"bitcoin goes up when stocks go down"

[ultimatesky]

Maybe it is a coincidence, the financial markets are very insecure. First the euro, then grexit then the US debt ceiling.

You can't blame every rise of bitcoin because of a outside factor. What if an big investors actually ask some fellow investors to participate?

[zimmah]

That would only happen if the people that get out of stocks when they go down actually put their money in bitcoin at the same time (or atleast part of them).

Also, bitcoin volume and marketcap is just a drop in the ocean compared to the stock markets, so the effect would be much more noticable if this was actually happening.

Oh it will happen at some point.   Just not yet.

[avw1982]

I would think it depends on what kind of stock is going down. If it is in the tech sector then I can see it dependant on that but if it due to oil and gas prices going down then I can't see a pattern with that involved.

Its not a reason I think, We saw before Chinese banks in the problem that time We saw the biggest price raise in bitcoin and Bitcoin price is consider by  its demand this normal for fiat currency too.If people start to utilize the bitcoin more than USD. Then rate will raise like a sky.

[Sibtalf]

You might think the bitcoin price rise recently while the stock price go down. But for long term, they both rise.

[vendetahome]

i guess it means that bitcoin can be a very successful and strong currency that can even replace the money we have nowadays lets hope there wont be a crash in the bitcoin price

[oda.krell]

Over the entire (Bitstamp) history, the correlation coefficient between daily S&P500 and BTC/USD is ~0.65, which roughly means: moderately strong positive correlation.

In that sense, OP is right to point out that if there is any evidence so far for a correlation between stock market performance and BTC, it rather seems to be a positive relationship, not a negative one (i.e. "BTC is trending with stocks, not against").

However, the BTC history is rather short, and the above correlation is not extremely strong, so I'd take it with a grain of salt. More interesting perhaps is looking at it from a more fine-grained perspective: correlation between the two markets over a rolling time window of some reasonable length, say 200 days:



Under that view, it seems the two markets were rather strongly positively correlated until around mid 2014, followed by a period of negative correlation. I wouldn't pretend to know whether that's only a fluke or not (perhaps due to the deep BTC bear market), but we'll probably only get a real answer if and when stocks enter a real bear market and we get a chance to see whether BTC follows this trend or resists it.

[Funny]

I've heard this all over the forum, and it just doesn't seem to be true, according to the chart of DJIA vs Bitcoin. In fact, it might be the opposite.

What's the connection between BTC and the Stock market? There's no real visible link here to me.

[TERA]

I've heard this all over the forum, and it just doesn't seem to be true, according to the chart of DJIA vs Bitcoin. In fact, it might be the opposite.

What's the connection between BTC and the Stock market? There's no real visible link here to me.

That's the point.

[Sibtalf]

I've heard this all over the forum, and it just doesn't seem to be true, according to the chart of DJIA vs Bitcoin. In fact, it might be the opposite.

What's the connection between BTC and the Stock market? There's no real visible link here to me.

That's the point.

The scale of the plot is different for Bitcoin and DJIA. I just see them rise similar, but there is deviation recently.

[Feri22]

I think the correlation is just a coincidence and that soon stocks will go down (china crashing as hell) and btc flat or even higher...

[maokoto]

I do not think there is a big correlation in this. It is true that some people may run to Bitcoin when they see economy falling, but many (big) investors do not know about Bitcoin or simply do not trust it. It might have some influence, but not such a strong cause-effect.

[Sibtalf]

I think the correlation is just a coincidence and that soon stocks will go down (china crashing as hell) and btc flat or even higher...

If the fiat inflation is reduced or lower, or that the fiat value is increase, there is a possibility that bitcoin price will drop.

[Newcoins2020]

It is also how it is difficult to obtain the more value which is called.

And if a lot of people can get to it, the less it I think. We do not have the self control.

[Pollak]

Right. If bitcoins obtain little than the price goes up because it is so difficult to obtain and become bitcoin so worth. So it makes sense that it is more valuable.

[MF Doom]

a better correlation seems to be "btc goes up when the threat of capital controls becomes reality".

This seems to be the case, as capital controls lead to fear and uncertainty, and both of those tend to lead some to btc

[Altynbekova]

As far as I can work out there is nothing set that actually affects bitcoin, the stocks from what I have seen don't do something, it is going to happen with the price chances or it won't.
We will see it at the end from the stocks, I don't think its true.

[~Bitcoin~]

a better correlation seems to be "btc goes up when the threat of capital controls becomes reality".

This seems to be the case, as capital controls lead to fear and uncertainty, and both of those tend to lead some to btc

i think you are talking about those chinese move on november. Yes we need some more capital control rules also in us and europe.

[bajing]

all stock market today is down but bitcoin slide, i think bitcoin is have own way. so happen with stock market,oil, commodities, etc. does'nt affect to bitcoin

[Erkallys]

I think that it would be more : "the worst the situation is, the higher the Bitcoin price will be". If this is true, they're great times ahead my friends !

[MF Doom]

I think that it would be more : "the worst the situation is, the higher the Bitcoin price will be". If this is true, they're great times ahead my friends !

thats true! there is another thread on here where someone pointed out that economist Martin Armstrong is now advising people in all of europe to open banks in the USA, because some countries (Switzerland I believe) have already approved bail ins