Are declining stock markets good or bad for Bitcoin?

[BitcoinArsenal]

In the past few days many stock markets have fallen worldwide. There are many voices that expecting a strong correction and a coming bear market. I wonder if falling stock markets are good or bad for Bitcoin. Normally, money that is no longer invested in stocks is to flow into other assets. Bitcoin with its rapid rise would certainly be attractive. What do you think?

[VC George]

Many banks are signalling their customers about a correction in the coming Autumn. As we've seen in the days before & after the Brexit vote, people didn't accumulate big amounts of coins but this one's kind of different. Let's suppose that September 4 closes with a -40% in most stock exchanges, most probably a minority of investors will try to secure their assets buying Bitcoins, Gold and even silver, but the majority will rush to liquidate their stocks for USD.

Fiat still rules the world

[Iranus]

The vast majority of investors will just move their holdings into fiat.  They'd prefer to have something which typically only drops by 2-3%, instead of keeping the risk of something which is likely to have dropped loads when they want to cash out.
You can only expect Bitcoin investors from a bear market if they're diversifying loads into many different assets including gold as well.  Generally though, you're right that stock market problems are bullish for Bitcoin IMO.

[darkangel11]

I'd say bitcoin is mostly independent of stock market and stock investors don't switch to BTC at all. Some of tham might have it in their portfolio, but sust as a side investment.
If someone is familiar with BTC and likes the volatility of a crypto market he'll just stay here and keep trading and if he doesn't he'll turn to stocks, real estate, startups, whatever. There won't be a big money flow from stocks to cryptos. Stock investors will prefer to hold cash and be able to go back into stocks when the price is right.

[marketprice]

As someone who has been active in the stock space for years, I find Crypto to be a much more interesting playground (active since 2013). CNBC is downright boring to watch these days because they are covering dinosaurs (including Apple and Facebook). The current financial system will not see Bitcoin or other cryptos as a real threat until it is already at their necks and they are displaced. Lets take the Blue Apron IPO yesterday, watched it open live, felt like I was looking at a dated system that was rewarding a company for past performance in a space that has already shifted before its feet. Investing in an interesting ICO is much more palatable for me these days, but I am risk averse and can stomach going down with the ship.

[eaLiTy]

The stock markets are down and it is expected to go down further,there are rumors that there will be a economic crisis looming ,the fact is no one can predict before hand whether there will be a crisis or a recessions and will investors move their assets to bitcoin in the mean time,it is highly unlikely we could see that trend for now,it might happen in the future but not at the present situation.

[lizardbtc]

Nobody knows but I think that they are all similar, as some investors deal within the market and they have invested into bitcoin. Plus we all know how big is the uncertainty about bitcoin, it could easily crush. I doubt that investors will move from stocks to bitcoin within a second it will still need more years for this and if it would happen in the future.

[South Park]

In the past few days many stock markets have fallen worldwide. There are many voices that expecting a strong correction and a coming bear market. I wonder if falling stock markets are good or bad for Bitcoin. Normally, money that is no longer invested in stocks is to flow into other assets. Bitcoin with its rapid rise would certainly be attractive. What do you think?

Since bitcoin runs against the interest of the banks and governments then I think the most likely scenario is that if the world economy does perform badly then that will benefit bitcoin, look at the countries that had economic troubles in recent years, bitcoin is flourishing there so I think it is to be expected that bitcoin will do well in an economic crisis.

[European Central Bank]

if people's investments fall they're gonna look to safeguard their money. crypto is not the place to do it. it'll be bad for bitcoin. bitcoin has existed throughout an epic global bull run. it hasn't known anything else. it'll be interesting to see what it does when the party finally stops.

[The Sceptical Chymist]

Declining stock markets--say what?  I guess I only follow the US, but the Dow & NASDAQ have been on a tear lately and certainly haven't been going down.  Are worldwide markets down?

There might be an argument to be made that people who take their money out of the stock market (thereby causing it to decline) may put some of it into crypto, which would be an argument for an inverse relationship.  I just don't know if that's true or not.  Crypto is a strange beast and I don't know how much wall street money is flowing into it.  Precious metals tend to go up as the stock market goes down, but those are seen as flight-to-safety investments.  Bitcoin is certainly not stable enough to claim that.  Lately it seems bitcoin has been increasing right along with bitcoin. 

[dissident]

a quick look at a couple of charts of European indexes shows a normal technical selloff after a nice run.  In fact most of them are near support levels now and shouldn't go down much more in the near term.   Meanwhile cryptos are rolling over here and getting ready for another selloff within the next couple of days which will take the total market cap below $90 billion near term, and we could get as low as $65 billion in the next month.

I don't think it will affect them either way.   I would safeguard my money in crypto, if the price was right. If bitcoin ever gets back to $500 again after a year or two of no volume action, I'll make sure to get all in. I don't discriminate and will get into any investment I think is attractive at the time.

[abercrombie]

Declining traditional stock market is GOOD for bitcoin.

Bitcoin is a hedge, thus it's a doomsday meter for the legacy financial markets.

[JL421]

Stocks have no connection with bitcoin at all. CryptoCurrencies is a totally different platform than stoxks. The main reason for the increase is stock is mostly on different news about the business. While in crypto market other than ethereum news doesn't affect the price. And the people who are aware of stock market may not be knowing anything about crypto world. So it has no connection with bitcoin at all

[RoommateAgreement]

usually when something like that happens the money goes into MULTIPLE other things. in the past years bitcoin started to be one of those things but it still is a small portion of the choices investors make. mostly because it is not regulated like those other assets.
in any case there will be some fresh money coming in but i wouldn't expect a big rise out of it specially with all the drama that is going on!

[BitcoinBallerina]

I would think declining stock markets would be good for Bitcoin. People panic sell and look for other opportunities.

[magneto]

In the past few days many stock markets have fallen worldwide. There are many voices that expecting a strong correction and a coming bear market. I wonder if falling stock markets are good or bad for Bitcoin. Normally, money that is no longer invested in stocks is to flow into other assets. Bitcoin with its rapid rise would certainly be attractive. What do you think?

I can't find a definite correlation between stock market indexes and bitcoin, though it makes sense to say that when stock markets go down as a whole then bitcoin will go up somewhat because people are getting their wealth out of company stocks, and by just keeping the cash there does not yield them anything. So bitcoin is one of the logical alternatives. But bitcoin is ocmpletely unknown to most stock traders anyways, so until then we won't see as strong a correlation as say, USD and gold.

Declining stock markets--say what?  I guess I only follow the US, but the Dow & NASDAQ have been on a tear lately and certainly haven't been going down.  Are worldwide markets down?

Not exactly the biggest crash but around 2%(https://www.google.com.au/search?q=dow+index&ie=utf-8&oe=utf-8&client=firefox-b-ab&gfe_rd=cr&ei=RTVXWYiYHuTc8weVuoqYBA). And that's a lot for the stock market, 2% sounds like stability in bitcoin but for Dow, that's a whole lot....

[Amph]

as it is now bitcoin follow its own pattern, because until all the issue are fixed, the value will not accelerate regardless of what is happening outside of this world, in the forex or stocks world

all those things can only help the bitcoin value to grow but only after the important problems are solved, however we might get the standard pump and dump like has happened with grexit and all the other financial news regarding the "fiat money"

[carlisle1]

well even the have different target but still stocks can affect investors, and two things whether they will place their money into crypto and try to gain or full everything out and push crypto investors to follow the trend of removing their investment and wait.

[crazyivan]

In theory, money could flow from insecure stock market to BTC. However, the problem is crypto economy s currently also very unstable due to pending block size changes.  So I think something else might profit from this, maybe real estate markets.

[jayc89]

In theory, money could flow from insecure stock market to BTC. However, the problem is crypto economy s currently also very unstable due to pending block size changes.  So I think something else might profit from this, maybe real estate markets.

Technically if people begin to see the stock market crash then the people that have that stock would start cashing their stocks out so they will cause the stock market to drop down further. Stock Markets are very dangerous because they don’t really have as much certification any more via paper, only a few people get them so the other people that do things electronically own nothing.