Bitcoin Forum

As of today (26th January, 2020) stock market seems to be taking a huge hit.

Here are the standings of biggest indexes:

Dow Jones: -$840 (-2,90%)
S&P 500: -$94,49 (-2,83%)
NASDAQ: -$327,28 (-3,42%)

https://i.imgur.com/EXiDfyl.png

In correlation to the stock market, Bitcoin also followed with -$251,40 (-2,52%)

https://i.imgur.com/V5Qo4xJ.png

The fact that Warren Buffett once again talked negative towards cryptocurrencies and Bitcoin could be the reason for people to sell out of fear.
Here is the video: https://www.youtube.com/watch?v=d6yqrwOZVjY


Is the stock market heading to a crash and recession?
Will Bitcoin follow?

I don't think BTC would crash in a recession, but it's just my thoughts and I may be wrong as well. Do people really invest based on Buffett's words? I haven't heard anyone follow his thoughts yet. He's a boomer & Bitcoin is worthless to him because he's most likely used to investing in tangible stuff and stocks.

Bitcoin is going through weird movements at the moment imo. We need more time and meanwhile its path will be paved.

A market crash/recession is definitely going to be interesting(though I definitely would wish this upon everyone for obvious reasons) concerning bitcoin's valuation because bitcoin hasn't existed yet when the 2007 recession started hence we really can only speculate for now.

There are two sides here:

• The bull: Bitcoin will rise in price because people will be moving money to safe haven assets.

and..

• The bear: Bitcoin will crash because people will be selling their bitcoin for them to be able to afford daily needs(food, sanitation, etc).

Personally, I'm for the latter because it's likely going to be the case. I don't much people think of bitcoin as a "safe haven" asset as of yet. But then again, we're just guessing.

I would be absolutely astounded if Bitcoin did well during a full on meltdown. It is a safe haven to some people, perhaps 1-10% of Bitcoin fans. Everyone else would be running for exits with their panties on fire.

Pretty much. Heck, I'd even be surprised if bitcoin stayed stable in USD price if such event occurs. It's pretty safe to assume that the people who actually owns bitcoin as a store-of-value is a small minority; most are still speculative investors that would dump their coins once bitcoin drops a significant percentage.

We are moving into uncharted waters right now. We have never had negative interest rates, or such an overvalued stock market. Fiat currencies always revert to their true value of zero, and this will happen, but it is difficult to know when. There is an increasing awareness of the current problems, and that is leading to an increase in the vale of gold, silver and gold mining shares. I'm a bit surprised that Bitcoin hasn't gone up as well, but then many people can't understand that virtual assets can have a real value. The over-hyped Corona Virus scare is being built into the black swan event that the Deep State wants to accumulate more real assets, and to sump their toxic debt.

It is difficult to know how this will affect Bitcoin. We know that the bankers and the elite are collecting Bitcoin for investment, and we know they will be releasing their own version of cryptos. I think that this will increase the scarcity of Bitcoin, and also build demand due to increased awareness. It is difficult to know when this will happen, and there will probably be some further drops in price as the influencers increase their holdings. It looks as if it will be a great time for scalping. :)

Therefore the question is - will they sell whole portfolio at once in the worst case scenario, or slowly in small parts. If the latter, and without panic selling off, we should rather not worry.

Yeh we dont know if this a good time to be having Coronavirus and/or stock crashes.
Printing money and raising the debt ceiling is such a crazy thing and more of a culprit rather than Coronavirus.
Lets see how Gold prices and Bitcoin pan out?
Lets see how BTCHalving is affected ?

To the majority Bitcoin is an investment, just like stocks and comodities and when the stock market crashes so will the other markets, lincluding forex and housing. It's all connected and Bitcoin will show its true colours after a while, when those who exited the stock market will look for an alternative that can bounce back faster and harder than stocks.
If the crash continues I expect Bitcoin to follow at first, but then be the first to bounce back. The halving brings a lot of fresh air and positive thoughts into this market and I bet it's going to outperform stocks and gold once again.

This assumes that majority of bitcoin investors are rather poor retail investors with no other assets or fiat savings, and I doubt that this is true - some portion of coins is held by whales, and many investors are likely belong to middle class and wouldn't need to dump their coins in case of a recession.

I think the bearish scenario is possible, but under some other mechanism. Maybe Bitcoin just isn't a good safe haven for such scenarios because of its volatility, so money will be moved to assets like gold.

^^^
Look at the timing of your post and mine. I had to be first by a tenth of a second here. That's definitely a rare case.


Historically, gold wasn't doing that good. When people escape from investments and a panic spreads it's rather "let's take out all of our money and hide it under the bed" attitude that prevails. People turn off thinking for a while and it takes time before they start investing again. It's not like they're selling stocks and immediately buying gold. They're afraid how other markets might react and want to sit and wait to see which ones will or will not be affected.

Nice catch.
Definitely worthy of a Topic somewhere :)
https://i.imgur.com/09UK08n.png

But he talked negative about alot of other technology based stocks inwhich he will never own any in his portfolio. So dont expect him to start shilling on those either to pump his bags full. :-\
Here is the full interview to see what he has to say about them:
https://www.youtube.com/watch?v=JvEas_zZ4fM
A two hours long interview from 89 year old money man. ::)

We can already see the results since bitcoin's price has already dropped to $8800 from $10200.
We can't call it a recession but the crash in stock market has made the crypto market panic and people are selling their cryptocurrencies.
Altcoins are taking the biggest hit since they are decreasing in price in terms of BTC which is further more decreasing their USD price.

Well perhaps, the only reason bitcoin will get to a recession and be affected with the stock market's current bear is when investors panic towards it. In my opinion, --I don't actually see any valid reasons for these red numbers to affect the Bitcoin. In the case of the economic crash, the Bitcoin would most likely increase as the people would move their assets into Bitcoin to keep their wealth. So there is no point for the Bitcoin to go down with the effect of the global public stock markets. Indeed, Halving was the thing that made Bitcoin rise again and perhaps, halving is the thing we need to monitor. Not the global stocks exchanges.

You're right, especially since so many gold investors never own it physically and it's just another number inside a centralized database. Still, there's no difference for Bitcoin if people move their money to gold or cash, if its perceived as unjustifiable risk at times of a crisis, it will get dumped. So, the question is, how would hodlers act - are they bitcoiners first or traders/speculators first?

At the moment, the cryptocurrency market is very “dipped”. It seems to me that someone with a large number of tokens is manipulating of the market.

I will not believe that Warren Buffett could be an occasion for people to sell cryptocurrencies. His opinion is not very influential in the cryptocurrency market. The recession was foretold for a long time however I do not think that the market will not be able to recover

I think it's no big deal. The stock market is down about 3%, is it a significant event? While I do believe that at some point in 2020 the stock market will suffer a huge loss due to another world economic crisis, now it is still early to say when it is going to happen and what will trigger it. As for Bitcoin, it's down 6%, and it's probably because of the FUD that emerges when people like Buffett decide to publicly undermine Bitcoin... As for the reaction of Bitcoin in case the stock market goes down, I think Bitcoin might go down with everything else for a while, but it will win from this situation in the long run as it could be a way for investors to save the remnants of their wealth.

This is now where the speculators will think that bitcoin and the stocks are correlated.

Bitcoin is following somehow the trend of the traditional market but as we know, the behaviour of bitcoin is much better than them at least for other kind of risk takers. The bouncing will be quicker than the traditional stocks because of its volatility.

It would be amazing to see that bitcoin is getting back quickly while the stocks is on slow-paced recovery.

Stock market is collapsing, and bitcoin is dumping so by this coincidence we can say that bitcoin and stocks are
Moving on the same path. The Covid 19 affects many market and mostly in China and maybe this is the reason why the stocks are dumping or the recession is coming. Bitcoin is below $9k again, a sad scenario again but take this as an opportunity to buy bitcoin again, don’t miss this one.

While the BTC market isn't completely detached from the stocks market, it still has a high level of independence and autonomy. The real reason for the market crush is one no one can tell for sure but speculations such as negative press review exist.

In my opinion, I see this as an opportunity created by a few whales or investors as such to allow more entry to the market before following on the much speculated upward trend. Following this basis, this should in theory lay the grounds for the new up trend, so everybody remain calm and optimistic.

Perhaps now is the time to buy  :)

I think it would only affect the crypto market if those who choose to sell their stocks invest it in crypto.
But other than that there wouldn't be any connection between crypto market and the stock market.
The only thing that they are similar is about the stocks and demand nothing more and this is only my opinion.

Tomorrow the entire market will be rebounding. Trust me.

I’ll reply to this thread with a huge coin map of everything pumping.

or a downward spiral with btc dropping under 7k

Pretty obvious that stock prices are the reason with the cryptocurrency downfall. Stocks are being hampered which most investors cause panic selling. That's a huge surge if you asked me. Many investors are likely drop dead with this loss. As for holders, might wanna hang tight since its not over yet. You will not lose until you sell it.
Wow thats a reassuring feedback. What are you clairvoyance? I dont think market will be instantly go back to highest trade within a day.

There is no relation between stock market crash and Cryptocurrency market downfall. They both are completely different markets. Bitcoin is following the same patter of 2016. You can expect it to again pump by end of this month.

Do not expect huge rally from Bitcoin this year.

I don't know how high 3% is but as of now, Bitcoin price is sitting at $8,500 which is more or less 10% lost since the start of this month so I think stock market and cryptocurrency is kind of related. Maybe the investors are trying to panic sell? and because of that, they are trying to get their profit in cryptocurrency too to avoid more lost. We might have to see some downs in the coming days if this gets out of hand though I don't think it will be that bad.

it seems like bitcoin is finally seeing some heat from all the drama that has been going on for the past week or so and the push down finally succeeded to pull the price down to $8k levels but i'm not sure it has anything to do with what has been going on in other markets such as stock market with their crashes specially since that crash makes sense since many of the companies rely on China for their products and a lot more but bitcoin has no relationship with China that could be affected because of the ongoing issues with Corona virus .

I wouldn't go so far as to saying that bitcoin is directly related to stock markets and traditional markets in any way. I see this as yet another market movement coinciding with the events of the traditional markets. You might view it as some form of panic sell on the side of different markets due to a number of different reasons, but not that it was caused by a single event.

It has happened before and it's not far from happening again. Note that while the stock market is on the plateau, bitcoin was making moves just a month before

The crash has just started... Global economy has taken a major hit due to the Corona Virus and there is going to be a major correction as far as the stock markets are concerned. The last time we had a recession was in 2008. I won't be much surprised if we end up with another one as a result of this outbreak. Let's hope that the largest economy (United States) remains immune to Corona.

First of all, that decline in the stock market wasn't exactly a big crash.  If it continues to decline over a period of a month or longer, then I'd say it might be in trouble.  But the thing is that stocks have been in a bull market since about 2009 when the Dow hit something like 6000 and then started to rebound--and it's been going up more or less ever since then.  You've got to expect corrections in a market like that, because prices just don't keep going up in a straight line forever.

And I don't think Buffett's comments about bitcoin are the reason it's taken a hit.  Investors/traders are probably just cashing out their profits and waiting for the next big opportunity.  Since bitcoin is still hovering around $9k, I'm not sweating it.  That's way higher than where it was at in the beginning of 2019, so we're actually doing pretty well.

This only matters on its behavior with respect to ongoing trend which also coincides on how stock market went through. Bitcoin has its independent flow which can't be predicted compared to fiat trading stocks. That only depends on how each investors will mange to handle their asset whether they choose crypto over stock market. These discreet whales is now playing more frequent compared from last two years that we've experienced certain outbreaks.

Indeed. Some are happy that the price of btc go down since they can have a very low entry point. I heard that this will be the last dive prior to bull effect but Im not yet sure about that. Stock market down everywhere but compared to btc market it will be too long for them to recover unlike the crypto market which is highly fast in terms of movement. Buying some at 8k flat if its going there.


Provided their difference. How come you say the pattern of 2016 is the path bitcoin going right now? One day, before this month end and seems it will not pump again for now.

I think there are a lot of misconceptions about the whole Coronavirus < also called, Covid-19> and now with the first case being reported in the US, markets are over reacting to it. They saw what the impact of the Coronavirus was on the Chinese economy and they want to run to safe havens before that might happen in the USA.

Now, even though some people seem to believe that Bitcoin is somehow a good safe haven, many institutional investors cannot invest in that, because their wealth is caught within a highly regulated financial system that has very little exposure to platforms where bitcoins can be traded. < These investors will run to traditional safe havens like Gold and Silver ....>

The people with wealth that are not locked into regulated markets, will probably shift some funds into Crypto currencies, but with high volatility in Crypto currencies like Bitcoin, they would perceive Crypto currencies as a high risk investment and they will only have a limited investment into that.  :P

i don't think the stock market drops had anything to do with the infection cases in US. it actually makes a lot of sense when you think about how some of the US companies rely on China and the trade with them and since China is basically closed down and the trades are becoming harder or in some cases are halted, it is reasonable to see the value of the stocks of these companies decline. obviously that could cause more panic and more dumps.
this is also why i believe that bitcoin price is not affected by the Coronavirus at all since there is no relationship like the one in stock market.

I am sure there is something that causes the down of the stocks, but unfortunately, we don't know what it is. I don't think that the stock will head to a crash because the stock will survive, but if there is a worse thing that happens in many countries, then yes, the stock will be a crash. We don't know if bitcoin will follow because bitcoin and stock are not the same, but it could get the impact from the stock since if the stock crash, people will search the other thing that can give them money. And bitcoin will be the next choice for them to make money.

As far as I know there isn't direct connection between stock market and Bitcoin or cryptocurrencies in general. So, to my opinion anything that happens on the stock market for worse or for best shouldn't influence Bitcoin price.
Maybe there will be some investors that would change their preferences  because of stock market crash and therefore they would be more oriented on cryptocurrencies market but then again that will not be some significant number that might be too.important.

But they now have a large number of coins owned by the same people. And those people are not going to hang on to their wild bet if their bread and butter starts to take a shit that looks like it's going to be properly significant.

Let's see whether conventional markets manage to shake things off in the coming weeks and rebound. If not then it's time to chuck our usual predictions out the window. Crypto has enjoyed almost total consistency from the wider markets since it emerged. If that is turned on its head then the uncertainty will be amped up big time.