When the US stock market goes down Bitcoin goes down - page 4.

rexxarofmoknathal

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Quote from: greentech2 on June 15, 2020, 02:36:10 AM

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too. It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500. Any one knows the psychology or the mood of the trader? Thanks.

Let's get one thing straight, there is little evidence to suggest correlation between the stock market prices and the crypto market changes. What you saw and described above is coincidence as we all know how volatile the crypto market is and any news might tilt the market direction.

The stock market does not dictate the crypto market and unlike its distant relative is obviously stable. What might be happening is investors' loss of appetite for risk which might determine how these investors look at a less stable market such as crypto when the supposedly stable, stock market saw a downfall.

davidroux

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Quote from: davis196 on June 15, 2020, 08:45:52 AM

Quote from: greentech2 on June 15, 2020, 02:36:10 AM

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too. It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500. Any one knows the psychology or the mood of the trader? Thanks.

The global stock markets were down because of the expectations of a second wave of the coronavirus pandemic.The crypto markets shared the same fear.Basically the greed and optimism returned on both the crypto and stock markets during the last 2 months,caused by the slow recovery and removal of the lockdowns.
Now all that optimism about a fast economic and financial recovery might disappear.
The "mood of the trader" right now is just uncertainty (if we can call this mood). Grin

I agree with you. Investor sentiment is still very worried, and during the past few months, the stock market has continuously suffered a new collapse. I think COVID-19 has ruined the entire world economy and may take a long time to recover. I never expected this to happen because it affected my current job, and now I only have a way to trade to earn a little money to make ends meet.

davis196

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Quote from: greentech2 on June 15, 2020, 02:36:10 AM

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too. It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500. Any one knows the psychology or the mood of the trader? Thanks.

The global stock markets were down because of the expectations of a second wave of the coronavirus pandemic.The crypto markets shared the same fear.Basically the greed and optimism returned on both the crypto and stock markets during the last 2 months,caused by the slow recovery and removal of the lockdowns.
Now all that optimism about a fast economic and financial recovery might disappear.
The "mood of the trader" right now is just uncertainty (if we can call this mood). Grin

Etranger

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Quote from: Aaroenz0r on June 15, 2020, 04:24:24 AM

Quote from: lillobo on June 15, 2020, 03:54:52 AM

Bitcoin is not apart of the economic system. The only thing is when it does crash those that invested in bitcoin will lose their investment. If the stock market crashes, that usually means unemployment rises, and if you don't have a job, you won't be able to make your payments. When stock markets crash, investors usually move their money to the Bond Markets until stability returns to the Stock Market.

Agree! All of the markets are affected directly by the economy. Especially in the pandemic, the economy of the world is hardly increasing. Therefore, cryptocurrency market is not an exception, it also decreases! It's not too surprised though!

The stock market and the cryptocurrency market are both affected by the economy of the world, but the cryptocurrency market does not show such a strong dependence, as it is characterized by supply and demand, often based on the emotions and expectations of traders. Cryptocurrencies do not have a material foundation, so the "external" news will not affect the cryptocurrency market as directly as the stock exchanges.

Aaroenz0r

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Quote from: lillobo on June 15, 2020, 03:54:52 AM

Bitcoin is not apart of the economic system. The only thing is when it does crash those that invested in bitcoin will lose their investment. If the stock market crashes, that usually means unemployment rises, and if you don't have a job, you won't be able to make your payments. When stock markets crash, investors usually move their money to the Bond Markets until stability returns to the Stock Market.

Agree! All of the markets are affected directly by the economy. Especially in the pandemic, the economy of the world is hardly increasing. Therefore, cryptocurrency market is not an exception, it also decreases! It's not too surprised though!

lillobo

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Bitcoin is not apart of the economic system. The only thing is when it does crash those that invested in bitcoin will lose their investment. If the stock market crashes, that usually means unemployment rises, and if you don't have a job, you won't be able to make your payments. When stock markets crash, investors usually move their money to the Bond Markets until stability returns to the Stock Market.

dragon695

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Quote from: greentech2 on June 15, 2020, 02:36:10 AM

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too. It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500. Any one knows the psychology or the mood of the trader? Thanks.

Basically, it's just the common reaction of investors. When the world's economy is at risk of not gaining but recessing, investors seem to hold their investment rather than investing in any kind of project. It doesn't matter whether it is the stock market or the cryptocurrency market, investors still do the same thing. Personally, I think the stock market and the cryptocurrency market hardly have anything in common that can affect the other. However, they are all affected by the economy of the world!

greentech2

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Today, the US stock future goes down near 900 points then the bitcoin prices goes down too. It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500. Any one knows the psychology or the mood of the trader? Thanks.

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