Bitcoin Forum

Why do people think that a stock market crash will cause a surge in Bitcoin price? I have heard it both ways and I would like to hear the logic behind the reasoning.

Thank you.

I've wondered the same and will look forward to seeing some answers.
One of thoughts I had is it could be people that keep money in their 401ks that are affected by the market could pull it out and put it into bitcoin? That seems like a longshot though since they would have to pay the penalties to withdraw, and bitcoin is not guaranteed to go up.
Or could it be the idea of a market crash could severely hurt the value of the US dollar so people will move to bitcoin?

I think the reasoning is that if the market crashes, then people will be more likely to put their money in bitcoin.  But who knows, anything can happen.

Recently market crash and bitcoin also crash. I didn't notice any btc price surge during market crash. During markets crash people try to put their money in save havens like gold but not in btc. Because btc is not still considered as a established commodity or currency.  

Of course Stock Market Crash =\= Bitcoin Surge, why would somebody believe BITCOIN will surge if the stock market crashes.


For bitcoin to surge, its the fiat currency that has to crash. For example when you will see bank bail-ins, and tripling food prices, then you will see bitcoin go to the moon.

But before that I highly doubt it, the stock market pump is just made with printed money, and mostly the top 10% elite that is playing there, while bitcoin is the currency for the 90%.

of course, the scarcity of stocks will increase the offer
price. I think, this is the general rule in all the theories
of markets, including trade bitcoin

I believe that the result will be just the opposite. In case of a major stock market crash, the investors are likely to divert their investment to the less riskier options, such as bullion (gold, platinum, silver.etc) and government treasury bonds. In my opinion, the Bitcoin exchange rate will collapse in case of a stock market crash.

yes, in fact a lot of times I wonder that bitcoin too in itself is an altered and improvised version of a share investment, we see volatility in price of shares similarly to bitcoin, profits and losses are addressed exactly the same way and even taxed similarly. However, bitcoin along with the block chain technology is an offering of a complete economic evolution idea, the big picture. Oh, the dreams.

That is correct. We already did see glimpses of this in the past couple of weeks. Both stock markets and bitcoin are down.
This is the 'flight to safety' effect as they call it. Risk appetite of investors comes down and they seek out safe assets.

Though there is not a direct Impact of value but yet there is some indirect evaluation behind it.
We measure the value of Bitcoins in terms of $ or Euro Value , the more the the value of Bitcoin appreciates the better it is for us.

The Stocks has direct impact on the value of USD or Euro , as market crash the value changes , which in turn affect the bitcoin.

When the stock market crashes the currency gains value in terms of other currencies and vs the stock market.

However in terms of real prices, when a bubble crashes, then the inflation gets out of Aladin's lamp, and flushing into the economy, raising prices everywhere.

When this happen, people are panicking, and are looking for a better currency, this is when bitcoin comes into play!

https://ip.bitcointalk.org/?u=http%3A%2F%2Fi62.tinypic.com%2F1zq5vn8.png&t=555&c=cZzurjQ84QiV1Q

People are always looking for reason for btc price rise.Market crash will not rise btc price,it can be used and marketed for quick btc pump

Well knowing from history, the stock market has no logic.

IT can fail for no reason, and it has little to deal with people who actually trade, but more on the companies that like the banks choose when to buy back or raise funds buying selling theirs.

It can be manipulated so however the stock market is, its only a temporary state.

its all depend on the use of bitcoin all around the world

Nice analogy.

Still, without a bull market to speculate on, we won't see large buy-ins in an economy where people are frightened to invest at all.

I have a theory. Many, or even a majority of Bitcoin users are anti government, anti control and freedom supporters. Many Bitcoin users even believe that Bitcoin will replace the current financial system (I am not one of those and I believe that Bitcoin and current financial system can coexist).

Many also believe that there will be another big financial crisis before the end of the decade (I actually believe in this as well). So if you connect the dots, every time current financial system turns out south, people believe that the Bitcoin should head up north, since we need something to replace a falling house of cards.

I don't think it will. The only way bitcoin is ever effected is when people panic buy because of something, but can't see why they'd decied to panic buy bitcoins if the stock market crashes.

Bitcoin is treated more as an asset than a currency because of the small number of firms accepting it as payment. The stock market crash causes the strength of the dollar to drop and so people buy bitcoins as a safe place to put there dollars since they for see the dollar losing considerable value in the future. Same way people also can buy other commodities like gold or other metals to safe guard their money during markets crash.

Stock market crash means the value of the dollar goes up as people are dumping stock and holding dollar.

Stock market crash can easily cause BTC to rise since there's lots of people that made money on the run up bubble, now they have to try and diversify that stock gain into something else besides stocks that isn't in free fall.  Fiat USD can implode just as easily, so it's not that attractive to stuff a suitcase of cash under the mattress.  There's not many places for that money to go besides real world commodities like oil, gold, land, etc.

Oil is a rigged market that isn't that safe.  Land you have to pay property taxes on, so you can be losing money there.  Whoever is buying gold is probably also doing some consideration of things like BTC.  Whatever helps gold fundamentals usually helps BTC too, but BTC isn't necessarily affected by negative things for gold.

I mean it's pretty common sense.  If I just doubled my money in a stock bubble and now it's crashing, you're gonna be creating a bull market somewhere outside of stocks as you try to preserve wealth.

Because, if a stock market crash happens USD will be affected and since BTC is tied to USD  Bitcoin would lose value. But its all poor speculation by economists.

I feel like the timing of the stock market crash was quite unfortunate for bitcoin. It just happened that bitcoin was moving into a bear market because of the divide in the community, right when the stocks started to dive. It has nothing to do with the stock markets crashing. Bitcoins trading and stock trading both are completely different so do not link together for any reason. If we would still have been in a bitcoin bull market, I'm pretty sure the stock market collapse would have boosted bitcoin coin prices further.

Bitcoin is totally independent of any stock markets so even though markets crash it actually should help bitcoin prices to move up technically.

why does that not happen then? Scared investors or big whales dominating the market to cause certain drama, create certain situations or some other third world dude profiting from it? If bitcoin price rises, it benefits the people who have invested their money in bitcoin, but then why do whales create crashes if their funds are increasing in value? Who profits if bitcoin loses value? (except banks lol)

People will always invest until they are shackled or dead.

The question is where will the printed money go?

Buying up stocks/bonds & their derivatives so that the rich speculator gets richer?

Or buying up corn or other cereals so that the poor starves to death as all bread and bakery items will be ultra expensive?