Bitcoin Forum

If you happen to watch also the stock markets, in the last couple of days and especially today there was a huge crash also in US (and around the world of course). It seems that people are selling assets (crypto and stocks). Is there a correlation or not?

Gold is rising while equity markets around the world and cryptocurrencies are crashing. This kind of punches a hole in the theory that Bitcoin will be considered as some kind of digital gold. There definitely is a correlation and investors are selling risky assets because the yield on treasury bonds is increasing, making them more attractive.

It is disappointing - I had thought that a drop in the stock market would see money move into Bitcoin, but that's not happening at all - everyone is going back to that old time asset: gold.

Bitcoin is still seen as a risky asset to hold and we cannot blame people for thinking that since that is the truth, but give it time, if bitcoin really becomes adopted worldwide by a huge amount of people there is a chance people will begin to look at bitcoin in a similar way people look at gold, this is just an indication that its too soon for the persons to think of bitcoin in this way.

Give it some time, January and February are always like this. Although I had also thought that bitcoin would gain more attention because of stock market crash, but as it seems people are going for the safe choice of gold.

Actually not all the people believing that cryptocurrencies make them profit they think its to risky that why their focusing on gold investment.It takes time to adopt about the crypto wait and observe them if they actually believe in it. for the mean time be patient and wait for a few weeks the prices of stock and bitcoin will get back to normal.

But we should make note of one thing, the old asset is not going to be blessed for long time. The gold is just temporary hype and it has never gone beyond the specific ATH every time. Government regulates it and they will apply the limits always. So we dont have to get scared out of this asset. People will buy and sell and when they will see there is no more use of that trade and the crypto's or other stock exchanges which you think are getting affected too will start rising back again. So on the positive scale im seeing this as good opportunity for those who were not able to get into crypto at lowest points. Now they can earn huge out of it by investing at this low and focus on the long term gaols. 

The early months of the year make bitcoin price slow down. I think that the demand of the people really affects in the price of cryptocurrency. As I also get some info's, bitcoin is turning down when the first month of the year. We just have to go in the flow, whatever the price indicated to have profits.

Of course, it is but the market is completely in crises and giving the opportunity to the who wants to buy at this dips. Now it is the right time for the people who want to buy the Bitcoin at this position, now every market is completely in the downtrend, even i never expected this will happen.

It is very much alarming!I cannot believe that this is really happening.All markets are down.Btc price also down.Altcoins are very much affected.I do not know what will be the action of different investors and other people that are hodling.Hoping to hear some good news.

Yeah,which is the result of panic selling among the cryotocurrency investors and causes downtrend on bitcoin and other currencies by 20% everyday.Now the price of bitcoin is around $6000 and it may falls more for some weeks.But I don't know the real factors behind these crashes.

The biggest problem is that frightened investors are hardly returning. It takes a long time to stop and recover. The EU's announcement of the April crypto regulation of the currency may have an enviable impact on the head of the story, of course in one way or another.

Real prices were overwhelming and now the level of the market is in progress, it is very likely that this story will lead to what one of the leading ETH people said that after such a collapse, a lot of small coins will cease to be stationed. Perhaps in the long run this is a good thing.

I agree that main theme is the rising of treasury bonds yield, but the situation may get worse since a lot of investment was also done in volatility based ETFs - especially the ones that were shorting volatility (like XIV which was crashed from 140$ to 15$ in just 2 days erasing half a billion $ from Credit Suisse P/L *** since they hold 1/3 of these shares). XIV pre-market trade is halted for the moment and there are rumors that CS will be forced to liquidate what's left...
On top pension funds - not only retail investors - have been invertsing in these ETFs creating a huge bubble which makes the so called BTC bubble look like a kidder garden.

*** Correction no impact on the P/L of Credit Suisse, just the holders of XIV will suffer the loss

I have also met the news about stock markets crash. Americans are in panic, and crypto society is at a loss.Gold price is rising.

It's (partially) just the time of year. Cryptos dip every year at this time, and Jan/Feb are notorious for being the worst months for various industries, especially retail. If every day of every month resulted in predictable, rising stocks/coin prices, we'd all be retired :)

The relationship of bitcoin, altcoins and the market are intact. Without bitcoin there is no altcoins. Without bitcoin and altcoins there is no market place today. The price crash will be normal again when both gain the miss part.

Yes, but the correlation between crypto market and the actual stock market is quite astonishing at this point, both crashed almost at the same time.

Well, from what I know, the fact is now the stock market is going through a crisis up, and cryptocurrency is recovering. CMIIW

could be the lunar year vacations in east asia, alot of investing slows down this time of year.

there's a known saying among professional asset managers: 'daily fluctuations are meaningless'. This is true for equity, or 'fiat' financial markets at present, as its clear that all we witness lately is reasonable daily fluctuations driven by normal professional and institutional activity, while not varying too far from the value of underlying assets.

now, for crypto markets things are entirely different: its an emerging, fragile, small and inefficient market filled with irrational, unsophisticated players acting on incomplete information. its two different markets, dominated by two different types of players, so comparing the two is practically insensible.

Don't think always negative. Try to be positive and think about positively. Bitcoin and others coins need some time to recover price. There are no rules to increase price all time. Price can pump or dump. After every dump, price will be growing. Don't worry about the price. If you have coin, you should hold it until high price on marketcap.

Yes the btc crash seems to be over and their seems to be a light at the end of the tunnel. Today prices is around 8k and above which means it is getting a bit stability over 8k. So it is a happy time for those who have started to invest back again int he market.

Your right Stocks and indices together with cryptocurrency naturally dip down at these levels, after a fourth quarter rally between September and December, these trading instruments, most specially stocks must perform well in the fourth quarter to prove to all promising investors and already investing that, that certain stocks can indeed have the capacity the whole next year to perform, and not accidentally Bitcoin together with other crypto must show performance as well.

I do agree. Since the yields on cryptocurrency is greater than compared to stocks market. Crypto is a risky assests that can yield 200% in a day while stock market opt to have a yearly gain of 3-5%. Definitely there is correlation given the fact that most of the people who venture on stock market are gain oriented. Therefore, they can't miss a big opportunity to make profit in a single day with the help of cryptocurrecy.

 Stock and crypto crash are somehow correlated, but crypto is recovering faster than stocks as at today.

I never believed in this story from the beginning. When financial markets start falling like dominoes, people run from speculative and risky assets into hard assets such as gold and cash money. They look not so much for earning profits then as preserving their wealth and having ready cash in their pockets immediately available to spend. Bitcoin is a highly risky asset, so there is no ground to think that people will be looking into it as a safe haven.

I originally thought there wasn't but then I looked at the history in December and both markets went up at the same time. Leaving me to conclude most probably that they are working in unison but not necessarily actually together (obviously can't collude).

There might be some connection, sure, but just the slightest one. Additionally the market of cryptocurrency seems to show good signs of its recovery. Of course, it is too early to say it is growing but it will make a cool jump up soon.

If G20 countries decide to put some regulations together, as per recent news, this will draw in the market institutional money; I'm expecting a good sustainable lift of market cap at least for tokens and coins that have substance and / or a solid business case like EOS, NEO, ETH for sure... but I'm not quite confident about BTC. Maybe that will make correlation between BTC and alts to break up.

i do not understand how to trade in stock markets and i think there is no correlation between stock markets and crypto markets because they have their own market and if the current situation both of them facing downtrend i think it was just a coincidence but since beginning of year crypto markets price is dropped and i have to say the price still can't recover back yet

There should be some form of correlation, though it may be well hidden behind Bitcoin's volatility. Just think, both stocks and bitcoins are traded for the US dollar, right? Thus, if stocks crash, we should expect the dollar to rise in value, which it almost always does. But if the dollar rises, Bitcoin's price should definitely go down if we assume that its value remains the same. This is just one type of correlation, which is more like a knee-jerk reaction but still. It will completely swallowed by Bitcoin's volatility, though.

If bitcoin becomes more valuable than it is already then the scams and the hacks are going to get even bigger just a few weeks ago we had the biggest hack in the history of crypto and I'm sure we are going to surpass that in the future, so people will need to adapt and understand  bitcoin or they will surely lose all their coins by their mistakes.