Bitcoin Forum

I was thinking that investors would think the cryptocurrency market as an alternative to traditional investment products.
Having said that, my point was that those two markets have a reverse impact.

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.
The last days stock market crash seems that lead the market cap of the crypto market down.

Does the Stock Market has impact over the Bitcoin price?

I think the crash of the stock market will make investors buy bitcoin and trade it. I am currently in talks with my fund manager to sell off my mutual fund so I can invest the same in bitcoin. Bitcoin will appear to be a safe haven and this is expected to bring more liquidity to the market.

I think they will prefer buying gold to bitcoin since gold is a more secured collateral when stock market crashed, but, who knows ?!? :)

IMHO all altcoins are extremely cheap at this moment, you can buy, hold and wait for the market be more positive. Don't do day trade at this sensitive moment

It's true that people will be start looking for alternatives if a traditional stock market goes down, but they are mostly unlikely to come to crypto market. The reason is simple, when an investor looks for capital protection, they would look for a safer avenue of investment and cryptos are not considered safer by many because of its volatile nature! So an investors will turn to precious metal market and the trend is evident! I already posted a chart in another thread which is given below,

https://i.imgur.com/L8Vyr1R.png

The trend is pretty clear as you can see the gold price is steadily increasing due to the slowdown in the traditional stock market. These investments are least likely to flow to crypto market in any way!  

It have not crashed yet, the indexes did have a downfall recently, yes! But it is holding its ground not that bad, the crash will be then when all of the globe will feel it, you will feel it with your salary.

In theory, it should impacts crypto in positive way but the last time we had bigger crash in stocks, crypto went down as well.

Somehow i think that those that are into stocks would rather buy gold, as it is more stable and safer, but some of that money would get into BTC as well.

People should also have currencies in mind as well as stock markets. Lots of currency ratios are looking seriously skewed and perilous. That's potentially a bigger deal for BTC than stocks.

All the same if everything crashes I really cannot see crypto doing well. Ten or more years down the line there would be a greater chance of it but for now it's still a weird little plaything that'll be the first thing people drop if they start hurting properly.

I have the same feeling as well. If investors can find profits in the stock market they will move towards the crypto market.
But as they stock market drops and we see the same direction to be followed by the cryptocurrency market, it seems like those two market are positively associated.

Both seems to be different from one another in various factors, and stocks can be predicted with relation to the growth taking place with the world market. With Cryptocurrency this isn't possible, and I see Cryptocurrencies to be independent from the world market which makes it unpredictable. Earlier when stock market was in the peak Bitcoin has grown high,and when stock market was down Bitcoin has reached peak. This way I believe stock market crash won't affect Bitcoin. Maybe this would change after years as bitcoin needs to mature more compared to the stock market.

Bitcoin market doesn't care with Stocks,Indices,Forex Markets.They might have a crash or any other issues but it wont really correlate on Bitcoins price.

There might be some possibilities of those money would flow through crypto but not still an assurance thing that it would be done.

Bitcoin might even increase as stock traders might find crypto a safe haven, but even in the past, stocks has no significant relation on crypto market movement, it's really different market here and it's more risk here since market is more unpredictable and when it comes to market manipulation, there's a high percentage that whales can dictate the price movement through their power to manipulate the price.

I can see two possible scenarios here:

1. When bitcoin is having a good year, stock market follow, i.e. 2017's peak of bitcoin.
2. When bitcoin suddenly went into a bearish trend in 2018, the same thing happen to stock market as well.

So it's really hard to see if traditional investors are more willing to move their funds across a non-traditional assets like bitcoin. Definitely we wanted them to test out bitcoin as a leverage sometime specially if stock market really plummets this year. However, its a case-to-case basis unless some entities really acknowledge their shift to non-traditional assets.

I don't think it will have much of an effect. The stock market seems to not have much correlation to the bitcoin price. I think it is better to compare bitcoin to gold, I do think that more people will sell their gold and convert their money into bitcoin as a store of value.

Same institutions, same allocations. Bitcoin is a risk-on asset, even more so than all the flashy tech stocks that go through a heck of a lot volatility.

Debt flowing into the stock market means debt flowing into Bitcoin, though the amounts flowing into Bitcoin are obviously just a fraction of that. If stocks take a dive, you can bet your left sock that Bitcoin will be sold down too. The effect of this might not have been as strong back in the days as it is right now, but that's just because there is more institutional presence now and their positions in Bitcoin have increased too.

But then again, Bitcoin is so unpredictable that it could just as easily go up when stocks go down, without there being an actual outflow of stock market capital to Bitcoin. That's the beauty of Bitcoin. Assuming that something is going to happen based on what happened in the past can get you rekkt hard.

If the stock market crash, investors will turn to invest in more profitable places like Bitcoin. Gold is also a good alternative for investors if they want to avoid high volatile investments. We must realize that it is indeed the nature of Bitcoin that makes investors afraid to invest their money into this currency.

Most investors try to save their money during crash, instead of looking for new opportunities - they don't want to risk more, they want to minimize the loss. And Bitcoin is a horrible way to preserve money with its volatility, you can lose 10-20% of your value in one day, something that looks just catastrophic in traditional assets. I believe the amount of traders who switch to Bitcoin during the crash will be so small that we won't notice any price effect.

Most of the stock market investors are not that type of investors who will just look for alternatives (like jumping in crypto) while for let says that the stock market is currently on a dive status, just to get out and look for continuous profits. These investors already know that there will be a scenario like that in the future. Therefore, they will take advantage of that "low" then will execute their plan strategy in case of a crash rather than jumping to other investment alternatives.


Technically, NO. Stock market price movements don't correlate with the bitcoin price movement.

But generally, the one affected is the investor's strategy who thinks that the stock market can be linked to bitcoin price movement.

We haven't had a really big crash since Bitcoin's inception (it itself is in response to one) so things could turn up different from what we expect. Most people here agree that investors might buy it up in an attempt to try to keep their money's value and that's a very logical thing to do.

But let's also not discount the possibility that some people would be pulling out their money for various reasons. For one, people would need more cash during such events and people who don't have much left might dip into their crypto savings.

Yeah, they might have a reverse affect but they will already have to be in a reversed situation for that to happen. When the stock starts to crash, people will might jump to investing on bitcoin if they see that the price of bitcoin is rising or on the verge of rising. What if the stock market was crashing and the price of bitcoin also crashing at the same moment? Would they choose bitcoin despite the price going down? I don't think so. They would instead try something else.

Certainly no; we can't conclude that Stock market's investors will pull out their investment in order to shift into cryptocurrency market vice versa. A lot of stock market investors are not investing in cryptocurrency yet because they don't know how its market works.

It seems like it does not affect BTC at all, I was thinking when BTC dump below $10,000 that it's because of the stock market crash, but as wake up today, BTC is back to its good price and we can really tell how strong BTC this year as it's very stable and holding at the level of $10,000.

Hi.. I agree with you some people familiar with stock market will prefer buy gold because secure also did not volatile price.
but for me Bitcoin is good option if you buy when price cheap also if you have good attitude "risk management" , the choice is yours :)

I think so. because cash flows are always flowing and financial markets are often closely linked.
For example, I'm a stock investor and am making losses when the recession comes. but i found a great company but still want to keep the old stock.
then I had to sell the crypto asset to buy that company's stock, which would cause the price of coins to fall.

Those are newbies in crypto who got caught by the FOMO, so they easily come and easily get out of the market.
What we need are people who are true believers because they are the ones who can create a demand that will result to price increase, and when things are stable, those come and go traders will again enter the market to try to be profitable for short term.

The price now is already good but this is just a start of the possible next bull run, believe me, stock traders will again find more attractive if the bull run will take place soon.

I think it would not have any effect for bitcoin market and for a small example that Hongkong stock market were dropped because of bad situations at there and i heard the investors seeking another way to invest which is cryptocurrency would be their option but although people at there buying crypto as their assets but as you can see today that there was no effect for bitcoin price even more likely the price of majority cryptocurrency were dropped since yesterday

I think it can affect bitcoin in a good way considering a stock market crash means an indirect inflation. First of all companies lose on profits and they will make things more expensive in price, even if it is a service they charge more or if it is a product the profit needs to go up to make more money, which means basically is companies who lost money on the stock market will try to make it out from the customer.

Now, the price is higher that means people who earn money to use those services and products will charge more, either small business or salaries doesn't matter the price will go higher and that means inflation will go up, salaries are higher, products are more costly, services charge more all equals to inflation. Now, when inflation happens dollar loses its value and then bitcoin price goes up accordingly.

I hope so because people at the stock market can move into the bitcoin market, and I am sure that some of them already moves to the crypto market. And if the stock market crash, then the chance for bitcoin market or crypto market grow will bigger because we will see huge people that is join in the cryptocurrency market. That will give a chance for the cryptocurrency to increase, and the adoption process will happen fast because people from the stock market wants to search more profit from the cryptocurrency.

In my opinion most of the traditional investors will not go for crypto related investments if there is a crash on the traditional market because crypto considerable more risky then traditional investments so they will go for storage of a level like gold or other bank related investments but  literally some of them will adapt to crypto investments as well.

We don't really find a connection between the bitcoin market and the stock market but the stock market still contains too many giant fish, if this market collapses, these big fish will need to find another place to recover, somewhere in their minds, they will go to the bitcoin market when it is quite famous, and we have been in bitcoin for a long time, we can also see what is the impact of big fish on the market? However, this requires a huge accident and a forced situation, if not, the investor in the stock will not move here because for them, this land needs them to start over

In my opinion if bitcoin was experiencing a bullish market or just a healthy market growth, the stock market crash won't and shouldn't have any negative effect on the cryptocurrency market since there's no relationship between the two market. But in a situation were the growth of the cryptocurrency market is uncertain or if there was a correction in price, i have every reason to believe if the stock market crashing (like it just did) the cryptocurrency market will be affected in some manner since emotions still has it's major influence on the cryptomarket.

Let me explain my point. In a period of correction or bear market there's already uncertain in the community so when the stock does crashes it only adds to that fear as the media spreads the news which lead to fud and crashes the cryptomarket further. This might just be my reasoning considering I still believe emotions still has a major impact on the cryptomarket.

The instability of the stock market will still remain and it even affects crypto prices. We could think that there is no connection as they are an indifferent platform but they are. As bitcoin goes high, many investors will be converted into fiat and then invested in the stock market which basically affects the trend. And when the stock market will crash also, I've never thought that they will invest into bitcoin which making a way that crypto demand will be declining as well.

Yes it can affect it. The crash of the stock market means that bitcoin will go up because people will be scared to invest in stocks. We can expect the trading volumes to go up even for the altcoins..

how come when both markets are different  .

let say it can affect but i dont think that btc's price will increase because we are not sure if stock investors will migrate on btc . you know they invested on stocks because its more stable while btc isnt but lets say some of them are also btc investors , i guess they will sell some of thier btc just to have an emergency funds if ever they loose thier money on stocks  . so the value of btc will still decline  .

but we are talking about btc here not alts  . basically people will only buy or sell btc

As far as I know, No.

I know someone that is in that market and he asked me one day for an alternative, a breather as he said it and I said why not cryptocurrency? He said, I'll look at it but after months of talking to him, he said that it is risky and I should be careful since there are a lot of people that might take advantage of my profits in the long run, he said it is fishy, also he'd rather invest in gold than cryptos. I am a bit offended at that but it is his opinion and there are a lot of people that also talks like that to crypto so I just shrugged it off. So yeah, I don't think it affects Bitcoin or any other cryptos.

The stock market has not even crashed, many investors has started turning to cryptocurrency investment already, especially that of bitcoin investment and you see that stick market generally has been declining for a while now which bitcoin has even taken over, so if it crashes, they would just completely abandon the market and simply turn to the mist profitable one right now which is cryptocurrency trade.

Cryptocurrency market trade still benefits any investor more than stock market, whatever amount that is invested in stock market, if you give same to bitcoin market and then time both of them, you will see that the one for bitcoin would yield result faster than that of stock market, and I really see this happening in the near future, crypto market may even be the one that will quickly crashes the stock market when everyone turns to crypto.

I don't think so since both of the market platforms are not correlated but technically, yes. It's not that most people from the stock market would switch quickly to cryptocurrency that's why the possibility of crashing the cryptocurrency market is slightly small. Crypto price may rise or fall quickly due to its volatility nature but stock exchange investors don't just switch to cryptocurrency if their market crash, they preferred less risky investments.

If the stock market starts to fall, then this really should positively affect the situation in the cryptocurrency market. For this, cryptocurrency was created - to be an alternative means of payment for the existing payment systems. However, it is not necessary that investors at the same time will  fleeced  Bitcoin for their investments. Now there are a lot of good cryptocurrencies and bitcoin is already losing to them in many respects.

If there is complete stock market crisis most investors will move to the bitcoin and gold but if there is a huge crisis on stocks which literally affect the whole economic ecosystem so people faces serious issues and loss of their assets even for many secured assets as well.

I think it used to affect because people who were sick of market crashes in stock market moved to bitcoin but that doesn't seem to be the case anymore. People who are willing to move to bitcoin or crypto in general already moved and the people who are sick of market crashes but still don't move to bitcoin is not that much in numbers anymore, what would happen already happened and now it is just few that doesn't make that much difference.

Remember there are trillions in big investment companies but all of that is consisting of people with a bit of money coming together and giving their money to those people, there are people with less than 20 thousand dollars investing into those places, those people already moved to bitcoin if they were inclined and now only the few major players left which I assume won't since they haven't already.

I think both stock investor always want a different platform to invest .I think it will have a great impact if stock investor are starting all to invest on cryptos .The stock could be fall down .But the fact is that crypto market is much volatile than stock market that's why investor will think a 100 times before invest on cryptos .I the impact will not be huge cause both market is well platform for investor.

Market crashes are not that much shocking anymore, after 2008 people realized that its something they have to live with and take precautions accordingly, nowadays you can't find people who are fully invested in stocks, of course there are tons of people who have stock investments but none of them actually go for 100% stock investments, they are go for bonds, forex and commodities just to spread their risk around.

When market crashed gold went up so anyone who has gold AND stock investments are basically leveraging against themselves and since gold doesn't move much its a safe bet. So market crash could have a little affect on bitcoin but not as much as 2008 because nobody is that much exposed to stock market anymore. Maybe a few but that is not big enough to make a change.

I don't think so, because the two platforms are different and when the stock market goes down and the crypto market goes down simultaneously, then I think it's just an unexpected event and might also happen accidentally. So, investors have their own way of looking at opportunities and when they see the high-fluctuation crypto market, that might be another way for them to invest, but still their investment will tend to be in stock markets that tend to be stable and this is a situation that different about the crypto market.

Considering the current macroeconomic uncertainity that triggered by several factors including how aggressive US and China make their moves...

And a strong opinion that a lot of people looking for safe haven outside the stock market beside gold they are looking for an opportunity in crypto,  not sure how it would affect.. But until today we can't see any sign that there's a big money come in crypto market.

Opportunistic investors / traders will only makes the market unhealthy, prefer the organic one who really believe in crypto since day one.

Just like the traditional stock market, the cryptocurrency market comes crashing down during a fall. But unlike stocks, a dip in prices here means that more investors would buy in and the volume of trade would skyrocket. It's like pulling money out of the crashing stocks and putting it on cryptos which is sure  to go up over a period of time.

It is difficult to predict. Bitcoin was not in existence when the last time we had a crash in the stock market (2008-09). But there were similar incidents in the past, such as the Cyprus financial crisis and the savings bank haircut. A lot of people had predicted that the Bitcoin prices would rise following the Cyprus crisis, but nothing happened back then.

If that's how the stock market investors would think, then I believe crypto will grow in the long run.
Being an alternative is good because we know how much money are flowing in stocks, and who knows, they will fall in love with crypto trading and will not only make it as an alternative, instead they will stay here and that will help for the market to increase its value.

You cannot compare the recovery rate of stock market to that of cryptocurrency market, prior to when cryptocurrency market was established, I have seen cases where stock market crashes and people loose their investment completely, but in cryptocurrency, it would be difficult to lose money completely provided such seller do not panic sell, or the project he invested in is a scam or a bad one, but do long the project has a working team and product, the value will pick up faster and recover faster than that of stock market.

I know that many people that have investment in stock market are also beginning to consider the market of cryptocurrency as one that they also need to put money into, so if stock market crashes, it is either they fall back to crypto which I believe the two cannot fall at the same time.

Gold has always been the most appropriate way to avoid losses during a stock market crash. Now, in the same way, many investors are turning to gold, but I think that the growth of the crypto market capitalization indicates that some investors partially invest in cryptocurrencies. Because the growth of capitalization is observed against the background of falling quotes on stock exchanges.

Recently I have only received information about the stock market waiting for the book to happen and people are putting in crores and giving out good news about stocks rising up the share and thus I don't think stock market is gonna behave bad at a time like this in at least in my country .
But I think stocks cannot affect the bitcoins since they are an entirely different communities and they aren't that interconnected right now.

It is possible that due to the collapse of the stock market, investors will begin to switch to cryptocurrencies, but I think that this will not be a mass phenomenon. Large investors still see the high volatility of cryptocurrencies and the lack of regulation, so they are cautious about cryptocurrencies. I think the situation will slightly change with the launch of Bakkt, and confidence in cryptocurrencies will be more positive.

As we can see during history - unfortunately it will affect

Imagine if the stock market totally crashes and goes to zero, where would those investors put their money? i think they would look for alternatives, they are gamblers and they are ready to gamble their money in whatever the situation is, including in crypto currency trading, and that would affect bitcoin price as the money in the stock market would go into the crypto currency capitalization.

based on intermarket analisys if stock market crash, money flow could moved to cryptocurrency market.investors thinking switching their assets into different market will give them some money.i think it has possibility if stock market bitcoin price will soar.moreover bitcoin become more popular now.

Bitcoin is a promising place for investing but it is just for people who know it. I think they don't need to wait the traditional market investment crash first to move their money into bitcoin, but they will move directly when know bitcoin price decreasing and store their money into it with short term strategy.

But I doubt for those people who know traditional market only, I agree for some people above me who said they won't seek another place investment to save their money. Moreover with a bunch of negative information about bitcoin who can make their money lose in a few days those will makes they are afraid to use bitcoin as an alternative ways.

Maybe the greatest way when they found the situation and the still compel to investing they will choose gold to store their money. Yeah, I believe gold is the safe heaven to store our money since they are many people who consider that gold will have a high value although at that time its price decrease.

It could affect bitcoin in both ways. first btc could increase in value fast, because people leaving the traditional stock market and looking for other opportunities.

people who are invested in btc and in the stock market selling their stocks with a loss and taking profits on their btc investments to cover the losses. so, there are some different scenarios how a stock market crash can affect btc in my mind. 

The price went up initially as per the charts and the time at which Cyprus was going through its crisis, but it was NOT because of the crisis in Cyprus, but just the bust and boom cycles Bitcoin happens to go through.

People currently believe that Bitcoin's price has gone up because of the economic turmoil. In other words, it functions as a safe haven asset according to them, which I don't believe.

Most of the price action we have seen that has correlated with gold moving up is just coincidence. Bitcoin might be a store of value to us, but it definitely isn't for the more rational investors. They still consider Bitcoin a gamble.

The gold chart looks extremely bullish while the Bitcoin chart indicates that it could take a massive dump any time soon. When that happens people will realize that Bitcoin isn't a safe haven asset.

They're just in different stages of a monster uptrend. Both are very bullish on the monthly chart. Gold is basically where Bitcoin was in April this year, at the beginning stages of a monthly uptrend. It probably has several more months to go before having a multi-month correction like we're currently seeing in Bitcoin. By October, I expect Bitcoin to be resuming the 2019 bull trend.

Anyway, the S&P 500 doesn't look ready to crash from the look of these long shadow dojis on the weekly chart. Good volume too. Still lots of buyers in this area. No need to worry about safe havens just yet, not that I consider Bitcoin to be one! :P

That means more whales are coming and by that scenario, we can only assure that the price will go up if the demand increases but the price of bitcoin can go the sideways and might follow the trend of the stock market. The price of bitcoin should stay on a higher level, we can’t afford to see bitcoin’s recession.

During the 2015–16 Chinese stock market turbulence, there were predictions that the demand for Bitcoin would rise in China, but in the end nothing happened. Most of the investors regarded Bitcoin as an even more riskier alternative to the stocks. So I would be cautious before saying that any disturbance in the stock market can have a positive impact on the exchange rates of BTC.

That said, the last time we had a major crash in the stock market was in 2008. Another crash is due anytime now, as it happens in cycles of every 10 to 15 years. But it is difficult to predict whether Bitcoin will benefit from it or not. There is a chance that some of the investors will move to Bitcoin, to protect their wealth from the market crash.

The truth is that we will not know until we experiment it, we may think that a market crash will benefit bitcoin but during those circumstances people are looking for liquidity and when that happens most of the time they sell their assets that still have value, so even if bitcoin was not directly affected by the crisis its price could go down as people begin to sell so they can have money to pay the bills, however I really believe that if the next crisis is a huge one bitcoin will benefit from it as people realize that bitcoin cannot be created at will by the governments.

It is difficult to say. Even financial experts will never give the answer to this question. There can be 2 scenarios -- Bitcoin will Moonrise or fall. In the first case, many traders will start dealing with cryptocurrencies and simply invest all in BTC.
However, crypto traders can be scared by the news from the stock markets and sell their cryptocurrencies leaving the crypto market.

if they are scared about the news of the stock market then why the heck they would sell thier cryptos and leave cryptos ?  whats the connection between them ? they should have only sell thier stocks and leave stocks alone , theres also a possiblity that they will transfer on crypto investing therfor the value of  cryptos will rise but some would prefer to not invest for a while because they still have that phobia from investing  . stocks and btc/crypto are different so my answer is still no  .

indeed there is no authentic evidence of the relationship between the two. besides that, stock traders don't necessarily trade cryptocurrency, and vice versa. but so far I have seen news about cryptocurrency that can affect the price of crypto. and I only saw the news on crypto to determine attitude my transaction on crypto

Due to these possible events, it is always advisable to have the money invested in gold, not only bitcoin, because it is always compared to Dollar / Euro and other important currencies worldwide, and if we are going to see both the Rotchsfields and the Russia of Putin, they've been buying a lot of gold, maybe they handle information and make those decisions. But if there was a crash in the world economy, bitcoin would have to have its value vs gold.

Definitely. We live in a times where bonds give investors negative return. They seek opportunities to grow their portfolio and I would say that they are just waiting for ”legal” ways of obtaining crypto through institutions or are already doing so through OTC trading. It's worth a risk, I think so at least. Crazier things happened throughout the history and being prepared for even the least possible scenario might be rewarded sweetly  ;).

If the stock market will affect Bitcoin in any form, it will be in positive way as investors will be looking at an avenue to diversify their portfolio. Stock market might not recover easily until Bitcoin attain another all time high in price where the money will be be withdrawn and put back to stock market. At the moment, Bitcoin have not started the movement that all are expecting, recovery of stock market might last longer than usual

It really depends on the severity of the crash as well. If the crash is massive, BTC will most likely fall with it. No one will be looking for "alternatives" if the market is falling drastically.

At-least thats $0.02

I am sure that many investors from the traditional stock market are already invested in many coins, especially bitcoin, because bitcoin can give them a big profit once the price increases. Although now the situations of the market are not good, we have a chance to see the market will have a bull run time because from the last year until this year, the price can increases so the bull runs itself will come in the right time. But we need to hold the coins for a while if we don't want to miss the chance to get a bigger profit in the future.

There's interest. But it's still seen massively as a massive-risk investment. Not many wall street investors are probably taking it as seriously as some would hope.

Bitcoin actually has its internal issues that do cause it pumping or declining! We have network and mining problems and improvement that do affect bitcoin pricing often and that is why we should not completely focussing on the external factors like declining in stock's pricing and interest or monetary policy of a particular country for what happen to bitcoin or other coins.

It is the opposite, in times of great crises people do everything they can to find safe assets to invest their money in them, this is the main function of gold, when the economy is doing well gold receives almost no attention except for the gold bugs but when things go wrong we can clearly see a growing interest by the rest of the population in buying gold and silver as well, if bitcoin begins to perform some of the functions of gold and becomes a store of value a crash on the stock market could benefit it immensely.

Considering the higher risk nature of Bitcoin, I don't think the same logic applies to Bitcoin in comparison to Gold. There's no doubt that some may flock to Bitcoin to store assets when compared to the stock market/bonds, but I don't think it'll be the same in comparison to gold.

First, I don't think bitcoin and stock market are correlated. If stock market crashes, it wouldn't cause bitcoin price fall. Assume that people are selling their stock. It won't cause cryptocurrencies holders lose their faith and sell their bitcoins. They are completely different markets. It is same as 2007-2009. Bitcoin market crashed. It didn't caused people to sell their gold. And now bitcoin is that gold. In the past stock market crash, many people chose gold as the alternative. If stock market crashes again, this time people will have another option too. That's bitcoin.
Generally, if a financial market crashes, people will invest ij other markets. As bitcoin and stock market are nit correlated, crash in stock market can cause bitcoin to thrive.
(I have considered the current market of bitcoin which I think many people are enthusiastic in investing in it. Whenever stock market crashes, bitcoin market should be considered based on that time.)

Depends on the level of the crash. We have seen just recently that stock market crashed and than the price of bitcoin went down as well, some say it was related, some say it was coincidence, I am not an expert so I can't say if it was just coincidence or it was just what happens when stock market crashes. On the other hand we have seen previous falls of stock market in USA as well and a lot of countries going bankrupt like Cyprus deal and it affected positively for bitcoin prices.

So, we have examples of stock market going down and bitcoin going up, we have examples of stock market going down and bitcoin going down as well. We can either say its counter-related, we can say its related or we can say two of those have nothing to do with each other at all.

Indeed, the stock market has had a few accidents but the association with bitcoin is almost non-existent, the value of bitcoin does not follow the trend of the stock market but we should expand the problem, here, perhaps the accidents are still not too big, investors still do not need to move to new locations to avoid the big waves. This means that if one day, the stock market collapses to a horrible level, the value and some of the changes in bitcoin will occur when stock investors begin to participate in bitcoin.

I think that in the event of a fall in the stock market, a lot of money will be redirected to cryptocurrency. Therefore, the crisis of the crypto market is only at hand.
Institutional investors are well aware that it is cryptocurrency that can help them save money in the event of a severe crisis.

There is no big stock market crash example to determine whether bitcoin market is correlated with stock market or not. The past big stock market crash happened in 2008 when bitcoin had not created yet. In the past years we have had only some small temporary decreases in stock market. As we know some small increases and decreases in price of bitcoin is inevitable and normal we cannot say they have been related to stock market.

That will happen if people in the stock market are desperate to see the market fallen. They will moves to the crypto market, and they will see a chance to make money again. I think when it's happening in the crypto market, we are going to see another support from the new investor that will help cryptocurrency will grow fast in this year. But I don't think that people who are trying with stock market will come easily to the crypto because some of them do not believe in cryptocurrency.

What people are mistaking is that people who have "lost" money in stocks do not feel the same way you feel, there are ones that even invest more so they could make more money when it goes back up. It all depends on what stocks you are investing but people heavily invested into banks after 2008 for example, why? Because banks got so low and even almost bankrupted that from there on the only direction was up, and of course they went up as well so it was a smart decision.

However at the same time, people didn't really took out their money as well, some of course did but not all because if they lost that much money, what good is getting out with a panic? At best you lost some money, at worst you lost money plus you could had it back but didn't. So they keep it in and wait.

I don't know but maybe it does just like what you've said if the stock market drops they might come to crypto as an alternative,
And what if they already gain profit from crypto they could justtake it all away and put it back in stock.
Who knows maybe there are some people who might have been doing it stocks to crypto or the other way around .

Possibly bitcoin also will get into affect if the stock market fall because of panic from investors but like you said it may still unknown due to the fact bitcoin didn't faced any big economical crisis yet.On the other hand people might think bitcoin as an alternative when everything is falling for long term so if there is huge economical crisis in the future bitcoin will get more attention and people will move to bitcoin from the losing assets.

Why panic sell? Why not panic buy? I expect many people buy bitcoin to not miss the train. Bitcoin has already proved that it can rise so fast. Why should people panic sell while bitcoin and stock market is not correlated? If stock market crashes, the money should flow to a new market.

I see some individuals investors taking away money from stocks & bonds into cryptocurrencies.
That's for sure, but that would be tiny percentage with limited monetary impact.

Currently most institutional portfolios I've seen, cryptocurrency is less than 0.01%, as a high-risk asset to maximize returns and diversify.
Why not increase it further? Because after a point, the curve inverts and the systemic risk introduced by cryptoassets outweighs the diversification benefits. If anything, we have been slowly reducing exposure, not increasing; while also dumping GBP and increasing exposure to low volatility currencies such as Yen

When we have a severe market crash, the tendency is to flee to safer assets, not plunging into more uncertainty & risk (except for a few market contrarians, but those already made their move long ago). It's not rational but human nature.
I don't know a single institutional fund manager who would increase their risk potential in a downturn..even if its the right thing in hindsight...as they might as well lose their job in the worst time possible and a get a taint on their reputation. The scope of actions of a fund manager is severely constrained after all.. you don't get to do what you want... I wish.
Funds will probably do what traditionally has been done before and invest in safe assets with low volatility. That means fleeing to gold, US Gov Bonds, CHF, Yen, some real estate.

In extremes its almost completely certain to have an effect.  The reason is hot money, people leverage their positions to gain from the appreciate of capital they have not yet earned.   So long as you can sell immediately and are correct on the price gain then it works.   When one set of prices fall it starts to trigger a withdrawal tide of capital in all sorts of markets.

   Bitcoin is seen as very risky on the spectrum hence people will sell a position here before they sell anything like equity or bond holdings.    Also its easily arguable that stocks will return a yield to owners where as BTC is a kind of commodity speculation.

   In theory BTC is a unleveraged system not subject to fractional reserve effects like this but as capital from an easy dollar policy is spread around the world in trillions of debt and new money issued, the price of everything is being altered by that capital

The last time we had a major crash was in 2008-09 and back then Bitcoin was not in existence, so don't have previous examples of what would happen if a crash occurs. But we had several financial crises of varying magnitude during the past decade. The Cypriot and Greek crisis comes to mind now. At that time also, a lot of people were claiming that Bitcoin would see a rise in acceptability and popularity, but in the end nothing really happened. The same can be said about the ongoing crisis in Venezuela as well. Globally, these incidents have very little impact. Even the ongoing trade war between the United States and China seems to have very little impact on the Bitcoin exchange rates.

I believe that investors will enter the new global cryptocurrency market only when circumstances really squeeze them. And it will squeeze them with a global wave of economic crisis. Since only cryptocurrencies will be a relatively safe haven at that time, in an effort to save their capital, investors will pour them into digital assets. And not necessarily in bitcoin, but the price will definitely soar to the currently unimaginable limits. But for how long? After growth, there is always a decline.

I wait a new big wave of crisis in 2020-21. So, will see..

It is very interesting question
Look  S&P500 chart and bitcoin chart.Both look very similar
Bitcoin is important indicator for wall street traders
It is because bitcoin is blue chip between risky asset class
Bitcoin failing first then wall street follow

There is no investor that would deliberately crash the market of what he has invested in and expecting some good return, the stock market do crash, which is usually caused sometime by poor management or state of the economy.

I a situation where stock market crashes, people will only want to pull their money out to put in another functioning system, and since bitcoin or cryptocurrency market is not a new one to them, they will see it as an opportunity for them to just invest in it once and for all provided that the market value then would not scare them away thinking it had already reached peak and if such thing happen, the surely the value f bitcoin will definitely grow. They might not come easily to crypto, but when problem arises won’t they come?

In order for these huge whales to consider bitcoin as an alternative to other stuff we need to make sure we are easily disposable. Now you think that might be a bad thing but its not, being able to cash out whenever you want without a problem is the number one thing that stocks have over us, some people with low amounts of dollars in bitcoin think its quite easy to cash out but when you have 5+ million dollars in bitcoin and want it all in cash back to your bank account there are a lot of legal hoops you have to go through and that is creating a bit of trouble for us to get the whales into the system.

Stocks are not like that, you sell your stocks and than get your money back and all of it is prepared for you already so you have no problem doing it, we need bitcoin to be like that.

Not sure what chart you look at, but they aren't 'very' similar at all. It shouldn't even be considered similar because the S&P is composed of 500 of the largest companies in the US, all with revenue and profit streams. Bitcoin's chart reflects speculation at its finest since there isn't anything that's backing it aside from the electricity required to mint a coin.

Mind explaining how you come up with that? There is not enough data to make such a statement. With how people are hyping up institutions entering crypto, they make it seem that crypto needs institutions to get to the next level. In that regard, who needs who?

I agree with your opinion about the problem that some people will face. That's why I expect many people to choose gold as alternative of stock market. But be sure bitcoin will also attract many investors. All the countries are not that strict when you deposit your money to their banks. We have already many whales in the market. It's a sign there is no problem for many people when they deal with big amounts of bitcoin. Both bitcoin and gold have their own advantages and disadvantages. Some will be attracted to bitcoin and some will be attracted to gold. There is no doubt bitcoin will attract many current investors of stock market if stock market crashes. The percentage of the money that flow from stock market to bitcoin depend on many factors abd what you mentioned is only one of them which will be considered by some investors as a disadvantage.

If a recession occurs, then naturally the investors will be dumping their stocks/mutual funds and flocking to "safer" assets such as treasury bonds and bullion bars. Now the issue with cryptocurrency is that it is not being considered as a "safe" asset. On the other hand, it is being regarded as even more riskier than the equities and mutual funds.

Gold and other precious metals seems to be the haven most people tend to go to when the stocks markets starts to crash and seems most people tend to see Bitcoin in the same category as Gold I think that a supposed crash would be very beneficial to Bitcoins and cryptos as a whole.

it can and it does , as we speak
with the usual investment heavens crashing down and markets falling
many of the traditional investors are going to look at cryptocurrencies , namely bitcoin
it was said that when the price crashed below the 10.000 mark a couple of weeks ago , Coinbase registered a lot of buy orders
people were buying up despite the falling price , same happened a day or two ago , depsite the sudden dump of coins the price didn't crash and stabilized at 9400-9600
we can see that stock market crashes and trade wars can be a good sign for cryptocurrencies
well , unless it crashes too much , in this case things could become very unpredictable

Many people are of the view that if the stock market crashes it will have a good impact on Bitcoins. What is more worse is they are waiting for the stocks and the financial market to crash so that the Bitcoin can gain high values and they can enjoy the profits.

I am not sure if this could happen in reality because if stock market crashes then the Bitcoin market will also crash, maybe people will invest in Gold only.

I believe Bitcoin would be resilient against a stock market crash, although I could see money funneling out of Bitcoin in order to take profits and pick up some deals when the market is down. However, if we enter into a depression and governments around the world vye for more control using extreme methods, the price of Bitcoin could potentially plummet. If neither of these things happen, I think Bitcoin has nowhere to go but up.

Bitcoin isn't going to be a deflationary currency until the last Satoshi is minted somewhere in the year 2140. The same applies to gold. It's not a deflationary currency as long as gold is still being minted and thus inflate the total supply further.

I wouldn't call gold deflationary anyway, especially with how technology keeps improving-- gold that isn't being minted today because that would be too expensive, will likely be minted profitably somewhere in the next decades.

People here seem to be overly optimistic about Bitcoin doing well during a crisis, but I wouldn't really count on that as long as it is perceived to be a very risky asset class. Bitcoin has a lot of catching up to do in order to be a safe haven asset.

We may not get the people who want a safer investment for their crashing stocks however we can get those crazy people who are chasing their loss and they could invest their money into bitcoin to make more money and return those losses they had from the stock crashes.

I know those are not big in numbers as population and community for us but at least that would be big in amount of money they will bring in, stock market people in USA is the biggest investors in anywhere around the world, maybe second behind UK and forex because lets be honest they have been ruling over 100+ nations for the past 500+ years so they are used to "forex" type of stuff and they have been doing it very well but both of those communities may enjoy bitcoin and its fast pace if they burn out of their investment methods.

Yes and no.
Yes if somehow the whales are also involved in Bitcoin and they need to cashout in order to cover the loss with money from bitcoin but I doubt big whales are involved into stocks anymore.
No because there are 2 different things and mostly a crash on stocks can bring a new wave of investors into bitcoin and blockchain and even alts or this is how I see a stock crash at least, if investors are not big involved into bitcoin , nothing to worry about but if they are lets hope they don't have a lot of money into bitcoin.

If investor stock with many bitcoin I think market or bitcoin never crash price, but many investor running drama with bitcoin how they always make bitcoin holder panic for selling or buying, they want to get profit without have to wait long term with make bad news for buying and always make good news for selling their bitcoin, maybe if many investor want to stock bitcoin keep have stable price for bitcoin at the future.

My opinion is that events in the stock market can affect the price of cryptocurrencies. For example, when stocks of companies become cheaper, investors are looking for new trading tools to invest in. And it is likely that some of them choose cryptocurrencies as savings and capital gains. Everything in the economy is connected, if somewhere decreased, then somewhere increased.

You are pretty much right. Few weeks back due to global economic slowdown, all the stocks were painted in red but there stood Bitcoin shining in green from the rest of the commodities. People are going to invest one way or the other, so they resort to cryptocurrencies when other sources become unprofitable.

It could really go both the ways. Stock market crash can sometimes be so devastating that people decide to counter it by investing in some other modes altogether outside the Economy which include Bullion and certain precious commodities. However we have never had bitcoin in the past during a major crash therefore chances are that this time whenever a stock market crash takes place people could try to diversify their holdings into Bitcoin too. After all it's a completely anonymous instrument which is not at all affected by the normal economy. However the problem is it's volatility we have known that Bitcoin is too volatile So question is whether people would want to diversify their holdings into such a volatile currency?

I think stock market fund will moved to other financial marker.investors will not let their money stuck in only one place and didn't produce profits.i am sure will stock marker crash some money will moved to cryptocurrencies market .this is already be intermarket analisys law.and every profesional investor understand it.they will always find market that could give them profits.

It can affect the bitcoin but in good terms. If the stock market crashes then the people who invested there especially the newbies will be in panic and they will withdraw their money from their stock investments and they will look for something better with a higher profit margin and that would be Bitcoin and if they will transfer from stock market into bitcoin then it will trigger a price pump for bitcoin.

There are two possible things to happen to bitcoin if stock market will crash.

First thing is, its possible for the price of bitcoin to rise since investors will transfer their investment to bitcoin which can increase the demand and that will result to pump.
Second thing is, it is also possible for bitcoin price to fall same as the stock market. Why? because investors will put their investment into safety where they avoid the market even in cryptocurrency, they will probably pull out their investment which will result for the fall of bitcoin price.

If the stock market falls they will certainly see other investments but not crypto, because based on differences in risk in traditional stocks and crypto. The characteristics of stock investors look more at risk than profit so it is most likely they do not choose cryptocurrency investments that have a high level of risk. But small chances can make impact on cryptocurrency, because holders and investors can come from anywhere.

in my opinion the fall of the stock market will not have much impact on the price of bitcoin. because when the stock market weakens, some stock market investors might choose to stay. or they will turn to gold investment. because in recent months gold investment has increased. maybe there is a small part that switch bitcoin investments. but I don't think that will have an impact on the price of bitcoin

Stock market and cryptocurrency market are independent of their own and works in different manner.Crash of one market does not have any significant effect on prices of other market.The stock market is comparitavely less risky compared to crrypto market as predictions can ne made beforehand of stock prices on growth basis.The shareholders might consider some less risky options like real estate or gold investment other than stocks.So they are not correlated.

Yes, they are different in most of aspects, and I can't find any reason how stock market crash affect Bitcoin, when in fact, it might happen that stock market traders will choose to trade in crypto rather, as they can find more opportunity in trading crypto as they have a lot of option and can start with small amount.

Any economic movement will somehow affect bitcoins.
In the case of a major stock market crash, I tend to think that the impact would be positive, since bitcoins would represent a safe haven.

I think there is no impact to the cryptocurrency market even though the stock market crashed down. Those market have different buyer and sellers, stock market and cryptocurrency market are not interconnected. So the stock market has no impact over the bitcoin price.

Stocks can and will affect Bitcoin due to investors taking multiple positions in different asset classes.   However Bitcoin is supposed to be only lightly correlated which apparently gives asset managers an appreciation for diversifying into Bitcoin.    If the move is big enough in traditional markets and -20% is possible then the money from elsewhere will be required to pay leverage on positions taken for stocks.    People often take gold or US treasury bonds for this reason but also Bitcoin will see some sell, certainly I dont expect BTC to appreciate without an expansion in monetary base ongoing and apparent.

stock market may have an influence on the price movements of bitcoin, and the stock market can make prices rise and this is quite good news, meaning that when many traders from the stock market turn to bitcoin then it will make bitcoin prices rise and demand increase.

Pure rubbish!!!

According to you Bitcoin represent a safe haven when compared to the stocks? I would call it BS. Bitcoin is an asset which went down by 85% during 2018. You can't call such an asset as a safe haven. There are assets that can be considered as safe havens, and they include gold, real estate, treasury bonds.etc. But I would never consider Bitcoin as one of them.

I don't think so, the Stock market is the largest platform in the current context as a capital market but Bitcoin and Cryptocurrency is totally different, In the stock market you can buy a share of a company, you may avail the profit, dividend and so many facilities within a regulation process, but in the Bitcoin system, Only you can get the higher price but you can't get any assurance of security so it's not an easy prediction that people will attach themselves in Bitcoin rather than the stock market, and there are no possibilities to crash a stock market for the reason of Bitcoin because people are still confused about the Bitcoin and blockchain system, only a proper set of regulation will eradicate this confusion and then people will start investing and trading rather than traditional stock market.

That could be the case but usually when stocks crash every other investment crashes as well and people escape to fiat money. There would have to be extraordinary circumstances for bitcoin to pump when stocks dump. One of such circumstances would be war. Fiat money and stocks would dump at the same time and safe independent investments like bitcoin would flourish.

If you think that the stock market went down last week due to global economic slowdown then the bitcoin market also went down during that period and it does have a relation, if there are more investors in the market than we see now and if there is a financial slow down then the entire financial sector will feel the slow down and resort to gold or other commodities, bitcoin can be used as a financial safe heaven during those period but the risk of high volatility will prevent users in trusting bitcoin too. In the future people will trust bitcoin and can boost the market when there is a global crises but not in the near future.

Its been a long time since bitcoin haa entered the market as well as the stock market. It never affects each other since every trader has their own way of trading, some of them wants bitcoin some of the still in the stock marker. There also have different features therefore I conclude that it doesnt affects each other.

Actually it has certain affect of the price since for sure people will pull out there fiat if there's a stock crash happens and just think of it since it's still binds since we are talking money and for sure many people will put there safety net before putting on another investments. but this will surely temporarily happens since for sure they will look on the bitcoins since it has a greater chance to pump up again just like what happen before.

It depends on the reason on why it crashed but most investors would shift to an alternative option. Consider yourself as an investor who just experienced after a loss in the stock market, what would be your next move? Will you consider investing into cryptocurrencies (who have high-returns for high-risk) or another alternative present in the market (i.e. gold, bonds, real estate, etc.)?


In a way, the price of cryptocurrencies would be affected as a shift to an alternative investment (in this cases bitcoin) may be preferred- thus increasing the demand.

of course not they are in two different fields, so if one of them goes down or rises, then the other one doesn't get any influence, that's why it's better to save money in many places, if you fail in one place, you can succeed elsewhere.

Fields don't matter. Money is money.

If stock market crashes hard or one fiat currency dies all of a sudden people will want to invest in something else. Bitcoin is very useful for those who want to hide their money or take it with them abroad. If a big crisis happens a lot of them will choose to buy bitcoin and run with it than carry cash. Banks will not be usueful because a big stock market crash will affect their solvency.

Stocks arent cash, they are for people with spare cash so I dont think for that reason people move away from stocks into Bitcoin.    In the spectrum of speculative assets, Bitcoin is more extreme then most stocks which means people move money from Bitcoin into a stock account on a fall.
   Theres a regular tide of expansion of assets and contraction of assets and money moves in a regular way from the most speculative to what is viewed as completely solid which is something like gold.  I've never classed Bitcoin as near to gold but in this thread question, BTC is the more risk based asset of the two.    

To try and explain what I mean, I'll post a source for this idea of liquidity and the variance in asset types view in where the economy is placed.   -

why not? invest foundations, investors, brokers, invest companies they all are thinking about profits.
be sure, that if they will find out that investments in crypto is more profitable and less risky then in stock market
this money flows are always in the move looking for more valuable place to be invested..

There is no relationship between the Stock and the Cryptocurrency Market because the two have different flows of investment. have risks or constraints, respectively. what affects is the condition of the world economy which can disrupt all investment instruments including stocks. cryptocurrency or exchange between currencies. so for me stocks when going up or down don't have an effect on the survival of the cryptocurrency market

a very good solution because we all cannot predict and know the development of the cryptocurrency and its investments are many choices and are smart in taking advantage of every opportunity we will get in investing all our own choices and investments that determine and in my opinion a great risk will certainly get big profit too

It all depends on the institutional investors - many of whom borrow to invest in stocks.

Say you have a hedge fund that owns some bitcoins and has also borrowed to invest in stocks. The stock market tanks and the hedge fund experiences margin calls. They then sell anything liquid to meet those margin calls - and bitcoin is pretty liquid in that you can find a buyer in seconds. Of course that in turn tanks the bitcoin price.

Most correlations that you see between stocks, bonds, gold and bitcoin is down to forced selling due to margin calls in one sector impacting other sectors.

There is a effect but the effect is very minimal. Like what happened when the stock market in my economy crashed and it was 2017; it is also the beggining of the bearish market but the cryprocurrency market in the year 2017 was a bullish market.

For me, ye, when the stock market crash, some investors will find new alternative investments. But before you invest, you conducted a study, analysis, and get some knowledge about the thing that you will spend. So if you are an investor that wants a safer path, bitcoin is not for you because bitcoin's price is very fluctuating, and it's precarious. Also, in trading/ market, the demand/ volume is essential to decide that the price rate will be. :)

Iam a bit Confused, because I don't think they are related to each other , even stock market crash , it will make no effect to bitcoin and vice versa,except :
1. bitcoin has been registered on stock Market.
2. people from Stock Market move away to crypto Market


yes , that because people move away from stock market , and for reminding, on that time , there a lot of money loundrying cases.

I know there is no crypto impact on the stock market. It may be that the stock market is bad as it is often a bad cryptocurrency.
The stock market is downright indeed the project was having problems and investors went from there. And choosing a cryptocurrency as a new investment alternative.

Stock market investment and Crypto currency investment are different platform, process and commodities therefore it will not affect Bitcoin if ever stocks will crash. Except if the stock market investors will always look for alternative investments then it will benefit crypto because they could easily shift to Bitcoin increasing the users and investors of it.

For some shares that are tied to bitcoin in my opinion will have an effect on the crypto market. it cannot be denied anymore that indeed the world economy and the policies of large countries like America and China can influence the condition of the cryptocurrency market. the country has quite an effect on the market and it has been proven

Yes, they have both alternatives. However, when a stock market dumps especially dow jones, in my own obserbations the cryptocurrency dumps as well. While in times when bitcoin pumps no matter what the state of stock market is it is still making its own way. To conclude and give my final thought they are correlated with each other when big crash occurs it depends in each market what is the current state of the trend.

I think bitcoin and stocks are two different investment tools. bitcoin is a cryptocurrrency whose price increases and decreases are affected by demand and supply. and these requests and offers can be influenced by news about bitcoin or FUD. while shares are securities that are traded by a company. Stocks are strongly influenced by the profits of the company invested. so when the stock market crashes I don't think it will impact the price of bitcoin.

This reminded me of how I started investing into crypto currencies and a good example of how a stock market can affect bitcoin and other alternatives. I used to live with my friends and relatives in a big villa. We were all into stock market. We were doing good before then. And then came late 2016 and our local stock market went heavy bearish for months. Dumps were huge as western investors withdrew due to our nation's new administration favoring the Chinese and Russian bloc. Me and my gang went for other investment alternatives like forex and real estate. Some of us discovered then low capitalized crypto market. And I was one of the lucky guys that became deeply entrenched with it.         

As you said, where market logic is when the stock market is in crash, investors will switch to other investments. Where the investment can at least secure the value of their money. From what I know the type of stock investor is more interested in security than risk, so the gold market is more preferred.

The effects of the stock market there must be, whether it's good or bad. This depends on how the investor behaves.

Indeed! From the platform to market coins to market value are very different. I  dont think that it can affect bitcoin. Its been ages everytime stock market crash it doesnt affect bitcoin same as bitcoin when bitcoin pumps the stock market is still crash when bitcoin crash stock market are still at the same situation. Many traders in cryptocurrency are not into stock market they more believes in cryptocurrency.

its very rare to heard stock investors moved their money into cryptocurrency market.usually they choose portofolio that has same type with stock,maybe bond , commodity , metal or oil will be their choice when stock msrket crash.but if it happen ,it will give positive impact to crypto market.we hope in near future stock market investors wil consider crypto market as good place to invest their money.

Although bitcoin is an alternative for shareholders when the stock market is crashing, I think bitcoin is not the only best alternative for shareholders to save their investment. Maybe they will choose commodities like gold or oil that are more stable than bitcoin which has price volatility.

I believe that in the first place everything will depend on the risks that arise in the stock market and in the cryptocurrency market.  Of course, a certain part of the shareholders in any case will switch to cryptocurrency, because it, after all, also becomes a very interesting and popular asset.  But whoever is accustomed to take less risks, in any case, will buy up more stable assets.

It doesnt affect bitcoin , some traders only trades in cryptocurrency , they are both different so why do we need to compare it, when the other one crash it doesnt affect others, bitcoin crashes last year does it affect the stock market? No , but the thing is some stock holder doesnt invest in bitcoin  because it is not yet legal they want to invest in legal things in order for them not to lose anything.

    But I will say that up to some extent the stock market will affect the price of bitcoin because the investors always seek for the good profit and if the stock market crashes then many investors would want to invest in bitcoin to recover their losses, so may be the price of bitcoin does not affect the stock market but the stock market will affect bitcoin in positive way. The other thing is that it does matter bitcoin is legal or not, the investors always look for the profit.

Well if the stock market will crash investor will totally find ways to invest in some investment like gold and crypto. It will big impact in crypto if some investors will invest in  bitcoin or altcoin. There are chance that the crypto market price will grow if that happen. But of course it's hard to think that stock market will crash because in our technology now they can find ways to fix everything.

Well, basically if an asset crash, or lets think of an exchanges, if an Exchange crashes or had some issues concerning their services, what would happen is that, investors on that exchange will lose interest and also, there are some who will choose another exchange to put their investment into. The same way goes with stock and crypto. If the stock market crash, there could be a possibility of investors to go ahead and try cryptocurrency. In this case, it can affect Bitcoin and other crypto positively by having more market volume and huge prices.

in my opinion when the stock market falls, some investors might move to invest in bitcoin. but I think it will not affect the price of bitcoin. because the amount of bitcoin purchased may be only a little.
in my opinion the most impacting on the increase and decrease in the price of bitcoin is the news about bitcoin and FUD and the whales that make purchases or sales of bitcoin in large quantities.

This is just one possibility. But there are also other possibilities. Let me give you another situation. If Bitcoin suddenly crashed and its price falls down to the deepest bottom, say $100. Would you be leaving Bitcoin for good? Would you be saying your final goodbye to it? I don't know your decision but for me, I won't. Instead of leaving Bitcoin, I would gather most of my savings and use them to buy Bitcoin. That crash must be an opportunity rather than an end of the world.

My opinion is different to you. I think the crypto market is also a financial market and only gold is something special. You know, early in 2019 when the US-China trade was very bad and immediately the price of Bitcoin fell more than 50% from $ 6k5 -> $ 3k2. then when the Fed lowered interest rates and Trump made many decisions in favor of businesses in the US, the stock market increased but the crypto market remained stable.
This shows that the crypto market is unpredictable and sometimes it cannot follow a standard.

Well, you can look at it like this:

(1) IF the reason BTC prices are were they are at on speculation that the price will rise and it is because the stock market is high and the economy is good...

and using this extra discretionary spending in good times on Bitcoin...well, it could be that the market crash would affect Bitcoin in a negative way, price-wise.

In other words, you'd want to buy BTC, but with stock market down and economy going down, etc, you no longer have the discretionary extra income to do buy BTC and thus a slump in price/usage/etc.

{2) IF on the other hand Bitcoin is like virtual real estate, like only 21 million coin and 3 million BTC left, and holding like land. Or how I view BTC as a limited asset.

 (less and less available on adoption worldwide when the recession hits)  and in a stock market downturn acts like 'virtual gold' kinda/sorta like a 'store of value' in bad economic times and a

stock market downturn..then likely it would act as a store of value like gold and go sideways, maybe up a little in value, but at worse would not tank the 20% like the stock market to be

called a recession or even further.


So make your bet. I'm HODL'ing BTC now because with my state taxes and capital gain taxes if I sold BTC that is 25% gone poof....if I put these newly converted BTC to $$$ into the stock market

and we have a recession (20% correction on the stock market is a recession) now I'm 45% down and with the antics of the Trump Administration I am myself assuming at least for a bit a 40% downturn

which would make my play of BTC to cash a 65% loss. Also, the rule of thumb used to be 3-7 years on a recession for the stock market to come back. A lot of those in the know are guessing 7-12 years

on the next recession to come back from it. So IMHO, now is NOT the time to diversify some BTC into the stock market, especially at what is now the ATH in the USA. Wait, till a recession and stuff

goes off the rails and then get stocks if you wish or real estate or whatever. Myself, I would be very despondent, if I converted BTC to USD into stocks now and then we had a recession at 40% and

I'd be looking at a 65% loss...just to watch BTC and gold go sideways and/or up.

Thus my bet is to HODL the hoard and hang in there with traditional stocks as well. Have no debt for the next few years if possible and live within your means. I've gone thru like 5 recessions, they

suck and usually you blame yourself for job loss or whatever, when they happen, even though most of this stuff on 20/20 hindsight will be out of your control. So pay the J.C. Penny card off. Buy

some new tires. Do SOMETHING! Before the recession hits. If I am dead wrong, well, you have your finances in order...but if I'm right, you won't beat yourself up about such stuff in that at least

you did something pro-actively.

end of my rant (my coping mechanisms above anyway)

later

Brad

I think this is just what will happen at a crash of stock market. People will sell off the remaining shares they have to invest in bitcoin. So, I think the topic could be captioned as what the effect will be and not "affect".

Bitcoin and crypto is a support against society, expansion, and US Stocks. Additionally, Bitcoin is regularly alluded to as advanced gold and a store of significant worth in time of emergency and vulnerability. Along these lines, Bitcoin would flourish in a US Market crash. Notwithstanding, Bitcoin has never been put to this test. It developed out of the ruble of the 2008 emergency and has existed nearby a flourishing US Stock Market for as far back as 9 years.

purchasing Bitcoin has been a positive venture for recent college grads rather than owning customary stocks. This could at last push their age toward a worldwide money related world revolved around a blockchain record.

That is why I prefer to invest more on a less volatile market such as Gold. Unlike Bitcoin or any other crypto currency, the movement of prices for Gold are much safer and is less risky. If I would earn a lot of profit I would save and invest less in crypto world and more on physical market.

This could in turn affect stock market's welfare. But I don't see it ending any time soon. To add up, these are indirect changes that could happen to bitcoin when stock market fails. I personally see nothing that could affect bitcoin's price in the stock market. After all, these two are behaving differently and are of different investment platforms, so this definitely means that there'll be no direct effect on bitcoin in case stock market crashes.

i think stock markets do not have a big impact on crypto market. But ofcourse there are traders that trades on both stock market and crypto market. As long as crypto market keeps the huge potential, it will be charming for all stock market investors&traders as well.

The stock market has a big influence around the world and I have no doubts that it will affect this market negatively at the beginning if it crashed, many people that are holding cryptocurrencies have stocks as well and if the price of their stocks crashed most likely they will have to sell their coins in order to pay their debts and other obligations, this will create a crash in the market of cryptocurrencies but it will be one from which we will easily recover given enough time.

Forecasts of this type are of little use, because the variables involved are many. In principle, a possible collapse of the stock exchange should correspond to a greater interest in the crypto, but in fact anything can happen.

If you will ask if there is an effect, my answer is definitely yes. Even though cryptocurrency and stock market are different from each other, there are sone areas where they can affect each other. If there will be financial crisis wherr the stock market crashed, we should expect that the cryptocurrency will also crashed because it is not a safe heaven. Investors will withdraw their money and in order for them to protect it they will invest it in gold or passive generating assets.

Basically yeah, agreed.
I assume that even our discussion and that whole forum can somehow affect the crypto market

It is affected for some person or business that are related from stock market and crypto because some of crypto and stock market has a connection. So there are some case that it would affect both side by having some issue from of that coin.

It will affect the Bitvoin price indirectly,Many stockmarket investors have diversification in crpto market if they loose from stock market will put all effort on crypto market to recover the losses.Excesaive rush to crypto raise the volatility and existing traders will get benefit from it.No matter you invest in crypto or atock market make sure must diversify the investment to recover the losses and face the bad time of market with courage.

I have been thinking of that myself , what if a lot of people pulled out their money out of crypto when it crashed in 2017, and put it in to Stocks.
And then when the stockmarket is performing bad/or before a big event like the halvening they pull it out and put it back in to Crypto.

That might be a good strategy, it isn't weird to think that most people investing in to crypto also have a portfolio in stocks or the other way around.
So yeh I definitely think those 2 influence the price of eachother.

the technique is indeed not much different between the stock market and the crypto market, and your opinion could be the reason because people who trade and invest are usually not only in one place, and if they find potential profit then they will be able to take place in it.

Well that could happen, but I think that majority of stock person doesn't want to delve with crypto or bitcoin's volatility that's why I doubt that this has occur. But the feeling is mutual though, there are crypto traders that doesn't want to trade stocks as well. So with that said, there might not be any correlation between the two financial markets.

 There will be affects of it for sure since its both finance related but nobody asked "where?" :D I guess we all assumed USA but reality is, if its in some third world nation, there has been plenty of stock market crashes in the past 10 years that we didn't even feel for sure because it was in some small country. When its on a huge nation we will feel it and many people who lost money on stocks may affect it badly on short term but would see bitcoin as a better option to save in the long term and affect it better if we are patient, thats basically what happened in 2019 and late 2018, stock market crashed, price went down but in long term went higher because of all the attention it got.

If many stock brokers are related to bitcoins and if they buy and sell bitcoins depending on the stock markets by treating bitcoins as a market trading pair with their stocks than it might be possible that bitcoins can be affected due to the stock market crash.

Stock markets are very old and mature compared to bitcoin. Bitcoin is still in its early days and I think it will take some time before it has some impact on other markets like stock, gold, and oil. Right now crypto is struggling to find its way forward.

Crytocurrency investment is much more than an alternative but rather a big gamble to stock market investor. Most of them opt to invest in a much stable investment for they know how it is better to gain a little bit than to lose big time (Bitcoin's volatility). If stock market went down most of the trades will be disrupted not only cryptocurrency but global economy in general.

Stock market crash can urge individuals to purchase digital currencies as a place of refuge resource just as others, for example, gold. Fundamentally, as it is currently, Bitcoin and other cryptocurrency is ordered as a speculation with exceptionally unpredictable qualities.

In the midst of financial struggle and hardship, the most noticeably awful things get, the more individuals go to things with characteristic worth as opposed to theoretical.

Your guess is very reasonable, because it is true that some investors move their funds from the stock market to bitcoin, when stock
the market goes down. But not all investors do that, some investors want their funds to be safe. While investing in bitcoin very risky
with volatile prices. So some investors choose to invest in gold and property to secure their funds.

I guess the only thing we are here to wait is stock market crash then.
Otherwise I don't see how big investors could consider buying big amounts of crypto

I agree with your point! Stock market crash will greatly affect the cryptocurrency market. Maybe when the stock crash, people will divert their investment to Bitcoin. Bitcoin is currently rising very fast. This is a good sign if you choose bitcoin to invest!

A crash of BTC wont bring down gold or anything that I can think of, maybe some digital markets could be affected.   I know BTC is quite important with parts of trading digital items sometimes, so liquidity could alter those prices.   BTC isnt mainstream currency like a main market but it would without any doubt be altered by a stock market, bond or even commodities crash.   The reason being its within the loop of 'hot money'
   The daily exchange of cheap money from low interest rate regimes like dollar or similar can reverse on a crash or change to bonds over higher risk assets.    Speculation and leverage are operative in BTC as we know there is futures, I use them daily myself to a small extent just for convenience but many would have no choice but to retract BTC long positions if margin calls forced them to raise liquidity.   It becomes a chain reaction and BTC is within that loop at least partially and its volatile enough to be taken off balance by a shift in weight even at distance.

I would even say that the collapse of Bitcoin can have a positive impact on various stock and commodity exchanges, because there will be a transfusion of money from one place to another, in this case I would bet on gold, rare earth metals, lithium.

I think you probably imagined too far and too much about this problem because when the stock market collapsed and there was a problem, it shows that the economy is facing trouble, maybe some investors will divert their operations to crypto but maybe they are still waiting for a comeback like we usually do with the crypto market. And the psychology of investors is always extraordinary, it's impossible to say whether it will have a big or small impact, we can only know that it will have an impact, which level is dependent on the interest of the investor

The Bitcoin market and the stock market are not really correlated, though sometimes there seems to be things that makes them seem as such, like similar price movement which happened earlier. The both are different from each other and are not going to affect each other. Bitcoin is not the only cryptocurrency that have had a similar price movement with stock, other cryptocurrencies have once done the same, it’s kind of a coincidence.

That Bitcoin is a hot money doesn’t even explain anything. So if you don’t mind, can you elaborate on what you mean by that and how stock market can affect the Bitcoin market? Because I don’t see anyway they are connected. To me they are two market that are far off different from each other.

I believe that in this case, as in all others, everything will depend on where the media will lead the crowd.
After all, if someone wants to create artificial excitement related to the fact that the powers that be are transferring all their money to Bitcoin, connecting it with the fall of the stock market, then the crowd will obediently rush so the paths, even if in the end it turns out that this is all fake and manipulation. What is important is the scope with which such speculation is cranked up.

Right now we can talk about it.

Because of the outbreak of corona virus, the stocks in China are affected and it is falling. Other countries are also affected by it since China is a big market and where big trades are happening. As the stock falls there, the price of Bitcoin increases. It is not connected at all, it is just all a coincidence that this is happening. It can affect the market in a way but not most of time.

Yes it seems that people now is choosing bitcoin as an alternative storage for their assets incase some global crisis might happen like wars, deadly diseases or a financial crisis.

It seem that more and more people are starting to recognize, crypto currency along with its revolutionary features and benefits as Bitcoin became the top investment of the decade.

This was the first post to mention that we have not had a meltdown in the market since 2008 or pre btc.

When I get home I will merit it.

I think the market for gold and Bitcoin is the same Nobody's value is stable In time both get out. But the stock market crash can certainly affect Bitcoin as it will increase the investment of Bitcoin and now if Bitcoin is bought and kept in stock a lot of profit can be made upfront.

It will probably affect the Bitcoin when stock market crashes because of the fear of the people. Many people are afraid to lose all of their investment that is why they will get or convert all their bitcoins into fiat to atleast have an assurance that it will not burn their funds. With this massive amount of people converting their btc into fiat, it makes bitcoin price decrease even more. Having the situation said, this really affect the bitcoin in general.

Yes, it can, it can make the bitcoin market positive. even though it is not direct, but when the stock market crashes, people might consider switching their investment to crypto and that can make the crypto market increase.

This is a new market and with time we are seeing new investors coming into the market and the major difference will happen when institutional investors will start investing in the market and for a huge rally we need these huge institutional investors but if there is a global crisis then all the markets will be affected, but if there is a economical meltdown then people might invest in BTCitcoin and gold but we are yet to see the evidence whether these investors will flock into the BTCitcoin market when there is a global crisis.

It can affect positively, in a sense that investors will turn to Cryptocurrency for a better alternative I think these stocks investors are fully much aware of Cryptocurrency trading and most of them already have invested in Cryptocurrency, we can say that they will turn majority of their portfolio in Cryptocurrency.

Do you think this is an occasion for optimism regarding bitcoin? To be honest, I don’t think so. In fact, the whole history of bitcoin has occurred in a growing market and in the absence of global crises. Everyone says that bitcoin is a defensive asset, but is impossible to predict how the price of bitcoin will behave in a real global economic crisis. Temporary drawdowns can be very deep. Plus, regulators taking advantage of the crisis can tighten legislation on cryptocurrencies or even ban them.

especially with low prices, of course, the more discounts you will get. With the sluggish stock market, there will certainly be more and more investors looking for opportunities to keep making a profit, so crypto can be chosen, especially bitcoin which has good trends for the long term.

It is normal that investors will probably gonna look for another investment. They are scared that if that dump continuous, they might lose their money. The only thing that they do is to withdraw their investment when the price drops and invest it on another company for them to be able to earn a good amount of money.

A moot point. I see no evidence that many people choose Bitcoin as a place to store their assets. After all, Bitcoin itself has recently shown extreme instability.
People invested in it in the hope that the value of their assets will continue or increase, but they see the very opposite side.

Although now we can say that those people who bought bitcoin for $ 10,000 can close transactions to zero, but this does not negate the fact that their assets, provided that they were not sold, were frozen for more than two years.

How many people do you think are ready to take such risks to save the value of their assets?

If the stock market crash, that will be a bull signal indicator for the digital asset class and the effect will be a positive one. Nevertheless, I can foresee a good outlook for blockchain project this year

You are right the general phenomenon is that whenever the stock market crashes the money will flow into other asset classes like gold and real estate. As the BTC is also seen as a digital gold even if there are no fresh investments people in crypto who invested in stocks might think about investing more into cryptos which will help in price rise

Why do you think so? Despite talking about cryptocurrencies as an “alternative defensive asset,” in fact they are speculative assets on 95-99%. Accordingly, with the collapse of the fundamentals (stock market), the fall in the cryptocurrency market will be deeper.
The only phase of the crisis when the crypto will possibly grow is the initial one. It seems to me that what is happening in China is the beginning of a big crisis. And crypto, as you see, is growing.

only few of course. If big whales of stock market can't survive the crisis they are facing in their world then what more here in the crypto world where everything is in greater risk, so imagine what even more for small time investors only. Crypto is not for the weak hearted because here it can be "all or nothung" that's why I understand until now the adoption of it is still slow. Nonetheless, I'm hoping that our community will grow further soon despite of its disadvantages :).

i dont think so about crash in stock market will have same impact to cryptocurrency market too. in my opinion based on intermarket analisys , cryptocurrency will be alternative portofolio to switch their money to avoid big losses in stock market. if we see on news about US and Iraq in few weeks ago, many analisys said it will have bad impact to to finance market due the macro economic condition when it happen ww3. and bitcoin price rise  alot till now on. and china condition show us second proved that bitcoin and cryptocurrency good as alternative portofolio for investors while economic has no certainity.

Currently in China cryptocurrency really in demand right now. I think this is due to the epidemic. Many cities are quarantined and residents are restricted in their right to move. The Chinese government is pouring billions of yuan into the financial sector to avoid a fall. And all this leads to a greater demand for cryptocurrency.

Yes you are right  investing in crypto will increase prices  As more investments are made, the demand will increase and the price of Bitcoin will increase  Blockchain is used with Bitcoin through mining to influence stock market crunch Bitcoin. The stock market  however will continue to rise in bitcoin prices.

I agree with you, the theory that people often use is that the collapse of the stock market will create the migration trend of investors there, these investors will shift their investment into potential or stable assets such as gold and bitcoin but the probability for this theory is too low. Because the structure of the stock market is quite large, it has a combination of countries around the world, migration only occurs unless there are global crises, but this seems to have been impossible since many years, the stock market was very stable, up and down continuously to help investors stay longer

Maybe this seems logical, of course if we put ourselves to the shoes of investor we would probably move our investment into another platform to save it. For example, if we have gold and the market will be down we can move it to bitcoin or other crypto to save it. It was common sense.

There is no relation between the two markets. Considering the fact that many professional speculators and investors trade bitcoin in secret (no mather the evolution of stock market) they will never go public to admit bitcoin as good alternative of the stock market.

Undoubtedly, none of the players in the stock market will officially and publicly recognize the benefits of cryptocurrency and the benefits of investing in bitcoin, because it will undermine their own activities in the stock market, as well as the support of a practically competing party, because such statements always attract new investments in the cryptocurrency market.  But since there are enough anonymous users among Bitcoin owners, I’m sure that all these stock market players have a certain amount of cryptocurrency in their secret pockets, including bitcoin.  Of course, we will not talk about complete skeptics, but a significant part of the progressive public understands the possibility of the superiority of the cryptocurrency market during the fall of the stock market.