Bitcoin Forum

In the past few days many stock markets have fallen worldwide. There are many voices that expecting a strong correction and a coming bear market. I wonder if falling stock markets are good or bad for Bitcoin. Normally, money that is no longer invested in stocks is to flow into other assets. Bitcoin with its rapid rise would certainly be attractive. What do you think?

Many banks are signalling their customers about a correction in the coming Autumn. As we've seen in the days before & after the Brexit vote, people didn't accumulate big amounts of coins but this one's kind of different. Let's suppose that September 4 closes with a -40% in most stock exchanges, most probably a minority of investors will try to secure their assets buying Bitcoins, Gold and even silver, but the majority will rush to liquidate their stocks for USD. :)

Fiat still rules the world

The vast majority of investors will just move their holdings into fiat.  They'd prefer to have something which typically only drops by 2-3%, instead of keeping the risk of something which is likely to have dropped loads when they want to cash out.

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You can only expect Bitcoin investors from a bear market if they're diversifying loads into many different assets including gold as well.  Generally though, you're right that stock market problems are bullish for Bitcoin IMO.

I'd say bitcoin is mostly independent of stock market and stock investors don't switch to BTC at all. Some of tham might have it in their portfolio, but sust as a side investment.
If someone is familiar with BTC and likes the volatility of a crypto market he'll just stay here and keep trading and if he doesn't he'll turn to stocks, real estate, startups, whatever. There won't be a big money flow from stocks to cryptos. Stock investors will prefer to hold cash and be able to go back into stocks when the price is right.

As someone who has been active in the stock space for years, I find Crypto to be a much more interesting playground (active since 2013). CNBC is downright boring to watch these days because they are covering dinosaurs (including Apple and Facebook). The current financial system will not see Bitcoin or other cryptos as a real threat until it is already at their necks and they are displaced. Lets take the Blue Apron IPO yesterday, watched it open live, felt like I was looking at a dated system that was rewarding a company for past performance in a space that has already shifted before its feet. Investing in an interesting ICO is much more palatable for me these days, but I am risk averse and can stomach going down with the ship.

The stock markets are down and it is expected to go down further,there are rumors that there will be a economic crisis looming ,the fact is no one can predict before hand whether there will be a crisis or a recessions and will investors move their assets to bitcoin in the mean time,it is highly unlikely we could see that trend for now,it might happen in the future but not at the present situation.

Nobody knows but I think that they are all similar, as some investors deal within the market and they have invested into bitcoin. Plus we all know how big is the uncertainty about bitcoin, it could easily crush. I doubt that investors will move from stocks to bitcoin within a second it will still need more years for this and if it would happen in the future.

Since bitcoin runs against the interest of the banks and governments then I think the most likely scenario is that if the world economy does perform badly then that will benefit bitcoin, look at the countries that had economic troubles in recent years, bitcoin is flourishing there so I think it is to be expected that bitcoin will do well in an economic crisis.

if people's investments fall they're gonna look to safeguard their money. crypto is not the place to do it. it'll be bad for bitcoin. bitcoin has existed throughout an epic global bull run. it hasn't known anything else. it'll be interesting to see what it does when the party finally stops.

Declining stock markets--say what?  I guess I only follow the US, but the Dow & NASDAQ have been on a tear lately and certainly haven't been going down.  Are worldwide markets down?

There might be an argument to be made that people who take their money out of the stock market (thereby causing it to decline) may put some of it into crypto, which would be an argument for an inverse relationship.  I just don't know if that's true or not.  Crypto is a strange beast and I don't know how much wall street money is flowing into it.  Precious metals tend to go up as the stock market goes down, but those are seen as flight-to-safety investments.  Bitcoin is certainly not stable enough to claim that.  Lately it seems bitcoin has been increasing right along with bitcoin. 

a quick look at a couple of charts of European indexes shows a normal technical selloff after a nice run.  In fact most of them are near support levels now and shouldn't go down much more in the near term.   Meanwhile cryptos are rolling over here and getting ready for another selloff within the next couple of days which will take the total market cap below $90 billion near term, and we could get as low as $65 billion in the next month.

I don't think it will affect them either way.   I would safeguard my money in crypto, if the price was right. If bitcoin ever gets back to $500 again after a year or two of no volume action, I'll make sure to get all in. I don't discriminate and will get into any investment I think is attractive at the time.

Declining traditional stock market is GOOD for bitcoin.

Bitcoin is a hedge, thus it's a doomsday meter for the legacy financial markets.

Stocks have no connection with bitcoin at all. CryptoCurrencies is a totally different platform than stoxks. The main reason for the increase is stock is mostly on different news about the business. While in crypto market other than ethereum news doesn't affect the price. And the people who are aware of stock market may not be knowing anything about crypto world. So it has no connection with bitcoin at all

usually when something like that happens the money goes into MULTIPLE other things. in the past years bitcoin started to be one of those things but it still is a small portion of the choices investors make. mostly because it is not regulated like those other assets.
in any case there will be some fresh money coming in but i wouldn't expect a big rise out of it specially with all the drama that is going on!

I would think declining stock markets would be good for Bitcoin. People panic sell and look for other opportunities.

I can't find a definite correlation between stock market indexes and bitcoin, though it makes sense to say that when stock markets go down as a whole then bitcoin will go up somewhat because people are getting their wealth out of company stocks, and by just keeping the cash there does not yield them anything. So bitcoin is one of the logical alternatives. But bitcoin is ocmpletely unknown to most stock traders anyways, so until then we won't see as strong a correlation as say, USD and gold.


Not exactly the biggest crash but around 2%(https://www.google.com.au/search?q=dow+index&ie=utf-8&oe=utf-8&client=firefox-b-ab&gfe_rd=cr&ei=RTVXWYiYHuTc8weVuoqYBA). And that's a lot for the stock market, 2% sounds like stability in bitcoin but for Dow, that's a whole lot....

as it is now bitcoin follow its own pattern, because until all the issue are fixed, the value will not accelerate regardless of what is happening outside of this world, in the forex or stocks world

all those things can only help the bitcoin value to grow but only after the important problems are solved, however we might get the standard pump and dump like has happened with grexit and all the other financial news regarding the "fiat money"

well even the have different target but still stocks can affect investors, and two things whether they will place their money into crypto and try to gain or full everything out and push crypto investors to follow the trend of removing their investment and wait.

In theory, money could flow from insecure stock market to BTC. However, the problem is crypto economy s currently also very unstable due to pending block size changes.  So I think something else might profit from this, maybe real estate markets.

Technically if people begin to see the stock market crash then the people that have that stock would start cashing their stocks out so they will cause the stock market to drop down further. Stock Markets are very dangerous because they don’t really have as much certification any more via paper, only a few people get them so the other people that do things electronically own nothing.

In my opinion bitcoin is completely independent of the stock market.

Most stock market investors don't see bitcoin as an alternative, nor do bitcoin users play in the stock market. There is no logical link to prove or deny that declining a stock market is good for bitcoin.

Rather than focusing on another field altogether you'll often find that news within bitcoin makes the most impact on the bitcoin price. For instance, hard forks, scaling debates etc. will often change the direction of the market extremely quickly, and so will regulations in countries.

many still consider bitcoin a high risk investment. and they are not completely wrong, there is still some risks involved with investing in bitcoin. and the swings are still big and the market hard to predict. which is why there is never a big amount of money coming in. everyone always diversifies and invest a small amount in bitcoin because despite all the risks it is still the most profitable while secure asset to invest in.

bitcoin is the safest for someone who wants to hold for long term though. stock trader always prefer the fiat when liquidating but its not going to grow anytime soon after it. one market that they could go though is the forex which they can greatly profit wherever the market is going, it however requires more skills on eyeing inflation.

It all depends upon how money wallet street money is flowing in to the crypto market and if that is true then we could see a big bubble in the market and make sure that it will burst within a short period as they are the masters of manipulation when it comes to investment. :D

It is a high risk investment because there is not that many people interested in holding their coins for the price of Bitcoin to go up compared to the amount of people that just want to spend Bitcoin online. If Bitcoin was treated as a collectible item then it would have a larger value.

Stock market is totally different from bitcoin. Peoples' investment to stock market contributes to the economy. Investment is  fuel to the economy. For some people like us we also put out money to bitcoin, partly for investment and partly because we see its bigger purpose. Decentralization is one of the biggest advantage of bitcoin where we bank on our own. No longer dependent to separate institution or bank. This is also the reason many of use get hooked into bitcoin.

I don't think that stock markets and Bitcoin have any connection. Yes one may argue that people will ship their money from stock market waters to the rich shores of Bitcoins, but that's rare people who will be invested in Stock won't do that easily, global markets are facing uncertain times look at UK elections or Trumps comments, there a is a global caous the coming and what it will bring is spooking the markets.

Theres an argument that a financial crisis could be good for not only BTC but for other cryptocurrencies as well. We have witnessed traditional investors' appetite for risk as shown in their willingness to directly join in ICOs. This means that they are open in investing in new types of wealth generators.

I think the stock exchange and the bitcoin both are completely different, the nature of the business is maybe same, but the stock market will not relate to Bitcoin investment. I don't have much knowledge of this stock market, but I am learning. One thing is sure investing in the stock market will give you profit or not I don't know, but if you invest in bitcoin, it must give you profit.

Yes they are totally different. When you invest to stock market you are buying the stocks of the company, meaning you become one of the owners of that business.  Either you believe in their business or you see potential in the company.  In bitcoin investment you see potential that its value will grow because of its characteristics and benefits to all of us.  If everyone can see that good qualities and benefits of bitcoin system then its value will continue to rise.  We are just starting at the bitcoin economic life and everyday new people is learning bitcoin and new company is joining bitcoin. When we reached that stage of full bitcoin adoption then i just cant imagine how much its value by then.  :)

The fact that bitcoin and stocks are not correlated assets, does in fact connect them somehow, let me explain, when stocks are not doing well, people feel unsafe about the state of the economy so the price of gold tends to go up, if stocks do well then gold tends to do poorly, the only reason this line of thinking still does not apply to bitcoin is because it is a very new market but eventually it will apply.

Usually good the money moves to other assets which used to be mostly commodities gold etc, but increasingly digital assets such as cryptocurrencies are becoming part of the asset mix. That said not on the significant asset level due to no ETF's being approved yet etc, but more for individual investors.
Given that their is some instability concerns in BTC though some of the effect is mitigated for now but will likely be factored in soon enough.

At some point bitcoin is going to become another asset where you can invest your money and let it grow, in fact I’m surprised we are not at that stage already but at the same time I’m grateful since this gives me the opportunity to get as much bitcoin as I can before the price of bitcoin becomes unachievable to most people in the world.

This is such a  great question i am turning my response into an article.  So here is the rough draft. (Completely inspired by your topic )

There have been numerous times when cryptocurrecy took an opposite plunge or spike when compared to Wall Street, but wall st seems more unpredictable.   Bitcoin has been stronger and more steady upward than gold even.  Oddly, perhaps because it is decentralized, bitcoins ups and downs seem surprisingly independent from and unaffected by the stock market fluctuations. 
Patterns appear and fade but there isn't yet a constant comparison which is actually refreshing. 

When real estate crashed earlier this decade it felt as if it was directly responding to banking measures, and the stock market surges and bursts.   Then real estate came  back  and still is on its way up but it is a generic nudge that moved it first, at the hand of Fannie Mae and Freddie Mac.  When one thing is tugging the other pushes away there is no harmony, and at the risk of sounding paranoid it may be intentional.   It's like all of these measurements of our wealth -our homes, our traditional bank accounts, our stocks and bonds, out mortgages, all of these things seem to always be out of proper orbit somehow.  It's as if one part must be counteracting the other and it's a constant wobble, from over correction, like a washing machine with all the clothes on one side. Each measurement of our wealth depends on the others to exist and we, the very owners of the so called wealth have almost NO control over the course of the life of our own dollar.   Bitcoin, in a much more spherical, smooth orbiting system is not centralized and is cannot be thrown off by the prod of a government subsidized mortgage insurer, thank the Heavens. 
Hope it makes sense.  Cheers ! 

Being a stock exchange trader for long time both commodity and equity i would say the stock market crash good sign for crypto currency because traders not less than gamblers once they loose hope in one thing they will find another for investing .Thats what happened with me first started with equity then commodity now crypto currency. Not all but majority.

Old school investors get used to old approaches. Interest rate is up, stock down, going into treasurys or any safe haven but bitcoin. As it posted above top finacial groups still keep away from BTC. As far as I am concerned it's for bitcoin benefit. If that liquidity has been pouring into cryptomarket, current volatility would seem like a noise.

Its really depends if people getting profit then they try to invest other place like bitcoin . Its all about interest towards particular trade if he is having enough knowledge about cryptocuurency then can  enter .By only intention of money making and not researching will end upto loss. I think stock market crash will not make much difference if people really holding money they will invest in market when it is really down and keep that for long term.

While you are correct overall in your analysis I will disagree in the part that you say this will be bad for bitcoin, more money in bitcoin will never be bad, the more money there is in bitcoin the bigger the incentive to create bitcoin related products, services and solutions, that could help adoption greatly since those deeply invested in bitcoin will be very determined to make bitcoin a success.

This is the first thing that come to my mind as well. Maybe this is a good sign for bitcoin as a whole. People from stock market are going to bitcoin ecosystem. So additional cash flow to the market is good. And once they found out that bitcoin trading is somewhat "easier" than stock trading, then they will stay for good and maybe ask some friends to join in the crypto trading.

I would not sign your statement. Nobody really knows where Bitcoin will be in some years. There could be technical problems which let the project die for any reasons or there is a successor that successfully overcome the weaknesses of the current Bitcoin design. I probably should have asked for cryptocurrencies in common instead of Bitcoin to make it more clear.

From the way I see it, every situation presents its own opportunity and lessons the opportunity this gives us is to those who had wished that when the prices falls they would buy, now is their time while the lessons learnt from it is on the basis that, it will not always be on the positive side, and the negative side is always around the corner.

Bitcoin trading is not easier than stock trading, if anything it is even more difficult since many of the tools traders are used to try to predict the market are not going to work when it comes to bitcoin and altcoins, also bubbles are very big and short lived in bitcoin so it is difficult to take advantage of them if you are out of the market and are not holding any bitcoins yourself.

bitcoin is famous all around the world and it has increased its value in stock markets also. Now many market managers are ready to get their money invested in bitcoin and they are ready to invest in bitcoin fearlessly.

I think it would not affect bitcoin at all, since stock market and bitcoin is two completely unrelated things so even if stock market falls, bitcoin won't rise or fall. It would only affect bitcoin if many who sold their stocks got interested with bitcoin but for now I think the current state of bitcoin would not attract many stock market investors.

Exactly, I fail to see any correlation between Bitcoin and Stock market. They are independent, only similarity is they both are investment asset. Many people argue that if Stock market fails, there are maximum chances of people turning to Bitcoin. But the truth is bitcoin community comprise of less than 5 million people. There are high chances that most of the stock traders wouldn't be knowing about bitcoin and some who knew wouldn't just jump to bitcoin instantly.

I too believe that there is no relation between the crypt market and the stocks. Both function in different platforms and as the mate said the people getting into bitcoin has increased though we hold less than few million of users all around the world. If the same growth happens, same as Countries having their own stock market Countries will have their own crypt market for all sorts of trading within the country.

Greed will make bitcoin die and be replaced with another coin with a better features and can function as a currency and not just as an investment. Coin that can be used on an everyday transactions and that wont limit you because of high fee. They see now that bitcoin can be replaced. So dont just store your bitcoin for years and just dont read news about it. You may loose the value of your bitcoin if that happens.

In the event that you are getting some information about the estimation of bitcoins, it will increment and other securities exchanges don't impact it. To comprehend this you should first comprehend that, each item online has its esteem in view of its utilization. The more its utilized more its esteem builds, now remembering this reality you can without much of a stretch see that bitcoins online utilize isn't diminishing so isn't its esteem.

I don't think that they affect each other, well maybe yes if some of the stock market investors already jumped in Bitcoin , but i see it the other way, Stock Markets have been unpredictable and it's dependent on how the business generate profit and we cannot correlate Bitcoin to it and because Bitcoin is rallying up now doesn't mean Stock Market should be on the bleeding stage or decline to it, For it is just a casual decline and will recover soon Again, it is still dependent on how the Business generate profit. Anyway, I found this  article  (https://www.investopedia.com/articles/financial-theory/09/october-effect.asp)and it seems very interesting, specially to stock market investors, is it still happening now?.

The possible decline by some for stocks and even forex can mean that they might be looking for ways where to put their money and earn more interests. I think this is already happening right now as there are more and more clients that are expressing gusto to be a part of the Bitcoin platform. They are aware that Bitcoin has been growing at astronomical rate and they are looking for ways to get into the action and get some slice of the profitable pie. This can be good news for Bitcoin and cryptocurrency in general. When CME's futures would already be open to the public we can see how many newcomers will participate in the new market.

Bitcoin and Stock market are two distinct things and are free of each other. Bitcoin is a framework that arrangements with a great many clients and it don't depend on some other outsider. Declining securities exchange can be useful for Bitcoin if its clients turn towards bitcoin and once they know the estimation of bitcoin they won't lament about his/her choice.