from the transfer of investors if they find the other investment platform is quite better than another. Let's take for example if they are investing in cryptocurrency and they lose allot of investment for some reasons, they might go and try stock market which is in fact, consists of investment that aren't too volatile for them to avoid much risk. With this, it could be indirect but it is evident that there is a relation with stock and crypto with regard to its investors.
sr. member
Activity: 812
Merit: 257
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss
in my opinion there is no connection between the stock market and bitcoin, when crypto prices soared last year did not seem to affect the stock market much, it's just that if most stock players switch to bitcoin, of course, stock trading will further decline.
full member
Activity: 1638
Merit: 122
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

I don't think that bitcoin has relationship in stockmarket, bitcoin has its own market and stockmarket don't list crypto currency and that side, crypto market has no big effect if stockmarket goes up. in other words, crypto and stock market will still depend on its own investors.

roight mate . they are different in any means however i if im not mistaken i have seen a trading platform one time that enables traders to trade cryptos and stocks at the same time.

 that was a cool platform but i forgot its name already.  if that is the case , it simply means that both of them have a relationship to each other .
full member
Activity: 1442
Merit: 153
★Bitvest.io★ Play Plinko or Invest!
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

There is no correlation at all! Bitcoin is nowhere close to traditional asset classes and traditional investors don't really like bitcoin as an investment. The main participants of the Bitcoin market is tech-savy millennial who likes to take risk and make big out of it, which is definitely different than the investment ideologies of the traditional class of investors. If you try to find correlation between stock market and Gold, then it's valid because Gold has been serving as a hedging instrument for the traditional class of investors. But bitcoin has not yet matured to that level where it can provide a safe hedging against stock market's movement. We still have a long way to go! 

There's nothing wrong about investing in bitcoin. We trust bitcoin that it will sure rise again its price because it happened last 2 years. In 2017, it reached a $10K USD and above, if that happened, it will surely happen again. We are the ones who take a risk, but in the end, we're also the one who will benefit to that investment. No matter how long or how far but we will still be patient and positive.
sr. member
Activity: 2380
Merit: 366
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

Not necessarily. I think there is no single pattern of relationship between stock market and crypto market. If there is, probably it is that the crypto market will go up when the stock market will go down. I am thinking that some investors would shift to crypto whenever the stock market is falling down. But that does not also apply totally to their possible relationship. It could also happen that investment money is flowing really huge that some are getting into stocks while some are also in crypto.
sr. member
Activity: 784
Merit: 251
https://raiser.network
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

I don't think that bitcoin has relationship in stockmarket, bitcoin has its own market and stockmarket don't list crypto currency and that side, crypto market has no big effect if stockmarket goes up. in other words, crypto and stock market will still depend on its own investors.
sr. member
Activity: 1020
Merit: 253
JangaCams.com
the answer is definitely not because the crypto market and the stock market have nothing to do, therefore when the pump stock market will not have an impact on the crypto market. and also the difference is quite a lot and they are not related, although both are investment models but they are not related to each other
legendary
Activity: 2464
Merit: 1039
Bitcoin Trader
not really, even they are completely different, your crypto can decide when you should get profits and losses so you can choose the option to close a position, if the stock market I have never tried it looks like they are based on a contract, sorry if I'm wrong, but basically the stock market and the crypto market is different, sometimes when the stock market goes down, the crypto market will go up, because they switch there
legendary
Activity: 3808
Merit: 1723
There are too many people that think that a recession is going to happen and too many people think that during a recession everybody will put all their money into Bitcoin, this most likely won't happen.

I've been around since the 2008 recession and when it started to reverse in 2009, people were expecting a double dip recession in 2010 and they shorted the stock markets and lost big. Then people were expecting a recession in 2012,2013,2015,... and so on. Pretty much people have been expecting a recession for over 10 years now.

Even if a recession does happen in 2020, it doesn't mean people will buy Bitcoin. Usually they will buy blue chip stocks or invest in real estate or gold. BTC is just too volatile during a risk-off period. But since bitcoin was never thru a recession its hard to tell what will really happen.
sr. member
Activity: 1020
Merit: 253
JangaCams.com
each investment has a different place, so it will be different too, the stock is usually invested from a company that can be called traditional, while Bitcoin is more in the field of internet where the majority of users are new people. so as far as I know bitcoin and stocks are very different in terms of price movements and the risks are different
hero member
Activity: 3150
Merit: 636
DGbet.fun - Crypto Sportsbook
I used to believe it has before but I'm not good with economics and analysis so I can't justify it. Because I've just based the market status last year of how it looked like.

2018 was a bear market for cryptocurrencies so do it was with stocks market. But I've understood it that there's really no correlation at all because there's no proof that they have connection.
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