Bitcoin Forum

I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!

OP, can you put that in a chart? I highly doubt that it's true! :P

You mean the price of Bitcoin increases or Bitcoin dominance? I guess you should include some evidences to convince your readers. I wouldn't be surprised if this is true. The markets are somewhat interconnected.
Bitcoin is the main cryptocoin. Investors trust it more I guess

Plus one. :D But even if that is true, the chart would only be very limited, and therefore inconclusive, because you've been in cryptocurrency for just a couple of months. That means whatever pattern formed within that short period of time does not speak of the bigger picture.

BTC accounting more than half of the market means it has a bigger market cap than all the altcoins, which could also mean that it has more value than the rest of the cryptocurrencies. It has higher demand compared to all altcoins combined. It also means Bitcoin is more trusted or it has more supporters and investors compared to altcoins. As to the why, I guess that would be your part to dig up. :D

I'm wondering if he can put it into words, because I have no idea what he's talking about.

Share market?  OP, are you talking about the stock market?  And even if you are, you've only been watching the bitcoin market for two months, so I don't think you're looking at enough data points unless you've actually researched past price movements.

What do you mean by "the percentage of BTC"?  You really should be posting all of this in the local boards, because there's an obvious language barrier here.  Nobody is going to be able to answer any questions for you if they can't understand what you're asking.

There used to be inverse market movement between the stock market and the cryptocurrency market. This isn't the market situation throughout, over the past two months too there might be times at which the stock market went low and cryptocurrency prices grew high. Almost every country's stock market is observed to be low, and same is with our cryptocurrency. We haven't experienced very big growth over the last two months.

Let's put it this way, the stock market is inversely correlated to cryptocurrencies price, do you agree?

The thinking is that some percentage of people seem to think that Bitcoin is a good store of value and a safe haven. So when the global financial

markets are struggling, these people turn to Bitcoin as a hedge against potential losses in the event that the Stock markets might collapse. I am not

convinced by this, because I think there is only a very small percentage of professional traders that would shift "safe" money into a high risk investment

option like Bitcoin.  :P  I will leave the other questions to my fellow members to answer, because I am pressed for time now.  ;)

If you meant the stock market as a whole, probably through the S&P500, then definitely not. In a few cases sure, probably, but the inverse movements of both asset classes are mostly due to coincidence. As a whole though, if you zoom out for to a data point of more than a year, then nope.

I too doubt about the correctness of this statement. There are many major stock markets available worldwide like NYSE, Dow jones, Nikkei, BSE etc. Which market you are taking as a reference. I too want to see a chart for the same!

What I have seen as a trend, whenever traditional stock goes down, gold price rises! Because big ticket investors usually move their funds to the gold market to safeguard their capital. It doesn't happen every time but yes, most of the times! I doubt bitcoin has been taken over the place from Gold and it is highly unlikely because Bitcoin is so much more volatile than any other traditional asset class!

It's a complex relation. It's true to some extent. When there's a sharp bull in large share markets, people invest into crypto. But it's almost parallel to average share market.
For example, prices of crypto goes red in November and December and so does the Share market.

As many here have already stated, simple chart timeline might help visualizing and also proving such point. But personally, I don't think those markets are highly correlated. Even though there is some resemblance, such as when we consider the fact that cryptocurrencies offer as an alternative to fiat (stock market units), I don't see a lot of people investing/trading in stock that talks about switching to crypto as soon as a market crash happened.

Yes definitely I would like to explain you this. Basically most of the trading takes place in BTC trading pairs over all the exchanges when it comes to alts. You don't get a lots of alts listed with USDT pairs so whenever there is a dump in the market people don't go to USDT instead they just sell out their alts and keep BTC thus controlling their BTC count from falling. This is why BTC dominance always increases whenever their is a such a dump in the market.

I did not pay attention to the stock market so I was more focused on the cryptocurrency market, meaning that if so when cryptocurrency is currently down then the stock market is going up?
People will not pay attention to that because they are more focused on observing BTC and obviously the percentage is increasing because there is a lot of market volatility there.

yes i agree with you @ alani123 there must be concrete evidence about what the op said. in my opinion the rise and fall of bitcoin has nothing to do with the stock market because they are different. bitcoin is decentralized and the ups and downs of bitcoin prices are influenced by demand and supply while the rise and fall of prices is greatly influenced by company policy and political policies of a country and also influenced by the United States dollar. so I think the ups and downs of bitcoin prices have nothing to do with stocks.

i have don't think that there is no co relation between crypto and share market , and you are saying that share market and crypto market is inversely correlated which index are you talking about ??

What stock price do you mean? give a little explanation to other friends answering your questions in this forum, let us help a little about your question, if you observe bitcoin is increasing more than altcoin, I think it's true that bitcoin dominates all crypto currencies and we all know about it  ???

I don't think there is any correlation with shares.

There is however a correlation with the dollar. When the dollar weakens, both gold and bitcoin rise. When it strengthens, both gold and bitcoin weaken.

The big development in 2019 was the Fed deciding to cut interest rates this year, which weakened the dollar from Jan to August, with a corresponding rise in gold and bitcoin. (Bitcoin rose from about $3000 at the start of the year to nearly $11,000 by mid year.)

However economic data coming out of the US has now improved, and it looks like there won't be anymore rate cuts - which is why the dollar is strengthening again.

Coinmetrics has some interesting charts to see the correlation between the prices of two different assets. Most are crypto related, but there are a few traditional assets such as Gold and S&P. The latter is the most approximate entry to compare to, of those available.

In order to see the correlation factor at work, I’m comparing BTC/S&P and BTC/ETH on the same chart:
https://i.imgur.com/g5rfXaN.png
https://coinmetrics.io/correlation-charts/#assets=btc-s&p,btc-eth

The chart shows a strong positive correlation of between BTC and ETH, even more so since April 2018 with a value of around 0,8 (maximum is 1 on the scale).

On the other hand, the hypothesis of the OP should show a significant negative correlation between BTC and S&P, meaning that when one goes up the other goes down and vice-versa. The closer the correlation to the value of -1, the more negative correlated they are. Nevertheless, the correlation factor between BTC and S&P flips positive and negative, with values within +/- 0.2, which is a weak to negligible correlation with variable direction.

At least with S&P, the hypothesis does not seem to stand as valid.

Additional: https://coinmetrics.io/correlation/

Would Please share the legal data.I remember in 2017 share markets dumped and bitcoin and others crypto dumped also.That time bitcoin price dumped 4.5k$ to 2.1K$. So I am not agreed with your statement.             

Seems like there are no prominent direct relation between stock market and crypto market as both of them are to some extent speculative. Real estate on the other hand has some relation to both crypto and stocks and on a season of real estate buying and selling, which is Nov, Dec, Jan and Feb here, the crypto and stocks dips low.

That's a useful graph, pretty consistent with my frd from OKEX (http://okex.com) claims

If the op means what coinmarketcap calls 'dominance', then it's sometimes true and sometimes not true. Namely, it used to be largely true before 2019, I would say. If you take a look at the price and dominance in 2017 and 2018, you can see this clear relationship that when the dominance is growing, the price is decreasing and vice versa. However, what's been happening since April of 2019 has proven this theory wrong, because Bitcoin's dominance keeps increasing more or less, and the price was at least going up for a while along with it. You can see the charts here: https://coinmarketcap.com/charts/#dominance-percentage.

That makes sense. When the stock market down, it means investors is losing their interest in stocks and possibly they will go the crypto market to take another investment opportunity.

Why BTC? cause probably it is the only proper crypto currency to invest in. Look, how important BTC to altcoin, obviously only Bitcoin has independent price among other crypto currencies.

Bitcoin is objectively more secure than any Altcoins. as far as price stability goes that's anyones guess; but Bitcoin blows everything out of the water when it comes to security and decentralization. Bitcoin has the most developers working on new projects, hashing power, and it's actually accepted as payment at several places. no other coin can replace or compete with it. thereby, I only own bitcoin If any altcoins fails, bitcoin will still hold value, but if bitcoin fails which I don't see happening, all the cryptocurrencies will fail. but I see all cryptocurrencies besides bitcoin as being more vulnerable and risky than bitcoin.

Lol I can guarantee that that's definitely not the case for the majority. Let's first take note that not every single person that's in the stock markets aren't there to trade. An investor who's asset's went down in value would definitely not move to bitcoin. If anything, the right move(and I assume what a good number of them would do) is to buy the dips on certain stocks that they're bullish on in the long-term.

I do not think it happens. I have seen when the stock market is up the crypto market is also up and when stock market is down the same happens to the crypto market. What you are saying is the exact opposite of what I have checked. The global market today is sideways which is similar to crypto markets.

how is that possible ? when market is down your also saying that all prices of cryptos are down but you said  btc always increased ?  

you mean to say that if the market goes down its always followed by a small increase  ? that seem to be true but not  always  . there are those times that when the market is down all cryptos including btc were still down for a longer time  . and why only btc or why mostly btc increases first ? well because btc is the most valueable coins before others   .

market!! whether the stock market, cryptocurrency, forex or commodities?  btw, I disagree with you.. every market (stocks, forex, commodities, cryptocurrencies) not related to each other, so your opinion is wrong.

You need to stay a little longer.

You're looking into the short term of the charts and sometimes it's like that. But most of the time, the market goes exactly as bitcoin goes. And you have seen the very few movements of the crypto market.

But which share market..? Can you show some statistic relating to this opinion..? It seems like people shift their money from share market to crypto and vice versa but it's not completely true.

When majority investors in fear, wouldn't they sell off their assets first before buying the dips? Isn't it possible for them to take other investment options when they feel the fear will last long? hence bitcoin could be one of the option for them.

But if you are a type of person who won't take cut-loss then I would agree with you.

Bitcoin dominance continues to rise because many enter the bitcoin market and sell their altcoins. Why dominance does not go down, because many people are waiting for halving bitcoin. Halving bitcoin will make the price of bitcoin go up.

although now in the accumulative phase, it was not always for Halving's reasons. I monitored since baakt began to run, derivative trading activity increased. In recent months there has been a large number of margin and futures activities between Btc and usdt. There has been a shift in interest periodically and caused a reduction in altcoin volume on the spot market.

Lol, I also noticed this and become curios. Because I think stock shares are totally opposite with crypto, and I also think before if tge shares market are dumping, they are buying some cryptocurrencies that's why it's pumping, I still don't know.
Why gold is also different with stock markets.

When the market is down the value of bitcoin is also down, that is not true that the price of bitcoin is high when the market is down, you have a chart or a site that you can include here for us to have some proof and believe you. I think you are saying about bitcoin dominance? Or maybe you should really put some evidence.

Yes that's old, its similar to metals vs stock. Not always, but it tends to happen, as its now another option to flee into when the economy is bad (in addition to gold, etc).

Those people will do the opposite once the economy recovers, sell their Bitcoin to buy the (cheap) stocks. Rinse and repeat, the trader's way of life.

The altcoins are not as good as Bitcoin, its that simple.

Basically both investment platform are independent to one another. The only difference is when it comes to Bitcoin, because sometimes, there are applications that involves bitcoin even if their main platform is meant for stocks. But anyways, for me the indirect proportion is just happening in a coincidence, no valid or solid proof to the theory so, to sum up, if something happens to stock, we couldn't just say the same or the opposite will happen to the market of cryptocurrency.

this is mostlikely happen thats why crypto market increase, there must be also other reasons but to think that more investors moving to crypto when thier shares is down is a good sign that there are many investors considered crypto as good investment also.

I think investors see this opportunity. which is that bitcoin has experienced a long decline. so investors have seen the lowest point of the upcoming bitcoin price. so many investors enter bitcoin and make bitcoin presentations go up. other than that. maybe new investors have been tired and a lot of selling their Bitcoin. I see many traders coming out of Altcoin and choosing Bitcoin.

We have done this calculation a while ago, not entirely sure now but there was no negative correlation between the two

This means people are beginning to migrate back to BTC knowing its potential and altcoins are short lived they might have a good run until now, but people just buy it cause its much cheaper and the price is not stagnant like bitcoin this past few years. Now that traders knows a possible bullrun or bearish movement might happen soon. Everybody is accumulating or waiting to buy in the lows.

Ehh, it really depends on the investor honestly. Some will be fearful and some, the more experienced ones, will most probably be buying the dips. And buying dips doesn't necessarily include dumping their assets before buying dips.

Very unlikely in my opinion. Bitcoin is still a scam in the eyes of a lot of people(especially people aged 40+).

Wait, what do you mean by the stock market? because many types of stock markets exist. I think there is no correlation between the stock market and Bitcoin because it's clearly different target market.
If only within 2 months means it's just a coincidence when the market price of the stock you mean is inversely proportional to bitcoin.

If such an relationship exists, which is quite logical, then it is Bitcoin that starts to rise in price when the stock market falls, because, in the general opinion, Bitcoin is the most famous and most promising of all cryptocurrencies for growth.
  If the stock market falls, you need to make a quick decision to save your money from further depreciation. Such a means for moving your money is cryptocurrency, which does not have a direct relationship with the stock market and which is not subject to inflation.

Some data to back this will help bring more clarity. I have not noticed any such correlation and I'm not sure that's the case.

I don't think there is a direct connection between share market and Bitcoin price, it's more a coincidence. Share market and crypto market are two different market places that are not linked so price changes at one of them don't affect the other and I don't think that anyone can prove there is some kind of connectivity, do don't rely on that.

But the focus now is halving. There may be an increase or even a decrease.
Halving becomes news that is always spread that causes bitcoin to rise, before or after halving there will certainly be an effect. Altcoin has no potential at this time. Many investors are leaving Altcoin and chasing bitcoin.

I doubt there exist a definitive negative correlation or any correlation for that matter between share market and crypto market. The markets might behave in a negative correlation sometimes but there isn't much data to support that. There have been instances when all the markets went in same direction.

The thing I believe is that in the case of recession which might happen in coming future, people might prefer crypto over shares as cryptos are decentralized and safe from such closely linked economic system.

in my opinion the rise and fall of the price of bitcoin has nothing to do with the stock market. both are different bitcoin and stocks have different investment channels. the stock market is strongly influenced by political issues, corporate policies and also global economic and political policies. while bitcoin is not influenced by political or economic issues. bitcoin is decentralized but sometimes the price of bitcoin can be manipulated by the popes

In my experience, the cryptocurrency market has nothing to do with the stock market. But sometimes when the stock market collapses, cash flow has moved to cryptocurrency, I think the reason is that investors want to preserve their investment money and cryptocurrency is a safe haven for them.

That's right, they are really different to each other and we should not compare them, maybe there's a season wherein in they contradicts to each other but not at all, since not all traders in crypto are traders in stock market and not all traders in stock market knows cryptocurrency or that they are trading on it so it will be unlikely to happen.

There is no direct relation but there is actually a relation at all, what you've said is that there are possibilities of market collapse and transfer of funds to cryptocurrency right? This actually means that when the market is going down in stock or crypto, the other investment platform will gain support and investment. So, the relationship is indirect proportion and it is a theory by now and we could possibly prove it when we are to inspect stock market to increase because of the declining market of bitcoin and other cryptocurrency.

Really? Did you notice any such relation? I have been trading in both the markets in India and I have never experienced any direct relationship between both of them. It's always unpredictable. I have just seen it once that was in the month of october when the crypto market pumped around by 20% while after a week or so the share market contracted around 2-3% but I feel there is not any direction so far as people involved in trading cryptos don't really go in traditional markets and more importantly people involved in share markets especially the institutional investors who drive most of the price are not at all involved in crypto trading due to stringent regulations.

If it has gone down a lot, I am mining Litecoin and this week it has gone down.


 Cinecalidad (http://cinecalidad.plus)

In a saturated market, investors prefer to secure their assets on the strongest coins, this is to minimize price movements that are too extreme. So, most prefer to hold BTC or just monitor price movements, there are also a few who choose stable coins.
In addition, many factors influence price movements, so fundamental and technical analysis must be balanced. Price trends that tend to rise after the halving moment provide a little encouragement for investors to choose bitcoin, try my luck I guess. Because this is very dynamic, difficult to predict.

Because the capitalization of bitcoin exceeds the values ​​of all taken altcoins and depends on it. Bitcoin capitalization has a very promising history and it is increasing, almost every day.

Right! When the stock market declines, cryptocurrency prices rise. When investing in stocks or cryptocurrencies, the purpose is to make a profit, so when the return on investing in Bitcoin is much higher than buying stocks, many people give up. At that time, the stock price went down and the price of BTC increased.

If yes, feel good because of that, proving that many people are interested in cryptocurrencies especially from large investors, you can understand when a newcomer learns about cryptocurrencies they still do not have much. experience in choosing which coin to invest, so always choose the top coins and of course they will choose bitcoin, it can be seen as a symbol of cryptocurrencies

there really isn't anything to do between the stock market and the crypto market. maybe people who invest stocks divert their funds into crypto, and I think this could be one of the reasons why that happened. because I have done it in investing, when the crypto market or the stock market experiences a price increase then I will divert funds to its depth

Bitcoin has subtantive and individual platform for the ceosystem technology. there are more than more investor are fighting for finance as well so that reason the crypto market had taken a half of whole market.