Bitcoin Forum

HSBC sent an alert that there may be an imminent crash of stockmarket similar to 1987 Black Monday

https://www.rt.com/business/362618-stock-market-severe-fall/

If this happens again, what's everyones opinion on the effects on crypto? Would a bunch of burnt investors jump on board?

These two markets aren't correlated. So in theory, nothing. Nothing happens.

Ideally we'd see wealth move from the weak market (the stock market, people predict weakness is coming) to the strong market (people in bitcoin don't seek the bitcoin market weakening). But this assumes there is already a mechanism for money in the stock market to reach the bitcoin/crypto market. That mechanism doesn't really exist. Most people in the investment world (particularly the every day folks) aren't involved in Bitcoin. They're likely not to quickly jump to Bitcoin because they still don't see it as a viable market to be in.

That could change though if we see a prolonged bear market on Wall Street.

Well, they can jump... if they still have some left. I don't see crypto suddenly booming from a stock market collapse though. Especially if said investors haven't been into cryptos before. It would also require they take their remaining money out of the stock market and transfer that to cryptos, which might not always be easy.

I think there would be some chance of a small jump up the whole situation. Regards.

There wont really be any effect at all knowing that stock market and cryptocurrency world isnt really connected to each other on which i dont even believe that those people who being affected on such stock crash would mind to jump in on a more volatile world of crypto.They would really surely have the doubts and fear to invest and might lose up money even more.

There is no co-relation between these two markets, so technically nothing should happen to bitcoin or crypto market as a whole. Instead we may see a rise in bitcoin market because a lot of worried investors will try to find a separate place to invest or park their liquid money during the time of turbulence. It is just the similar mentality behind the gold price. Whenever there was a market crash, the gold price goes up steadily. Because a lot of investors pull out their funds from the stock market and start buying gold to save their capital investment. So crypto world can also serve as a parking place for withdrawn money in that case. But that's just an assumption. We may or may not see this happening.

Actually I think probably the opposite would happen, if the stock market crashes it will send fear throughout all markets and I suspect we would see a smaller in scale crash in crypto as well.

ICOs are similar stocks in that you're funding the company through investment. I want to say they are more like substitutes in a way -- if you think something is going down in the stock market, go for the ICOs if it looks stable. I don't think one directly affects the other, but they are definitely comparable markets.

If the stock market collapse, I feel a little of the fund would move into Crypto trading, especially the established cryptos

The general idea was that the money "would" move from stocks to crypto. How would they do that though? With the market crashed, all those stocks would be worth little. Would anyone bother buying those so that the money would then be moved to crypto?

I'd say crypto would be able to benefit from it a little. People looking to invest their money somewhere else will only really have a few options, and this is one of the best. Trading cryptocurrencies are also quite similar to trading stocks, so why not?

There are many comparisons drawn between bitcoin and gold. Some go so far as to label bitcoin as "gold 2.0".

It is possible that in the event of a stock market collapse bitcoin will behave similar to gold during past market collapses.

It is also possible that if the stock market crashes investors will look for investments other than stocks which could create a massive influx of bitcoin/crypto investment. This in turn could drive the price of btc, and crypto market caps, higher.

I haven't been following the stock market enough to think of a big crash other than 2008. There haven't been any big crashes that I know of since bitcoin's inception. If there is a crash: we will found out how btc/crypto reacts to stock market collapses.

Just so you all know it is not only HSBC sounding the alarm, everyone in the market is. A crash is imminent.

If you have been in the cryptocurrency space long enough, you will probably remember what happened to the price of bitcoin during the EU financial crisis when things were looking really bad for the EU.

That's how you hedge for the future.

I'm not sure that could happen in an easy way. In the event of a crash, things will happen real fast, as everyone tries to save or hedge their funds. I think they normally use stable assets like gold, and maybe real estate, although I'm not sure real estate can be easily trusted. Bitcoin has a lot of potencial, and it's getting popular, and it keeps being compared to gold, but for institutional money to flow into crypto just like that, the liquidity and the transactions per second would have to be much bigger that what we currently have. Maybe if we already have bitcoin on major stock market exchanges that could happen.

The next crash that comes will tell if Bitcoin is a real safe haven asset or not. Given the amount of publicity that it has received and most people's willingness to use it now - I think it may one day achieve that status.

Eh, no. That report is dated last year.

crypto currencies love unstable air. so when the normal stock market goes down, the crypto money goes up.

Possibly not, it is normal trend that when investors face severe downfall in their stock prices, they turn conservative and keep amount in liquid form rather than shifting it to other investment alternative.
However, prices of stocks depend upon several factors like performance of company, increased number of shares, etc. But prices of cryptocurrencies on other hand largely depends upon the influx/efflux of investors. So there lies a significant possibility that investors may turn to cryptocurrecnies if Stock market faces crisis.

I think it is not just easy for stock markets also to fall. And the market is just wathlist for the comodities if how much was sold or where to sell it. It doesnt really affect how the goods are produced or rather mined. Their are many markets that could use bitcoin and it is not just found in one place. Normally price should go down but i don't think a crash will ruin how bitcoin have helped and grown over the years.

We cant still be sure if those investors would decide to jump on Cryptocurrencies if they would able to suffer such decline on stock market.Maybe there would be stocktraders would make such decision but not fully switch into things that they don't even have any idea on what it is. Knowing stock traders or investors would most likely not to engage into non-regulated things.

let me laugh for a while, if that's the case I can guarantee the investors will buy bitcoin yes there because it is a golden opportunity for investors to buy bitcoin at low prices.

If the normal stock market collapse,  I think before it does happen, the companies listed had already decided to shift into crypto currency and will make the crypomarket even grow larger. We should also take into consideration that the companies listed in the stock market are also eyeing on Bitcoin, since they know it is a good investment, just take a look at Amazon, they are reconsidering to add Bitcoin as their payment, that is to save their company from collapsing, other companies are also doing the same, we might expect a sudden shift from the traditional stock market that uses Fiat to stock market that uses cryptocurrencies, however it may take time for it to happen, since a lot of countries, haven't legalized Bitcoin yet.

Thats not easy to predict at all. But stock- and crypto market arent related. Theoretically nothing should happen.
But there is also the option the capital moving from the extremely volatile and crashing stock market into the also volatile (but not that volatile) crypto market.
On the other hand it also could lead to a drop in crypto market too. But this wouldnt be that likey.
But i dont think there will be such a hard crash like the black friday in the next few years..

It is the new era and a lot of the people are having the benefit of it now, he value and the income of the bitcoin is use because of the simple and the smart transaction and the publically transport, the bitcoin is now being high and the value of the bitcoin will buy the most power and the highest amount of the bitcoin, I love the bitcoin currency and I will wait till the end of the chance for the improvement of the bitcoin value and the price.

First of all, this article and the alert by HSBC are over a year old. The Dow is 5,000 points higher than it was when HSBC was warning about the likelihood of a stock market crash. Even though that doesn't affect the more interesting part of your question, I find it worth pointing out.

More importantly, I see far too many people proclaiming that the stock market crash will boost crypto. This is absurd to me. Crypto is the king of speculative assets, zero inherent value. The only thing propping up the price at this level is widespread optimism that it will be worth more in the future. When the stock market tanks, crypto will tank right along with it, and more likely harder. The reason is the evaporation of economic confidence. When things begin to fall, people aren't going to have the confidence that this inherently worthless digital token is going to be valued higher by someone else in the future than what you bought it for. Stocks have inherent value; each share is worth the liquidation value of the company, which makes them vastly safer than crypto. Stock market crashes are about a flight to safety and reducing risk, so if money is fleeing far safer assets than crypto, logically I would expect money to flee the riskier assets quicker.

Eventally, we will see a large market correction. I'm not at all rooting for it, but I'm confident my thesis will play out as I've described. However hard the S&P falls, bitcoin will fall harder.

Often i have seen something related to the social networks, there was one expression, if you upload something on internet, then it will be there for ever. I think the same goes with digital coin. Of course there will be some movements downfall but it won't disappear. Actually the wealth is just moving from one side to an other, but world wide it's the same amount of money,gold,diamonds or what so ever.

Stock Markets are entirely different,there are many many reasons for it collapse,but in case of crypto currencies,they fall if the price of bitcoin falls,or if some stock market bull wants to play with the markets and predicts something about bitcoin which ultimately leads to ,market crash,less demand of crypto is also a valid reason.
Stock markets crash way more than cryptos and bulls and bears immediately try to make the market stable. Cryptos man,you can trade and carefully and earn so damn much,stocks is like eh for me. Not attractive for me.
There is no relation B/w stocks and cryptos and they don't influence the other. So nothing much is there to worry.

Smart stock market investors will Jump in the btc train i expect a big jump in btc value if the stock market crashes.

Stock market and bitcoin market are different entirely. So, if the stock market is no more, it won't affect the bitcoin market negatively in any way because they don't run contemporaneously.

However, it might expound the bitcoin market because it will then mean more people freed and searching for places to invest on.

The fact is bitcoin started when there was a global economic melt down and that was the right time to introduce a new monetary system which could revolutionize everything and to have a platform where the greedy banking system nor the government could manipulate and in the even of another collapse there is no doubt that traditional investors will start investing in crypto currency and the price would peak without a doubt.

Bitcoin and cryptocurrencies will get some boost, because investors will be looking for new markets, but it's hard to say how big this effect will be. Maybe it will add 10% to Bitcoin's value, or 50%, but I doubt that it would be able to double it. Also, during that time there can be some other events that might overshadow the effect of stock market crash - it might be negative, like Bitcoin getting banned in some major country, or positive - if it's adoption will be growing and development will progress further. It's also possible that Bitcoin won't be affected at all - many people tried to tie Bitcoin's growth to political and economic climate in the world, suggesting that negative events are boosting Bitcoin's price, but usually there's actually no correlation. But we haven't seen a major economic crisis during the time of Bitcoin's existence, so there are many possibilities.

If a crash on stock market happens today while bitcoin is still on this phase then the price of the coin will be affected. We should remember that the coin don't have it's own value yet and it is just depending on the real money's value. Imagine if a number of people who owns a coin is affected by the crash and needs to sell their coin just to recover their loss. It will cause an increase of supply on the market and definitely reduce the number of demand which will cause to a deep on prices.

Thinking the same thing that it could effect with boost in price but think, dont want to speculate on what level but it would be.
But if really stock collapse dont think that it would be time to react in such short time to transfers all to crypto.
Also this may not happen worse case is that bitcoin also collapse if stocks goes down.

This is a really tough question, and the answer would likely depend on how many American investors have put their dough into Bitcoin. When stock markets crash, people run into safe havens, and this case the safe haven is the US dollar. They sell more speculative assets, in this case that would be stocks, and buy less speculative ones, in this case that would be major currencies and gold. Bitcoin is a highly speculative asset on its own, and investors may prefer to dump it too alongside stocks, but we can't say that with certainty.

Hmmm…I normally see some.people say that Bitcoin is part of stock market and once I checked online, some stock markets even started to let their investors trade on Bitcoin. But one thing that made me believe that Bitcoin and other crypto currencies are different is because other stocks like gold are natural resources that are mined from earth, and you know sometimes they can run out, though I’m sure, but Bitcoin is different and offers continuous mining until the 21 million is mined.

If it will happen then we should be taken it in positive ways Because here it is basic and common understanding that if the stock market will collapse and market will go down much then in that case people will.exit that field ( temporary or permanently depending upon loss ). So here full chances are that people will enter in the bitcoin trading market because many types of the altcoins which are available to buy and sell are like the different different companies but here the increase in the rate depends upon the demand only that is possible easily to predict upon the coin's team activity  and also our experience can tell easily that which is better option of the investment .
So here all over the people will get into cryptocurrency field which is similar to stock share market  and this will grow the future of the cryptocurrency .

Could you please tell us more about which stock markets allowed their investors to trade Bitcoin? I've never heard anything about that. As far as I remember the SEC has been rejecting Bitcoin ETF applications so far. Maybe, in some other countries it is different but in the US you can't trade Bitcoin or its derivatives like ETFs and futures at stock exchanges. Also, gold is not stock, you seem to confuse stocks, which are shares of companies taken as whole, with commodities where gold and other natural resources like crude oil belong.

When the stock market collapses Crypto always tends to do really well. The whole system is based on Bitcoin's system and this is the one that will be replacing the current central banking system.

Well the two aren't exactly linked so it depends on the reason for the crash, if it is exclusive to the stock market then it could be very good for crypto as the money may need to flow somewhere.

Nothing will happen to Crypto if stockmarket crashes and i think if it did happen, traders in the stock market will switch to Crypto. I heard of a guy who used to a trader in stock market for 16 years and he switched to Crypto trading in 2010. He made it big in Crypto trading that after a year he retired with all the profits he earned from trading cryptos, his name is Mike Komaransky. One's loss is another's gain.

I don't think it's going to have any effect on bitcoin at all. It's an entirely different market and crypro isn't dependent on anything out of stockmarket so i don't see why crypto would be affected then

It is not just about one trader switching to bitcoin. There are many traders here who continue trading, for example, stocks in addition to trading crypto. To put it differently, those who wanted to trade cryptocurrencies are already doing that. In this manner, I don't think that many of the stock traders would switch to trading coins if the stock market should crash. They will likely switch to debt markets like the US treasuries or currency markets because treasuries and major currencies are less risky assets than stocks.

For now there isn´t a real correlation about this two markets. In fact there is still very little knowledge in traditional stock markets about BTC, blockchain and the whole cryptocurrency environment. When you say a couple of burnt investors will jump, yes a couple will, but not a lot. If the problem persists on the stock market side for some time maybe then we see some influx to BTC and crypto.

If the regular stock market collapses, chances are cryptocurrencies will see a boom as people withdraw their investments into other things such as crypto.

Well in my opinion, as many people are saying that there is no direct correlation between the stockmarket crash and crypto, BUT many big investors could see if the crash is sure to happen and they might go and invest in bitcoin in order to prevent the losses, therefore that might kick the bitcoin price up a little bit but after the dust has settled, there might be a dump when they're selling the bitcoin so it might cause the price to go down a little. Tho, that's all a big "if" situation.

Nothing will happen to bitcoin because bitcoin have already marked history bitcoin have changed many people life. Bitcoin helped many people by investing and trading on bitcoin if normal stock market collapses nothing will happen to crpyto world because in future there will be just one currency power which is bitcoin.

You are investing or you are trading and if you are not going to trade and the money will be more than this because of the investing and the trading, the money is for the increase and the saving so if you are saving and you are not investing then you will have to hold the bitcoin long time, you have to decide firs you want to invest or you want to save only because a lot of the people are investing and they are having the bright future.

If the stock market crashes, people will look for ways on how they can profit with what money they have, if we look back at 2008 when there was a depression, most people are loosing hope in the economy and thus, a year after Bitcoin was born, though there are only few who recognized Bitcoin as currency, still Bitcoin has it's own value back back then, though it started as less than 1 USD. I think that people will then turn cryptocurrencies sepcifically Bitcoin for their finances,  even though Bitcoin will also be hit, because of people cashing out Bitcoin, still bitcoin's value will remain higher than the inflation and will keep going higher and higher, since people who got hit by the fall of the stock market, will make and investment in Bitcoin as well.

As Baron Rothschild, a member and founder of the Rothschild banking family, once said, buy when there's blood in the streets, even if it's your own blood. So if the stock markets plunge, it will be a great chance and opportunity to buy cheap stocks of such companies as Google, IBM, Microsoft and their likes, so-called blue chips. In my personal view, that will be the path the rich investors will take when they will be looking for ways "on how they can profit with what money they have", as you say. I don't think many wealthy investors will be interested in Bitcoin just because of the stock market crash.

bitcoin and cryptocurrencies are decentral markets no way related stock market or else country economic policies they grow individually

well, yeah, i think they will consider to join in, but i guess jumping from one investment to another will be a serious thing for them. this game of investments are too risky to play with, a simple news like this would really affect the stock players, just like traders and owners of bitcoins, a negative speculation would result a drastic trend on the current digital market. if ever this happens, i think there would be an adverse affect on bitcoin and cryptocurrencies as a whole, since stockmarket is one of the basis of economic trends.

When the stock market crashes you typically see people move from traditional assets to alternative assets that hold value while other assets fall. In theory people should move over to bitcoin and altcoins but that doesn't happen for some reason. Its weird that it doesn't but I imagine as people trust crypto more that will start to become a thing. For now, if large swaths of retail and institutional investors did that the price of crypto would shoot up and we the originators would simply sell and make bank leaving the others to lose. The experienced investors know this and won;t go to crypto for that reason until it is more stable.

I know if the stock market takes a huge hit, in turn crypto usually does too. But at the same time, how much can the US affect the crypto market? It is not primarily a US based crypto market. I’d say a small portion is because of the US.

If the US market crashes then crypto space will become bullish. Where else do you put your money? Not the banks. The 2008 market crash gave birth and purpose of crypto existence.

These two markets have different characteristics. The collapse of stocks is not a problem in relation to electronic money. However, the fluctuation of any market is also influenced by many different markets. The collapse of real estate may be the opportunity for electronic money to show its place.

Same like usd news or stockmarket news . if something not relateable for crypto more likely nothing happend tough for crypto .
the most thing i believe maybe cryptomarket will more stable or even will up to make stock market user looking for cryptomarket .

Oh, I do not know if this will happen in the near future. While absolutely no cause for concern I do not see. And if the exchange costs and falls, I can not imagine how this will turn out for us all

They are not directly related but usually a market change affects other markets. Either way if this happens most people will move their money into something else. Or some people think that is the perfect time to buy stocks.

Yes you are right, just like the coinmarketcap, the exchanger with the highest price of bitcoins or other cryptocurrency is always placed as the latest value in general.

One could say that the collapse of stocks would bring more money to cryptocurrencies. People would still want to make money from trading and 100% of those traders wouldn't move to forex, especially when it's much easier to profit from crypto trading.
That said, wwe would have a much greater problem. Since stocks represent companies the death of wall street would mean huge problems for those companies. We'd have a great economic crisis on our heads if the stock market collapsed and people would be stashing food under their beds and not thinking about crypto investments.

All these burnt investors will turn to T bills or gold. When the stock market collapses, risk aversion takes hold. People tend to sell risky assets and cryptocurrencies are definitely considered risky assets. So don’t be surprised if an equity crash is followed by a crypto crash.

Exactly, crypto is the king of speculative assets, zero inherent value. When the stock market tanks, crypto will tank right along with it, and more likely harder. The reason is the evaporation of economic confidence. When things begin to fall, people aren't going to have the confidence that this inherently worthless digital token is going to be valued higher by someone else in the future than what you bought it for. Stocks have inherent value; each share is worth the liquidation value of the company, which makes them vastly safer than crypto. Stock market crashes are about a flight to safety and reducing risk, so if money is fleeing far safer assets than crypto, logically I would expect money to flee the riskier assets quicker. That means away from crypto.

In my opinion, right now many investment manager diversified their investment to cryptocurrency. I am believe when stocks market collapse, most investor looking to cryptocurrency because market cap value in crypto still low

Yes, when the stock market crashes, they would find a way to secure their assets and most likely they would go back to the one they are most comfortable with which is gold. Although there is a possibility that they would shift their investments and put it in cryptocurrency instead, they may think that it might be the same as stocks as it is still a speculative market so instead of cryptocurrency having the advantage, it would still be affected with the crash.


Many are expecting about the impending crash of the stock market this year due to the cycle which is ten years from 2008. Even banks are having a hard time retaining their employees and if that happens then most likely, cryptocurrency market would crash as well and people would just buy gold because they know that it always has value and more uses unlike cryptocurrency in which majority of it are just existing for trading purposes.

positive thinking, don't always think negatively, because if you dare to enter the world of commerce, the way of thinking must be changed where there is damage there must be a development, and cryptocurrency can all happen, if the stock market falls the thing we have to do is anticipating before that happens

we can make early warnings and immediately save assets, rest assured that if there is a decrease there will be an increase, when we go down we can buy and if high prices we can sell and always act calmly, do not act stupid.

Cyrpto stock market has been unstable for quite sometime. There are months that the market is down but definitely there are also months where it increases. We always have to wsit for it and when it does happen we should invest and buy im some coins.

What do you mean by the cryptocurrency under the global financial crisis? This is not certain that perhaps the cryptocurrency skyrocketing may also lead to the global financial crisis, and there are now many uncertainties.

I think this will be fine, the investors will only wait until the time comes. because of the growing crypto, everything will be fine. it is very reasonable if this unstable price occurs, but I am sure that in the future some will be even better

You seem to be familiar with stock and other markets, and yet it sounds rather strange that you call crypto the king of speculative assets. There are a lot of speculative instruments which have "zero inherent value" as well, like cash-settled futures, options, indexes, and whatnot, which are by far more speculative than crypto, especially if we use volatility as a metric measuring the speculative nature of an asset. Personally, I wouldn't even call a volatility index an asset even though you can earn piles of cash with it (as well as lose as much, for that matter).

Anyway, previously I also thought that a stock market crash would take crypto along with it. Now I'm not so sure after we have seen so dramatic fall of cryptocurrencies all on their own. It looks more like crypto is living its own life nowadays and not as much dependent on or linked to the stock market or any other market out there. Obviously, it is not like gold, which is "contrarian" (you know what I mean), but the "independence" level of crypto is quite on par with it these days.

Stock market collapsing may not be good for the country and the investors as well. I am not sure the people who invested in stock market will join the crypto world though. If stocks collapsed then its investors may have a hard time coming back up. What do you think?

The correlation is not strong at the current stage if you are comparing with the stock market in US.

 My opinion on the above topic is Crypto Currency is very different structure compared to the stock market with solid investment, it won be affdcted by the crash instead it would benifit from the possible crash. Invedtors often shift their investment to save or protect from a huge losses in the market.

if the stock market collapses, it might be a Crypto revival, because the stock market is very dependent on fiat currencies, whose value changes according to the conditions of each country, if a crisis occurs, what happens is hyper infiltration, helping the world economy is bitcoin, because bitcoin will not be affected by the condition of any country, and bitcoin is global, this can be a very good alternative for the business world.

I think cryptocurrency will also be affected negatively, if the stock market will crash then I think cryptocurrencies will drop its value as well. If crypto currency will maintain its value then I think everyone will jump into cryptocurrency and that would be a great thing for us crypto users.

If the stock market suffer a crash, many investors mjght stay away from the market for the mean time and they wait for the recovery. Cryptocurrencies are not connected to stock market so any effects will be minimal. Some of the investors might even take a break from the stock market and they instead buy some cryptocurrencies. If the crypto market is bullish, it may attract many investors from the losing stock market.