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Topic: what would be relationship between bitcoin and stockmarket? - page 2. (Read 353 times)

legendary
Activity: 3472
Merit: 10611
absolutely nothing.

bitcoin has always been a stand alone thing that doesn't take any effects from any other market (not just stocks market but anything you can think of). it is a 24/7 global market and it has been going up and down independently for the past 10 years. you can see the history, there are times when people find some exception where an up or a down coincides with another market and they get excited but then when you look at the bigger picture you can see that there is no relationship at all.

with that said, we can't deny the fact that things that could affect another market "drastically" could also affect bitcoin. what i explained above is the normal circumstances that for instance if stocks market crashed nothing would happen to bitcoin. but in special cases for example a recession where stock market not only crashes but it does it hard, then bitcoin could be affected. there are different speculations about what could happen, my opinion is that bitcoin would thrive in a recession and would go up.
sr. member
Activity: 625
Merit: 258
There could be a relation between both parties in terms of equal currencies.

Assuming right now there isn't any so that's impossible to have.
But in the future let's say world has a unique currency (bitcoin) for everything.

With only these aspects you will be able to relationship both as they will become 1 and only environment.

Currently that isnt possible because stockmarkets only accept fiat. Unless you trade btc -> fiat and buy stocks ofc.
sr. member
Activity: 2366
Merit: 305
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There's no correlation between them because crypto has a lot of whales while the stock market is dont have. Also crypto is highly volatile and most traders are this what they like. The stock market was backed by a company and they are all centralized one while cryptos are decentralized and no one control with this but it can be manipulated. So, I dont think there's a relationship among them.
sr. member
Activity: 2338
Merit: 273
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bitcoin is not connected with the government's active economic policy sentiment, only affected by the government's attitude towards crypto. bitcoin also does not correlate with gold and issues related to interest rates. bitcoin runs in different corridors and moves independently with more speculators who are only involved with bitcoin and altcoin developments.
hero member
Activity: 2870
Merit: 594
This is just probably a theory so we can't really proved that there is a connection, if indeed there is one. Bitcoin can go up anytime but it doesn't mean that stock market will spike as well and vice versa.

So it's inconclusive, we even don't know if we have the same sets of investors. We all know that majority of stock traders doesn't like bitcoin or crypto in general because it is unpredictable. With that said, I don't think there's any correlation whatsoever.
sr. member
Activity: 1008
Merit: 355
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

This has been answered before. The answer is no. It tends to be the opposite, but not quite. Bitcoin is similar to gold, some investors seek refuge there when the economy goes bad. Bitcoin is not affected by the state of the economy, just like gold.

There is no established connection or correlation between cryptocurrency market and stocks. However, as noted, there is that tendency that if stocks are doing well cryptocurrency may not be, and I am assuming that it can be because the focus will be less on cryptocurrency as an alternative investment vehicle once investors are doing well in stocks or similar assets. What is an established fact is that when there will be disruptions or turmoils economically or politically then cryptocurrency can be doing good. It means that bad news can be good news to cryptocurrency especially Bitcoin. However, this can just be a temporary thing as years or decades from now when the market has already expanded so well there will be less influence with the bad developments all around the world.
legendary
Activity: 1652
Merit: 1483
This has been answered before. The answer is no. It tends to be the opposite, but not quite.

there is no direct correlation. it's not like the strong ~80% correlation between gold and the australian dollar, which exists because gold mining/minting/exporting is an integral part of australia's economy.

i do however believe there is a long term, indirect correlation between the two, based on macro investment cycles and global risk appetite. the cryptocurrency market is indirectly related to the technology equity market in the sense that they draw from the same pool of high risk/high reward speculative investors.

this may be why tech stocks and bitcoin have both been in a raging bull market for the last decade. i believe they will both fall together in the next recession too for similar reasons.
legendary
Activity: 3668
Merit: 6382
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There could have been a few cases maybe there was a relation between the two. But a few drops don't make the ocean.
People have claimed they've found the rule. But at the end they were contradicting each other - some were claiming that bitcoin and stock go together, others were claiming that they go in opposite direction. So no, there's no relationship between stock market and bitcoin price.
legendary
Activity: 2310
Merit: 1035
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I don't see any meaningful relationship between those two. The only thing I can think of is the same with what will happen if a crash on the stock market will come. Implicitly that will impose most probably an economic crisis as well and we all know that when that happens people are more resilient with investing their money. Moreover they will try to sell all their remaining assets (including Bitcoin probably) to get as much cash as possible. That's how fear operates on people unfortunately.
sr. member
Activity: 1274
Merit: 265
I don't think there are any relation b/w bitcoin and any other trading platform. Stock market is very much mature and fundamentally driven compared to bitcoin market which is most volatile and speculative driven.
legendary
Activity: 2030
Merit: 1569
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If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

This has been answered before. The answer is no. It tends to be the opposite, but not quite. Bitcoin is similar to gold, some investors seek refuge there when the economy goes bad. Bitcoin is not affected by the state of the economy, just like gold.
legendary
Activity: 3080
Merit: 1500
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! 
newbie
Activity: 75
Merit: 0
If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss
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