Bitcoin Forum

On this weekend the crypto market goes down.  Will it predict the stock market to go down on Monday? 

Like what I have said previously in related posts Bitcoin and the crypto market has no direct correlation to what is happening in the stock market right now. While we both are being the demand for its supply the stock market is affected by external factors outside of its demand and those external factors are of the company itself and the economical performance of the country itself, crypto on the other hand is less affected by those and mostly affected by the direct demand for it. That's why we barely see the crypto market and the stock market have the same or nearly identical movement. So basing your trade just because one market is bullish or bearish is something a careless trader would do, simply because it will be hugely inaccurate.

I'm of the same opinion as @Harlor here, in that there doesn't seem to be neither a cause and effect nor a correlation between the crypto and the stock market. This can easily be tested by making a stock market prediction but if one was to follow crypto and predict the stock market will realise the relationship does not hold true at all.

This makes sense because if this correlation were to exist traders would instantly work that out and always apply it, thus getting huge bucks every time.

Bitcoin and even other cryptomarket doesn't affect the stock market as both happens in different community and have different trading and market systems. Also, Stock market's system doesn't depend on the crypto market and vice versa. Therefore, it is easy to say that whatever happens on the drastic decrease of the crypto market would even make a little decrease nor dent in the stock market.

This should be always in mind or every people especially those new in cryptocurrency.
Maybe they have some thoughts about this because they tend to compare always the the prices or charts of stock markets or cryptocurrency, although sometime you can see some part that has similarity but overall for me, nothing.

Well the problem here is mostly about how mainstream news always try to connect everything surrounding Bitcoin, they always try to relate it to current events, price movements, and other news so that they try to be relevant in the industry. The negative thing about that is it misleads a lot of people as well as make them assume that everything has a relation but the truth is it doesn't have one.


Like what I have said above I have a feeling that these newbie traders have this "stock market's movement is related to the crypo market" relation on reading a lot of news that's why they might think that they do have a connection since the have been mislead by the news. This won't change until these newbie traders try to educate themselves and at least be observant on what they are seeing rather than believing it instantly.

I think one of the reason why Bitcoin goes down and up is because of the newbie trader, because of their mistake trading it caused it to bitcoin to be volatile. But not only those newbie Trader cause of falling but also those mistake trade of some traders, we can't blame those trader because all of us are also do mistake sometimes. I think we should more careful everytime we trade to lessen the mistake and risk.

Under normal circumstances the stock market and the market of cryptocurrencies do not really show too much correlation among each other, each one moves according to their own dynamics and do not influence one another that much, however what we are seeing now are nothing but normal circumstances, the fear of the coronavirus has spread and while it does not seems to be as dangerous as some other diseases it has created panic around the world and when that happens people prefer to hold cash instead of speculative assets and this is making both markets to go down.

Most of the people thinks that crypto market and stock market is a seesaw lol. If the other is on top the other is at the bottom, vice versa. Well maybe because there are some sort of chart comparison whenever the other market is moving drastically and so people tend to predict. What really affects the price is the external factors and events like the corona virus, look at both markets they are both downed.

The crypto market is independent of the stock market but has some indirect relations. For example, if a person is selling his stocks and has money left to invest then he "might" invest in crypto.
Not everybody will do this thing but some might. Also, some people who have invested in both the markets might take out all the money from his investments in both the markets simultaneously if he loses money in any one of them. So in my perspective, though crypto market is independent of the stock market, sometimes they do have some indirect correlation.

I think the stock market is related to the situations and conditions that happen in real life. As we see now, the world now has a concern with the coronavirus, and I heard that affect the stock market, and make the stock market get a red candle, but I don't know if that is true or not. But the stock market doesn't correlate with the crypto market because it's running in different ways. Perhaps, you can compare between the gold market and the stock market, and I think that both markets will correlate.

But we don't know the truth, and we can only guess if between the stock market and crypto market correlate as you said.

I doubt there is too much of a correlation but we can't say it is totally unrelated neither. Remember last years start, the stock market crashed like hell and then the price of bitcoin crashed like hell as well, then at the April or so the price got leveled out in stock market and it did here as well, now because of corona the dow jones are all going down and there is still some sort of drop in bitcoin as well.

I am not saying they are fully correlated and they always act together because they don't but there are some few times when it does and you will never know when it will act together and when it will not act together unfortunately, it is just a mystery to all of us and we only get to learn it after it happened which it doesn't help us out at all.

As far as I know there is no proven correlation between crypto market and stock market. Cryptocurrencies are not in direct connection with stock market and factors that influence these two markets are completely different. In fact activities in real world, to say so, like financial and economy situation still doesn't significantly influence crypto market.
So, if happens at the same time that movements in stock market and crypto market look similar and connected that is to my opinion pure coincidence.

Stock market became as volatile as bitcoin recently, I mean it used to be such a stable thing but right now looking at it, it has a very stable long periods of time (like bitcoin) and than does something crazy as well (like bitcoin) which I can't fathom what shareholders must be thinking since they got in for a non-volatile long term thing with stock markets. Maybe bitcoin is not connected to stock markets but stock markets are connected to bitcoin? Who knows.

I personally have seen it drop like hell 10+ months ago or so and I have seen it do it again now as well and both times bitcoin went down beforehand and that was like a warning I suppose, or if you took it as a warning you would have been safer in stock market. So, I am not entirely sure if we can call them totally unrelated.

The bitcoin and the crypto market doesn’t have any correlation to the stock market, because the stock market is for the external factors only like the economical performance of the country. So that if the crypto market will go up or down it wouldn’t affect the stock market. Crypto market and stock market move according to their rules and it doesn’t influence each other.

I am afraid it became a lot like that nowadays. Normally back in the day it wasn't like that at all, it was actually correlated in reverse where when stock market crashed the bitcoin price went up. For some reason bitcoin was triggered when people withdrew their money from stock market, even if that didn't mean they put that money into bitcoin at all, it was still going up no matter where that money went to.

However, lately it has been more correlated directly where stock markets went down and bitcoin went down with it, no idea why it is like that or not but that happens more frequently nowadays. I hope soon we will actually have reverse again because today was a really really bad day for stock markets and it affected us a lot. I don't want to see stuff like that again hopefully.

While Bitcoin fell to $ 5,100, I immediately drew attention to the stock market and commodity market quotes.  I made sure that almost everything falls in price.  Even oil has fallen in price by almost half.  Of course, the United States finds leverage to somehow preserve the value of its national currency, because unlike the dollar, the national currency of my country has significantly decreased in value.  I believe that there are very important points in the financial and economic world that affect the current situation.  Although so far I have blamed speculators for manipulating the cryptocurrency market, But it seems that they have nothing to do with it.

Most likely this has to do with the fact that in the past the majority of the people that were invested in bitcoin were libertarians, so when the stock market went down they decided to invest in bitcoin as a way to protect themselves from those movements but as bitcoin has become more popular then the kind of person that invests in this market has changed and now it has the same profile as those that invest in the stock market, so when the stock market goes down bitcoin goes down with it showing a higher correlation to it than in the past.

This might not be applicable each of the time. There are times when people move their money from stock markets into crypto markets and this should derive the price for crypto markets on the peak and leave the stock markers on the dip. This would then be opposite than what you said. Stock markets depend on various factors which might even include the working of the company behind the stock whereas there is nothing backed by bitcoins so the price for bitcoins would entirely depend on the TA.

TA for stocks and cryptos would never be on the same line as they both have various possibilities to work on an opposite direction.

Actually there is no relation between the crypto market and stock market but both of them were driving through people's emotions but I don't think most of stock investors really analyse crypto market conditions so it won't have the effect of stocks but if stock market fells then it might affect crypto price movements in the same direction.

Crypto markets and stock markets might not always run simultaneously but they might work on a constant graph in conditions like the current ones. In the current market conditions, the markets are dependent on the fundamental analysis rather than technical analysis. Usually the markets depend on 2 types of analysis consisting Technical Analysis and Fundamental Analysis.

Forex and crypto markets might work on a same graph in fundamental analysis but they would never be same in case of technical analysis. Both the markets are entirely opposite but a common market crisis like the current ones would make both the markets work on a same scale. So yes, perhaps the forex markets would also dump on this monday.

Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies,
 which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

Institutional investors hedging their risk played some role, but I think the overwhelming panic from world markets had a strong effect. I have always said BTC would suffer in any economic crash or recession scenario, and that's exactly what happened. High risk assets like BTC got massacred.

There were also some additional factors that made this crash especially bearish:

• The Bitmex DOS and mass liquidation (https://cointelegraph.com/news/bitmex-denies-it-made-bitcoin-price-drop-to-37k-after-going-offline)
• The timing of the drop coincides with large movements (assumed to be liquidations) by the PlusToken wallet fraudsters (https://cointelegraph.com/news/bitcoin-drop-due-to-13k-btc-plustoken-scam-not-coronavirus-analysts)

It happens many times already. I mean when the stock market booms, cryptocurrency tends to follow, and it's very evident in the current situation where the stock has fallen so hard and so does the crypto market.
Though there were some other reasons for this crash (e.g plustoken scam and dump), but the pandemic is surely one of them.
I'm not sure but it seems like Bitcoin has a slight correlation with the economic status.

Its been said for how many times that previous markets like stocks/forex etc. has nothing to do with crypto market or does have correlation when it comes to price movement.
They are on different market or factors that do affect its movements.We know that crypto is very volatile and very unpredictable one compared to stocks.For now
we can say that they might be similar in times of crisis.We cant point out accurately but somewhat we can presume that its been affected by the same reason.

It look like that even Institutional investors are heavily invested in Bitcoin and other Cryptocurrency, the fluctuations of the stock markets made them liquidate their Bitcoins in order to cover losses cause some of them might have debts to pay, others are margin traders. So that's why the price plummeted hard this past week.

I heard sometimes ago who stated that bitcoin be like traditional market with the reason bitcoin and traditional market were decreased.

I don't have much knowledge about traditional market like stock and etc. But I just have an opinion that these thing is  different. Bitcoin will have its own market, we know its volatility who didn't have by stock exchange.

That was just coinsident, the decreased price was affected by corona virus and the people just scared so as they sold the asset and move to the place that they consider is safe like gold.

We must also not forget that in times of crisis like the one we are going through even good assets go down in price as people try to recover their losses by finally realizing their potential profits in other assets, so someone invested in the stock market which was losing a lot of money could have no other option but to sell his bitcoin to recover some of his losses, this in return makes the price of bitcoin to go down as well as many people do the same generating the crash we saw.

I don't think any trade marketplace run that way. Bitcoin or crypto market never depend on stock market and stock neither depend on bitcoin market. Crypto and Stock markets are totally different from each other. Stock is not too sensitive market like crypto currency. Crypto currency is more complex than stock market. So it's totally useless predict in my thought. Read this amazing article (https://vocal.media/theChain/10-major-differences-between-crypto-and-stocks) you will be find why they didn't follow each other.

It is already said that it has no connection at all.

Some stocks might be related to cryptocurrency but it is not directly related and will affect the market as a whole. Some say that it is connected to stock because when the stock fell, the market follows but in that case, I think that is just a coincidence. If Bitcoin's price fell, for this reason, that would be the same but usually every time different reasons with the stock market.

for my point of views  is YES,because i believe that Bitcoin holders also looking at the economic status and that can be checked by looking at what the stock markets doing so basically we are going with the stocks now as the reason is obvious.
but anyway the whole world is struggling now because of the Virus effect so let us look at the Good thing and not the bad,buy more for cheaper price and sell soon.

The way I see this is that of correlation. People take out money from the stock exchange and put it in cryptocurrency. Investors believe it is a safeguard for their investments. But this at the moment has not held because people are selling off their bitcoins for food at the same time as selling off their stocks because of coronavirus. So the two industries are falling at the same time.

For me yes of course, when Bitcoin price is go up and down the market is also moving, and I think they are related to each other. If you notice when the Bitcoin price going down the market and all crypto is also going down too, but when its goes up you will see the matket is also changing and the all crypto is also rising one by one.

Economic conditions influence all speculative assets, like gold, stocks, crypto, etc. Why? Because people put their "free money" to buy these assets. When the availability of free cash increases, these assets' prices would increase as well, and vice versa. The availability of free money is influenced by inflation, interest rates, GDP growth, etc.

However, it may not be a perfect correlation, especially in a good economy, because people have more investment options available.

Said by whom? You? Are you the ultimate truth?
How then do you explain today's growth that followed the rise in oil prices by 11%? This is probably just a coincidence, and the crypto market lives its own life separate from the rest of the world. It’s ridiculous.

It goes up and down according to stuff going on and sometimes when something happens it can affect both stock markets and bitcoin. Just because there is this thing that affects the prices of stocks and the prices of bitcoin doesn't mean that bitcoin is related to stock markets directly.

Just to give an example tomorrow there could be bomb going off in some big major city and stocks could go down there, that doesn't mean bitcoin will go down as well, or maybe tomorrow recession hits hard and prices go up and inflation happens, doesn't mean bitcoin has to be affected. We almost had a war, bitcoin wasn't affected. So, there are times bitcoin and stocks move differently, and times when they move together, pandemic is just one of the reasons why they could move together.

I don't think that the worth of Bitcoin increases below and below the stock exchange Because Bitcoin doesn't control anyone it depends on the market. it's determined by decentralization and market whales The stock exchange is typically related to the economy company If the economy of any country is disrupted the stock exchange goes down and it's nothing to try to to with the worth of Bitcoin.

Both markets were crashing during the time when it was pronounce Corona is already pandemic, I say both markets correlates to the fear of the situation and uncertainty. Cryptocurrency are growing as of now, I am not sure about the stocks market because stock market of some countries are being stopped. The traders in stock market are being held to stop the shortselling while crypto market goes on all year round.

Nobody suspected it, you can't just blame people for not seeing how stock markets would be correlated to crypto.

It wasn't really correlated before, why it is now we don't know. However we are in a situation right now when everything loses, not just bitcoin or not just stocks but EVERYTHING is losing, hell even house prices are down right now, HOUSE PRICES, why would a house that worth 100k yesterday would worth 80k today?

I do not understand whats going through peoples minds, I have no clue how this finance crisis things works at all, I am not a financial analyst or anything or I can't even read charts so I don't know why but seriously, right now there is only that small mask type of thing that gained value, aside from that there has been nothing at all.

Previously at this year of 2020, there are a lot of things happened in just this January up to this March and one of this is the market price of the stock market because there is a shocking event happening and that is the spreading of the virus rapidly and some of the investor and play safe and pull their money into fiat currency and use that money to spend into the things they need like foods, clothes and hygiene to avoid the spreading of the virus, until now the market price of the bitcoin fall down into 3.9k dollars and recovering and becomes stable for a while into 5k dollars and from the previous weeks the price again becomes huge because there is an investment that happens and the profit we have today is over 6k dollar price of the bitcoin. Still, we cannot tell what happens next to the market price of the coin because still, it depends on the economy if they are trying to support the use of cryptocurrency and make a lot of contribution to the stock market. It takes time again before becomes stable and reaches the previous market price again.

This isn't about correlations, at least as we normally think of them. It's about market sentiment and investor risk tolerance.

When an economic crash occurs and the market anticipates a recession, virtually everything crashes except for stable fiat currencies and low risk bonds. It's a global flight to safe, risk-off assets.

The incident last week was probably driven by cascading margin calls.
Once the dust settle, that is after the coronavirus is beaten and after central bank completely intervened with the markets - it would be clearer on how correlative bitcoin is to the stock market

Very clear advantage of crypto and why people should shift to trading crypto now.
However, on the effect on the pandemic, I guess crypto would also suffer the fall like the stocks and since our economy is in big trouble now.
It's unclear as to when the situation will be under control so people are in panic, investing is not good for them.

With the money flowing in crypto as it's definitely the most unstoppable market now, hopefully this brings positive effect in the long run.

Agreed, the correlation is not perfect but it is obvious that when the economy is doing well and there is a lot of free cash available then people are going to take more risks than they would under more difficult circumstances, and now that the stock market has crashed and we are officially in a bear market then other speculative assets are going to go down as well as people prefer to have cash in hand in the case the situation becomes even worse than what we have right now.

Bitcoin price movements up and down there is no correlation at all with the stock market. Because the stock market is moving based
company conditions, the world economy and the politics of a country. Unlike the cryptocurrency market, it moves based on supply and
demand directly from investors. So if you find the price movements of crypto and stock markets look the same, it is just a coincidence.

Many people thought it was correlated because of this drop, many people acted as if stock market was basically equal to crypto market, many of you talked about how bitcoin moved depending on the general economy and basically mimics it or whatever. What do you guys think now? There is no recovery and everything still sucks but bitcoin is up. Do you think it is correlated now?

Do you still believe it mimics the market? It obviously doesn't. Yes, there was something major and huge and that is why everything got affected, there was nothing in the finance world that wasn't affected, so we got affected by it as well and moved down, but look at us now, we are back to being a bull and strong market yet again, just stop being afraid of bitcoin market because in the long term it is always amazing.

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Well the problem here is mostly assume that everything has a relation but the truth is it doesn't have one.
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Well, this just makes us trade believing that bitcoin have relation to others. But it seems, i am wrong. I need to reflect from this first before anything else.

There is nothing to reflect here that the price of bitcoin never correlates with the bottom and the correlation with the stock market In both investments the stock market usually controls the bulls of the market. Bitcoin is under the control of none Demand increases as prices rise Demand decreases as prices fall It will depend on the investment.

The correlation does not need to be perfect, there are some studies showing that recently there seems to be some correlation with the stock market and in my opinion that makes sense, as this market gets more popular and different traders and investors decide to invest in cryptocurrencies and the stock market then if the stock market crashes then cryptocurrencies could crash as well as those investors decide to sell some of their bitcoin and altcoin holdings to cover their losses pushing this market downwards as well.