Bitcoin Forum

Do you think current prices on the market for each cryptocurrency are largely attributed to events in the mainstream world? I've noticed that every time the stock market goes up, crypto goes down in price. The same thing happens vice versa. Even Facebook's Libra announcement, had a positive impact in crypto's price within the short term. I believe this shouldn't happen in the first place as crypto was meant to distance itself from the centralized world. Linking mainstream events to crypto, will result more harmful than good, in my own opinion. Crypto should be independent from whatever happens in the outside world. Once this is achieved, cryptocurrencies will be able to reach prices far beyond reach. At least, that's the way I see it. Maybe I'm wrong. But, if crypto is truly linked with events in the mainstream world, we could have an idea when it'll rise in price or when it'll fall.

What do you think? ???

Not sure why crypto would ever be outside of the real world, especially when we are moving towards adoption every day, it reacts to the real world more and more. When the news about banning crypto decrease at some point, i would say that btc should react similar to gold on news. Especially when reacting to wars.

I don't believe so for "each currency", but I do believe that it's possible for bitcoin and several of the other larger currencies. Things such as the actions against Iran, China mining issues and many others tend to make bitcoin flucuate wildly since Bitcoin can be seen as a risk aversion asset at times similar to gold.

In fact, the trader moves because of the event. This is called fundamental analysis.
Most of us assume that an event that occurs in the real world related to crypto must have an effect on price movements.
From this, I also think that this just forms of the Fear of Missing Out. Because some news can have good effects and provide benefits and can be vice versa.
And this does not hurt in my opinion. Because the implementation of crypto is also not so massive in the real world.

I think it's a case to case basis depending on how much influence that event has to the place it is in and the organizer of it. Imagine if someone just organized an event to spread the information about Bitcoin, and he tries to market it, but only a few people come. When someone like Binance hosts an event, it's quite easy for them to spread the news about it, and they are one of the biggest exchanges there could be impactful results.

So when Facebook and alike tend to lean towards the cryptocurrency space, it's going to be influential, like the Libra you mentioned.

You cannot separate what the world is doing and how it's affecting cryptocurrencies; it's not independent of anything.

It's unfortunate to see how closely crypto is linked towards mainstream events, as it was designed to be free from middleman. In order for crypto to work as intended, it needs to become independent from what happens in the mainstream world. Only then, it can be used as a "safe haven" against the traditional monetary system of today. With a closer look at the crypto market, I was able to determine that crypto behaves similar to the traditional stock market. Positive news in the mainstream world influence crypto's price across the market, whereas negative news does otherwise. Considering that most people are into crypto for the money instead of believing in its potential to decentralize finance, the market has reacted in strange and bizarre ways at times.

I'd be surprised to see the impact of crypto's price on the market with the decision of worldwide governments to ban their use in their entirety. While crypto is still decentralized, the mere fact that it'll be declared "illegal" would negatively impact its price across the market. Of course, I don't expect this to happen anytime soon. But if it does, you'll realize that crypto moves accordingly to events happening in the mainstream world.

Nonetheless, I hope that crypto becomes more independent as decentralized solutions (DEXs, atomic swaps, etc.) become widely adopted by people in the mainstream world. Only then, mainstream events won't have an impact (either positive or negative) over crypto's price. But the mere fact that centralized exchanges dominate the space, explains why so many events in the mainstream world are directly linked to crypto's price on the market. Just my opinion :)

not necessarily every digital currency is mostly caused by events in the mainstream world but that is one of the major causes of most currencies and what I know is stablecoin which is very much streamlined towards major world events

it should be related because crypto itself has become part of the world economy, yes even though the amount is not as much as shares that have long existed.so of course the price movements affect other commodities.
yeah it seems like every 4 years crypto will be at the peak well that's just my assumption, everyone has different think.

I guess anything that is publicly offered for buy and sell is going to be affected by the world's events. At least those events that might affect directly or indirectly affect it. But with so many factors, including fake and real news, affecting the price of crypto, we can hardly tell sometimes which made the biggest effect. But I don't think there is such a thing as crypto is rising when the stock is falling. I don't think there is a consistent pattern suggesting that.

I don't see any good effects yet on which of these coins really had gone a full effectivity of mainstream events. What's most valuable this time is adoption, people who has no proper understanding on crypto won't develop a wide visionary in order to make their asset become sustainable.
Price will change unexpectedly, so by means of increase in demand it could reach a profitable value when target is meet.

I also think that events in the mainstream affect crypto prices. because I think now crypto has entered our economic system. and major events that occur definitely affect crypto holders. for example like the Iran-America conflict yesterday. when conflicts occur people will be afraid of losing their assets and therefore they seek to keep their assets secure. some chose gold and bitcoin. that's why yesterday the price of gold and bitcoin experienced an increase.

It could be like that. We can see around us in real life, and sometimes it affects online life too. But not all things connected like that, and maybe it is just coincidence, so we thought that when the stock goes down, the crypto will be up. If that is happening like that, then when the stocks crashed, the crypto will soar to the higher price.

Unfortunately, we don't know the right answer for that, and we only know by coincidence. But if the whole things that become worst in real life, people will search from other sources and one of the sources will be on the internet.

We need to see and research deeply to find more answers if that is connected or not so we can conclude that if something happens in real life, that will affect online life.

I don't think so, All of the payment gateways for ordinary people to create txs to the crypto pegged to the centralized system. Dex, atomic swap or something else will not be a solution. In another case, just imagine what will be happening when the government will be creating an order to block all of the gateways to the crypto and then, people have no choice to do people2people transaction only. The fact that we can't even leave from the centralized entities because it's the main thing for crypto to get more and more demands.

Decentralization does not mean it is excluded from the people. People's sentiments cannot be controlled by decentralization. So people's sentiments are swayed when there happens something in the market. Cryptocurrency is largely affected by sentiments of the people. So price of coins goes up and down acting on sentiments of the people.

These guys moving in and out of crypto are also experienced traders in stocks or even forex. I don't see anything wrong there, they are free to trade in whatever market they want.

Probably caused by whales switching between the two worlds? I guess it's more obvious when few whales do the switching in short time or when regular people (plus whales) switch in large number in response to news/fundamentals. I think the latter is safer for the market. Things could improve when a crypto ecosystem is more developed in the future with increased mass adoption.

I think that the cryptocurrency market does not depend on the stock market, but from the events in the world for sure. if something negative happens in the world, then the cryptocurrency market is constantly growing in price because people want to save their money, and cryptocurrency is the only tool that can guarantee the security of your money. I think that now all people are worried about the situation between the United States and Iran and therefore the price is going up, but I could be wrong

Firstly when it comes to economy and money spent, every field where money is used are interlinked and have effect on each other. You can't make them completely independent of each other. And don't know where you get your stats from, most of the time stocks increases, there's an increment on overall value of crypto and similar move while decreasing.

I think the relationship between cryptocurrency and centralized institutions will be here with us for a long time. Events in the centralized world usually has a way of rubbing off on the price of crypto. Just take a look at the tension between China and US and also between Iran and US

It may have an effect but it is indirect. Each crypto investors' investment decision is still affected by the real-world events. Let's say an economic downfall can either push a crypto investor to either withdraw or invest more in crypto which will have an effect in cryptocurrency market.

Crypto prices are highly fluctuating and they need some event to move up or go down. I don’t think crypto prices can remain independent of global events. What we need is stability in price of crypto, only that can take crypto into mainstream adoption.

Yes, currently, cryptocurrencies are indeed affected by external influences. As the cryptocurrency market becomes larger, I think that impact will diminish. By then, the price of the cryptocurrency market will suddenly change due to the sudden appearance of some people's language. This indicates that cryptocurrency indicates that the market is being manipulated. It has a great impact on newcomers. This is not suitable for the healthy development of the crypto market.

I don’t understand how cryptocurrency can be separate from everything, especially since its infrastructure is getting bigger every day. Obviously the flap of the butterfly's wing will affect crypto prices more and more.

crypto is almost going mainstream too, we can not isolate crypto from other mainstream events specially if facebook is going to launch a currency using the same technology like blockchain. we're lucky to have those events affecting the price, its going to give you profit. we do hope for more adoption of crypto and technology advancements deserved to be on media and events.

Of course, everything is connected. For some, new problems, a new crisis, but for us, people who believe in cryptocurrency, this is a good opportunity to make money. The price rises so fast that the fastest growing in the history of bitcoin has been recorded. I am in shock, I did not expect such a turn, but of course I am happy.

This is all out of our control, I can not be absolutely sure that the price here is influenced by movements in the outside world, but it could be the slightest possibility of happening, even in our world like that. To be sure we all expect the best here, regardless of all that is here it is influenced by the outside world, for me it is not so long as the price does not cause huge losses for us. And sometimes crypto also likes to cast its magic unaffected by the outside world or anything that happens out there. I think everything is unpredictable and enough to enjoy while running it.

If I heard the Libra announcement like a year before I learned about Bitcoin (assuming that it was announced during 2016), then I would never think of investing in cryptos at all even if they mentioned that.
It depends on some people that heard it. Maybe they'll be curious of it.
Consider also the effect of what the media will tell them in case the non-crypto people got curious of what cryptos are and also what the common reference like the Wikipedia will tell them.

Last year Chinese president statement on blockchain adoption took bitcoin to its ATH for the year 2019. Iran USA tension this year also started a bull run. Crypto price is directly linked with what’s happening around us. You can buy crypto when it’s down and wait for some global event that can trigger crypto price increase.

I don't think there are related at all, stock market movement is not related to crypto, though there may be some news that influence both prices and make them to react in a certain way, like the Iran attack could help BTC price and dump the stock prices, we have seen many news event like this affect their prices

Not exactly the stock market itself but something can affect the prices of some cryptocurrencies. Last December 2019, we have observed the decrease in the prices because many have sold their crypto for fiat. This has been linked to the holiday season as we people tend to be more expensive so they sold their crypto.

i think, its really hard to find correlation in those things, as theres just too many variables : /   we live in a complicated world, and crypto markets are complicated themselves
Theres so much going on all the time that its the "broken clock theory". It must match up once or twice here and there, just by chance, theres too many lottery ticket variables constantly
NOW: thats not to say it NEVER does. things like Mastercard doing crypto or the libra thing, could definitely have direct impact on coins prices i believe, as cryptotrading IS a mostly speculative market
So if people lose/gain faith in a coin, it can cause surges easily. It prob best to just try accept what happens day by day, instead of looking for patterns in it (tho that IS a natural human thing tooso dont feel bad)

It's actually impossible for cryptocurrency to be independent of the mainstream market. The individuals and projects who make up the cryptocurrency industry are also involved in the mainstream markets and that makes the both industry interwoven.

I have been noticing that Bitcoin's price has a history of appreciating over time as a result of minor events that are connected to major events (semi-major events). But the most visible event which seems to occur is massive price volatility that often occurs within a day or two. So yes, mainstream event makes Bitcoin's price volatile.

I think what's happening in the world has an effect on the price of Bitcoin, as a recent example is the Iranian crisis which is making Bitcoin prices rise near $ 9,000. With this influence, it indicates that Bitcoin is already considered a mainstream investment and I think this is a good development for the cryptocurrency market.

The cryptocurrency market, in particular Bitcoin is already known by many people not only by large investors. With the increasingly mainstream cryptocurrency market, prospective investors are increasingly convinced that cryptocurrency is not a scam as they have always heard and I think this is an opportunity because cryptocurrency has the opportunity to grow even greater

impossible to be independent, because investors always look at conversion prices.

as well as fundamental factors, bitcoin is also closely related as an alternative asset even though not everyone is aware of it. but behind that crypto still has its own agenda, especially bitcoin, so speculation will remain complex with several different points separate from the mainstream event.

Also shouldn't it depend on the mainstream event? I mean lets say today is my birthday, that is an "event" but 99.999999% of the world doesn't know about it, so would that change the price of bitcoin? I guess not. Iran vs USA war? Would that change bitcoins price?

Maybe, depends on how long it takes and how serious it gets. There is absolutely no way we can collect data big enough to show what actually changes the price of bitcoin and what doesn't, there is no way something like that can be calculated in general, so we just "assume" some mainstream stuff do affect it and some doesn't.

In this example, we know Iran war could change it, and my birthday won't, now those are big marginal obvious examples, lower the Iran war and increase birthday and you got yourself a sweet spot where its just in the cusp of changing or not changing, that level is still unknown.

crypto should not be influenced by the outside world because the stock market is experiencing an increase and crypto is always in conflict with things like that. even today many people assume there is a change in market prices due to the Iran war which is always associated with major events taking place in the world

The cryptocurrency market is connected with people, and people are connected with news that occurs in a centralized world and depending on what is happening in the world, people choose an investment strategy and therefore the cryptocurrency market will always depend on news that occurs in a centralized world until the world will become decentralized

Exactly. The mere fact that crypto has centralized exchanges, links mainstream events to it. Satoshi intended Bitcoin to be decentralized and free from middleman. But all I see is that crypto is becoming more dependent on a third party than anything else. In effect, any mainstream event (either good or bad) has a direct impact on its price. Of course, we already have decentralized solutions for the exchange from one crypto to another without counterparty risk. But, centralization still dominates the crypto space which could turn out to be bad for the longevity of the crypto industry over time.

Since people are mostly into crypto for the money instead of its technology, we see how little events on the mainstream world have a huge impact over a coin's price across the market. Sadly, this has been the way of crypto for a couple of years since inception. There's nothing we can do in our part, since people don't want to use decentralized services for their own benefit. We just have to live with what we have now, and do our best to prevent crypto from becoming too tied to the mainstream world. It's hoped that new developments in the crypto space, would bring positive news that could gather a large number of people into it. This would result in higher demand, which leads to higher prices across the market.

Nonetheless, the recent events of the Iran-American war has brought a slight increase in crypto prices. This means that if there's conflict in the real world, prices of crypto will rise to the moon as people consider them to be a safe haven against traditional Fiat. In the same way, the decline in stock's price allows crypto to increase in price across the market. Which leads me to believe that crypto prices are linked to mainstream events one way or another. Just my thoughts ;D

I do think the price is linked to the events in the world as well.
Take for example when Mtgox got hacked and lost 350M Dollar, it was actually on the news on the television.
People I told about Bitcoin but weren't using it at all where telling me this like I wouldn't know.
I believe this news brought the price even more down then it already was, for a long time.

Maybe a stockmarket crash/bearmarket could increase the price in Crypto as well, lot of people will pull their money out of stocks and are looking to reinvest it again.
And the total chart/price of Bitcoin is connected to the mood/thoughts about Bitcoin over the whole world as well.

Also you can trade Crypto 24/7 a day the market doesn't stop you can pull out when you want to or get in when you want to which gives a certain freedom.

Of course they are definitely connected, not like there is no connection between regular life and crypto world, in the end it is humans that go through all those real life events that end up buying or selling crypto. Just to give an example think of a person who loves crypto and very interested in it, if you give that person a million dollars he will spend it on his regular life things but he will also invest into crypto a bit as well, if you put a person who has a lot of crypto into debt that person will end up selling his crypto to pay his debt off.

So, whatever happens in our lives, we end up putting that into crypto as well, its as simple as that. Hopefully we will not have bad lives and won't be in Iran USA war type of bad stuff but usually end up in good stuff so we can all get a bit more richer.

although cryptocurrency is intended to distance itself from the centralized world but certainly major events in the mainstream world will affect the holders of cryptocurrency. For example the existence of Iran's conflict with the United States made several stock investors shift their assets to bitcoin, of course this pushed the price of bitcoin to rise and the support of the Chinese president for the blockchain also made the price of bitcoin rise.

indeed that is what should have happened and i agree with you, but what is happening now i think the crypto market is no longer independent because manipulation actually makes the market like having a center that makes external relations connected to the crypto market even though sometimes events happen simultaneously or even in the direction the opposite

The people who make up the cryptocurrency industry have no other choice but to be intertwined with the main markets because the people who make up the banking system and corporations cannot help but control the events in the crypto world.

I think that would be a natural thing, because crypto is the second option for the whole world today. the first option is the stock market, gold and other real estate. when the asset drops drastically or because of the issue that makes it rise dramatically, crypto, which is the second stream in the world, will be the second option and it will definitely greatly affect the price of crypto in the market.

Exactly. The main reason why crypto is too tied to events in the mainstream world is centralized dominance in the crypto space. Nearly every cryptocurrency is being traded on centralized exchanges, while decentralized exchanges have a small portion of market share. As long as crypto depends on centralized infrastructure to succeed, real world events will have an impact (either positive or negative) over its price in the long term.

What I've seen is that negative events in the mainstream world (wars, diseases, etc) have a positive effect over crypto's price on the market. I guess that people resort to crypto as a safe haven, the same way they do with Gold or any other precious metal. This is good, because it shows us that crypto is useful for times when the mainstream economy is collapsing. After all, crypto was created after banks collapsed back in 2008. Knowing that mainstream events have a direct link over crypto's price, could allow us to buy/sell at the right time. Hence, the more negative events happen in the mainstream world, the better it'll be for crypto's price across the market. Just my thoughts ;D

For some coins, I think yes, especially the price of BTC, ETH, and other top coins.
Some big events, annual events, or even the mainstream events may give some influence to the condition of the people that hold the events. We are not sure enough. but, we can analyze it often happens that people sell their coins right to head for a special event. Some may think that they really need to sell the coins because they need cash to hold the event.

Additionally, some issues also influence the market. Moreover, there are so many characteristics of people. Some may be worried about every issue that emerges in the crypto world and then being panic to sell or buy immediately.

Indeed and it will really have an effect to cryptocurrency specially when events are about economics or about stock market and also to add it events that is about new technologies which very close to crypto can also have a role on cryptocurrency price movement, the effect may not be immediate but for sure it has so aside from researching and studying price graph you can also look at the events to help you predict future price puml or dump.

That's certainly true, mate. The fact that the crypto market is too centralized, tells us that mainstream events will have a direct impact over a cryptocurrency's price. There's no other way around it. Until crypto becomes completely independent from centralized exchanges, prices will either soar or decline depending on what happens in the real world. At least, we could take this to our advantage for helping us determine when it's the right time to buy/sell a coin.

The cryptocurrency that is mostly tied to mainstream events is Bitcoin. I've seen how events like the Iranian-American war, China's announcement of a CBDC (Central Bank Digital Currency), and Facebook's announcement of the Libra stablecoin have positively impacted the price of the world's largest cryptocurrency by market cap (BTC). Other prominent coins on the market will rise in price alongside Bitcoin as they follow its footsteps. By all means, it's important to keep close attention to mainstream news in order to know when the bull market will take effect.

If by any chance the way we trade crypto becomes completely decentralized (theoretically it's possible nowadays, but adoption is almost non-existent), then mainstream events (either good or bad) won't have an effect over crypto's price across the market. But the way I see crypto is going, tells me that it'll remain too tied to the mainstream world for a very long time. Just my opinion :)

if it is associated with Stablecoin, of course it is very efficient in several ways, including the ups and downs of stable / centralized coin prices, almost similar to the rise in dollar stock prices. but in contrast to decentralized cryptoqurrency, they are not related in large world events, I mean most of altcoin depends on the price of bitcoin, especially on market demand.

Crypto and native stocks are closely related, if anything they are investment solutions and when one moves the other is likely to be affected. If there's a global downturn, it will also impact on crypto as many investors would want to liquid their crypto assets.

Although there are no concrete evidence, I think mainstream events somehow affected the bitcoin price in market like what happen when the US government conduct an auction on the year 2016.
As we all know bitcoin results to a bull run in 2017 that is why many people today are talking about the auction this year by the US again ranging from 4,000+ BTC that is acquired from criminal and  illegal cases.
Maybe these big event can cause a drastic increase to Bitcoin Price again. What do you think?

Yeah, mainstream events does have a huge impact on the price of crypto currencies. Like you said, when Mtgox got hacked, the prices of crypto currencies started to fall. The same thing still happens. Everytime a major exchange faces some problem or gets hacked, the prices starts to plummet. Every time something bad pops up about crypto currencies on the media, the price starts to fall. This is also true of positive events that cause the price to surge back up in price.

That's certainly true, mate. The determining factors of crypto's price are events in the mainstream world. After all, most (if not all) cryptocurrencies are being heavily traded at centralized exchanges worldwide. It is that centralization which makes a direct link from crypto land to the real world. Things would've been completely different if crypto was traded on decentralized exchanges more thoroughly. But I guess that people have become too dependent of centralized services within the mainstream world, that they wouldn't care more or less about the decentralization and censorship-resistance of crypto.

The mere fact that crypto relies on mainstream events to survive, has a lot to say about its independence. That's not how Satoshi intended the Blockchain to be in the first place. Bitcoin and other cryptocurrencies are meant to eliminate the middleman and separate themselves from the real world. Considering how far centralized exchanges have gone, crypto will remain dependent on mainstream events for the foreseeable future. Whenever something bad happens in the mainstream world, people resort to Bitcoin and other cryptocurrencies as a safe-haven to preserve their capital. That's why the Iran-American war has contributed to the increase of Bitcoin's (and crypto's) price across the market.

Nonetheless, time will tell us if crypto will continue to behave this way or not. Everything will depend on how much people are willing to support the decentralization of the space in every way. Without decentralization, crypto will become more dependent on the middleman (centralizing factor) becoming more closely linked to events in the mainstream world. Hopefully, crypto would become independent enough as an alternative financial system that's capable of rivaling the traditional monetary system of today. Just my opinion :)