Of course, this will affect the cryptocurrency market. Capital is already leaving the stock markets. Perhaps one of the reasons for the collapse of the Dow Jones index is associated with the flow of capital into the cryptocurrency. The US economy depends on the demand for the dollar. This demand is declining. The crisis in America is a matter of the immediate future.
Any flows from DOW to crypto, at present, is at best minuscule. The Dow would need to drop significantly more for stock / bond investors to consider seriously the crypto markets. Cryptos are still way too volatile to count as anything but gambling, and there are not enough hedging products to be a true alternative asset class.
That said, I can see Dow plunging back to low teens. Never, in the entire history, has so much growth in the Dow been financed by all forms of credit. The levels are unsustainable, and just a minor correction in the economic output, could easily trigger an avalanche of yet-unseen proportions. When (not if) that happens, and if cryptos are still strong at that point in time, then we will see some major redistribution.
