what would be relationship between bitcoin and stockmarket?

[Derek86]

If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

[avikz]

If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

There is no correlation at all! Bitcoin is nowhere close to traditional asset classes and traditional investors don't really like bitcoin as an investment. The main participants of the Bitcoin market is tech-savy millennial who likes to take risk and make big out of it, which is definitely different than the investment ideologies of the traditional class of investors. If you try to find correlation between stock market and Gold, then it's valid because Gold has been serving as a hedging instrument for the traditional class of investors. But bitcoin has not yet matured to that level where it can provide a safe hedging against stock market's movement. We still have a long way to go! 

[Artemis3]

If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

This has been answered before. The answer is no. It tends to be the opposite, but not quite. Bitcoin is similar to gold, some investors seek refuge there when the economy goes bad. Bitcoin is not affected by the state of the economy, just like gold.

[sovie]

I don't think there are any relation b/w bitcoin and any other trading platform. Stock market is very much mature and fundamentally driven compared to bitcoin market which is most volatile and speculative driven.

[ChrisPop]

I don't see any meaningful relationship between those two. The only thing I can think of is the same with what will happen if a crash on the stock market will come. Implicitly that will impose most probably an economic crisis as well and we all know that when that happens people are more resilient with investing their money. Moreover they will try to sell all their remaining assets (including Bitcoin probably) to get as much cash as possible. That's how fear operates on people unfortunately.

[NeuroticFish]

There could have been a few cases maybe there was a relation between the two. But a few drops don't make the ocean.
People have claimed they've found the rule. But at the end they were contradicting each other - some were claiming that bitcoin and stock go together, others were claiming that they go in opposite direction. So no, there's no relationship between stock market and bitcoin price.

[figmentofmyass]

This has been answered before. The answer is no. It tends to be the opposite, but not quite.

there is no direct correlation. it's not like the strong ~80% correlation between gold and the australian dollar, which exists because gold mining/minting/exporting is an integral part of australia's economy.

i do however believe there is a long term, indirect correlation between the two, based on macro investment cycles and global risk appetite. the cryptocurrency market is indirectly related to the technology equity market in the sense that they draw from the same pool of high risk/high reward speculative investors.

this may be why tech stocks and bitcoin have both been in a raging bull market for the last decade. i believe they will both fall together in the next recession too for similar reasons.

[CryptoBry]

If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

This has been answered before. The answer is no. It tends to be the opposite, but not quite. Bitcoin is similar to gold, some investors seek refuge there when the economy goes bad. Bitcoin is not affected by the state of the economy, just like gold.

There is no established connection or correlation between cryptocurrency market and stocks. However, as noted, there is that tendency that if stocks are doing well cryptocurrency may not be, and I am assuming that it can be because the focus will be less on cryptocurrency as an alternative investment vehicle once investors are doing well in stocks or similar assets. What is an established fact is that when there will be disruptions or turmoils economically or politically then cryptocurrency can be doing good. It means that bad news can be good news to cryptocurrency especially Bitcoin. However, this can just be a temporary thing as years or decades from now when the market has already expanded so well there will be less influence with the bad developments all around the world.

[Yaunfitda]

This is just probably a theory so we can't really proved that there is a connection, if indeed there is one. Bitcoin can go up anytime but it doesn't mean that stock market will spike as well and vice versa.

So it's inconclusive, we even don't know if we have the same sets of investors. We all know that majority of stock traders doesn't like bitcoin or crypto in general because it is unpredictable. With that said, I don't think there's any correlation whatsoever.

[the rise]

bitcoin is not connected with the government's active economic policy sentiment, only affected by the government's attitude towards crypto. bitcoin also does not correlate with gold and issues related to interest rates. bitcoin runs in different corridors and moves independently with more speculators who are only involved with bitcoin and altcoin developments.

[ReiMomo]

There's no correlation between them because crypto has a lot of whales while the stock market is dont have. Also crypto is highly volatile and most traders are this what they like. The stock market was backed by a company and they are all centralized one while cryptos are decentralized and no one control with this but it can be manipulated. So, I dont think there's a relationship among them.

[DreamStage]

There could be a relation between both parties in terms of equal currencies.

Assuming right now there isn't any so that's impossible to have.
But in the future let's say world has a unique currency (bitcoin) for everything.

With only these aspects you will be able to relationship both as they will become 1 and only environment.

Currently that isnt possible because stockmarkets only accept fiat. Unless you trade btc -> fiat and buy stocks ofc.

[pooya87]

absolutely nothing.

bitcoin has always been a stand alone thing that doesn't take any effects from any other market (not just stocks market but anything you can think of). it is a 24/7 global market and it has been going up and down independently for the past 10 years. you can see the history, there are times when people find some exception where an up or a down coincides with another market and they get excited but then when you look at the bigger picture you can see that there is no relationship at all.

with that said, we can't deny the fact that things that could affect another market "drastically" could also affect bitcoin. what i explained above is the normal circumstances that for instance if stocks market crashed nothing would happen to bitcoin. but in special cases for example a recession where stock market not only crashes but it does it hard, then bitcoin could be affected. there are different speculations about what could happen, my opinion is that bitcoin would thrive in a recession and would go up.

[jossiel]

I used to believe it has before but I'm not good with economics and analysis so I can't justify it. Because I've just based the market status last year of how it looked like.

2018 was a bear market for cryptocurrencies so do it was with stocks market. But I've understood it that there's really no correlation at all because there's no proof that they have connection.

[aomakun]

each investment has a different place, so it will be different too, the stock is usually invested from a company that can be called traditional, while Bitcoin is more in the field of internet where the majority of users are new people. so as far as I know bitcoin and stocks are very different in terms of price movements and the risks are different

[adaseb]

There are too many people that think that a recession is going to happen and too many people think that during a recession everybody will put all their money into Bitcoin, this most likely won't happen.

I've been around since the 2008 recession and when it started to reverse in 2009, people were expecting a double dip recession in 2010 and they shorted the stock markets and lost big. Then people were expecting a recession in 2012,2013,2015,... and so on. Pretty much people have been expecting a recession for over 10 years now.

Even if a recession does happen in 2020, it doesn't mean people will buy Bitcoin. Usually they will buy blue chip stocks or invest in real estate or gold. BTC is just too volatile during a risk-off period. But since bitcoin was never thru a recession its hard to tell what will really happen.

[piebeyb]

not really, even they are completely different, your crypto can decide when you should get profits and losses so you can choose the option to close a position, if the stock market I have never tried it looks like they are based on a contract, sorry if I'm wrong, but basically the stock market and the crypto market is different, sometimes when the stock market goes down, the crypto market will go up, because they switch there

[aomakun]

the answer is definitely not because the crypto market and the stock market have nothing to do, therefore when the pump stock market will not have an impact on the crypto market. and also the difference is quite a lot and they are not related, although both are investment models but they are not related to each other

[Aying]

If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

I don't think that bitcoin has relationship in stockmarket, bitcoin has its own market and stockmarket don't list crypto currency and that side, crypto market has no big effect if stockmarket goes up. in other words, crypto and stock market will still depend on its own investors.

[Fundamentals Of]

If stockmarket goes up, do you think crypto market would too?

please provide me good reasonss

Not necessarily. I think there is no single pattern of relationship between stock market and crypto market. If there is, probably it is that the crypto market will go up when the stock market will go down. I am thinking that some investors would shift to crypto whenever the stock market is falling down. But that does not also apply totally to their possible relationship. It could also happen that investment money is flowing really huge that some are getting into stocks while some are also in crypto.