Bitcoin Forum

Economy => Economics => Topic started by: mullenmanBTC on February 05, 2018, 04:15:05 PM



Title: Are the crypto and financial markets tied?
Post by: mullenmanBTC on February 05, 2018, 04:15:05 PM
I know many people like to view crypto as alternative investment to the financial market, but it's hard not to notice the mirroring trends. The crypto market goes on an all time bull run in unison with the stock market. Now as the stock market begins to tumble so too does crypto. In the future we envision crypto to be independent of the centralized markets, but in the present what do you think is causing this trend ??


Title: Re: Are the crypto and financial markets tied?
Post by: Hydrogen on February 05, 2018, 04:58:15 PM
Every once in awhile... Alex Jones and InfoWars do a story on wealthy demographics constructing safehouses or bunkers in rural areas to take shelter in after civilization collapses. There are many wealthy CEO's and executives who have helicopters and other measures in place as part of a rapid response scheme. The only thing that comes to mind is, the wealthy are selling all their crypto and stocks and preparing for a big crash. I hate to be doom and gloom but that's the only thing I can think of. People are calling a bear market and selling while they can.

Bitcoin's price decline appears to be market manipulation and a media smear campaign revolving around tether/USDT. For the stock market to drop that much however, in the face of decent economic metrics, could imply things are worse than we think.


Title: Re: Are the crypto and financial markets tied?
Post by: renes on February 05, 2018, 05:01:57 PM
I think they are not totally related but if big markets crash, crypto will follow them. I think this year will be a bear market also for stock markets like in crypto.


Title: Re: Are the crypto and financial markets tied?
Post by: trecore4 on February 05, 2018, 05:20:34 PM
I know many people like to view crypto as alternative investment to the financial market, but it's hard not to notice the mirroring trends. The crypto market goes on an all time bull run in unison with the stock market. Now as the stock market begins to tumble so too does crypto. In the future we envision crypto to be independent of the centralized markets, but in the present what do you think is causing this trend ??

The crypto and financial market is only connected with one bridge and that's bridge of fiat investment. There is nothing else which connects both of them in reality. There is only bidirectional conversion going on where fiat is invested heavily into crypto market and it gets its market capitalisation in that way while when mass selling occurs then it is converted back to fiat currency and thus vice versa process.

I believe there is no real role of financial market as such because neither of the real world commodities impact the presence of crypt currencies not crypto do the same for the financial market. If in any case the centralised and decentralised market got hybrids of each other then there might be a link but we are not sure at all. For now both of them stays unique.


Title: Re: Are the crypto and financial markets tied?
Post by: DesmondHayes on February 05, 2018, 05:54:04 PM
They are tied in terms of the investment. Current status for both of these markets is shaken. People are often misled by the false beliefs that the stock market will pull the crypto market to the demise if it starts to fall.

The real truth is that the stock market if it is destined to vanish, will make new opportunities for the stock investors which will invest in the crypto( safe paradise). Crypto market is currently very unbalanced and correction phase is still in progress but I believe that the future for the crypto market will be for sure prosper for its investors.

Stock( financial market) won't withstand very long and when the fall starts all the stock investors will be meritorious for the crypt growth. Their investment will stabilize the future of the cryptocurrencies.


Title: Re: Are the crypto and financial markets tied?
Post by: gordeevaar on February 05, 2018, 06:36:42 PM
I know many people like to view crypto as alternative investment to the financial market, but it's hard not to notice the mirroring trends. The crypto market goes on an all time bull run in unison with the stock market. Now as the stock market begins to tumble so too does crypto. In the future we envision crypto to be independent of the centralized markets, but in the present what do you think is causing this trend ??

They work on same basic principle- human emotions. But they do not affect each other much in my opinion.


Title: Re: Are the crypto and financial markets tied?
Post by: mullenmanBTC on February 05, 2018, 07:07:45 PM
They are tied in terms of the investment. Current status for both of these markets is shaken. People are often misled by the false beliefs that the stock market will pull the crypto market to the demise if it starts to fall.

The real truth is that the stock market if it is destined to vanish, will make new opportunities for the stock investors which will invest in the crypto( safe paradise). Crypto market is currently very unbalanced and correction phase is still in progress but I believe that the future for the crypto market will be for sure prosper for its investors.

Stock( financial market) won't withstand very long and when the fall starts all the stock investors will be meritorious for the crypt growth. Their investment will stabilize the future of the cryptocurrencies.

I agree that long-term we could see a separation where a stock market crash leads to a bullish crpyto market. But you have to think that is 5-10+ years away no? Even if we're thinking over the next 3-5 years we should still operate under the assumption that a downtrend in the stock market affects the crypto market directly?


Title: Re: Are the crypto and financial markets tied?
Post by: juicyjanet88 on February 05, 2018, 07:56:52 PM
I disagree with everyone saying that the financial markets and the crypto markets will move in opposite directions. If the Financial markets (stocks, forex etc) crash then this will be in concurrence with a global recession. In this times saving increases and investment decreases as disposable income decreases and people look to weather the storm, that's simple economics. If the Financial markets fall, Crypto will suffer also, as at the end of the day it is investment just the same.