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Author Topic: what would be relationship between bitcoin and stockmarket?  (Read 346 times)
Sanugarid
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December 31, 2019, 10:42:36 AM
 #21

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! 

There's nothing wrong about investing in bitcoin. We trust bitcoin that it will sure rise again its price because it happened last 2 years. In 2017, it reached a $10K USD and above, if that happened, it will surely happen again. We are the ones who take a risk, but in the end, we're also the one who will benefit to that investment. No matter how long or how far but we will still be patient and positive.

imstillthebest
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December 31, 2019, 10:48:04 AM
 #22

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.

roight mate . they are different in any means however i if im not mistaken i have seen a trading platform one time that enables traders to trade cryptos and stocks at the same time.

 that was a cool platform but i forgot its name already.  if that is the case , it simply means that both of them have a relationship to each other .
MURONDI
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December 31, 2019, 10:54:12 AM
 #23

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

please provide me good reasonss
in my opinion there is no connection between the stock market and bitcoin, when crypto prices soared last year did not seem to affect the stock market much, it's just that if most stock players switch to bitcoin, of course, stock trading will further decline.
Eugenar
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December 31, 2019, 10:59:25 AM
 #24

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.

Basically it could be from the transfer of investors if they find the other investment platform is quite better than another. Let's take for example if they are investing in cryptocurrency and they lose allot of investment for some reasons, they might go and try stock market which is in fact, consists of investment that aren't too volatile for them to avoid much risk. With this, it could be indirect but it is evident that there is a relation with stock and crypto with regard to its investors.
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December 31, 2019, 11:01:50 AM
 #25

I don't think so because:
With the desire to prevent the 2008 world financial crisis from happening again, virtual currencies were created with the expectation of an independent monetary unit, not controlled by banks or monetary institutions and not affected by inflation.
Kambal2000
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December 31, 2019, 11:06:08 AM
 #26

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

please provide me good reasonss
in my opinion there is no connection between the stock market and bitcoin, when crypto prices soared last year did not seem to affect the stock market much, it's just that if most stock players switch to bitcoin, of course, stock trading will further decline.

They are one of the investment that we can do for our daily life, but in terms of literally connection or relation, yeah they are not really connected to each other, so for me there is no reason for them to be compared at all, as they differ in nature and one trader cannot apply his strategy from crypto to stock market or vice versa.

akirasendo17
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December 31, 2019, 11:12:19 AM
 #27

currently bitcoin is not included in the current setup of the market, since its a digital money
only those like stocks for a big company shares are being traded with the stock market
but digital currency has its own exchanges where in you can buy and sell like stocks
this are the following exchanges:
Binance
poloniex
CoinsPh pro
etoro
and many others, maybe someday will going to see that the current market or stock exchanges they usually say will include digital currency which
is currently i think is under review im not sure but i think they are thinking about it

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chaoscoinz
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December 31, 2019, 01:00:55 PM
 #28

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

please provide me good reasonss
I really don't know the answer to that one my friend, and I'm not sure if the two will ever be directly connected anytime soon, but what I do know is that cryptocurrency market operates in a remarkably similar fashion to the stock market but in a more decentralized kind of way. The Forex market may be the best and closest comparison you could make to the cryptocurrency market. This is why many people find the transition from The Forex markets into the crypto markets an relatively easy switch.

Before cryptocurrency I had never traded Forex or Cryptocurrency before, but I found this free guide and school course on FOREX essential for learning how to trade both markets correctly.

It's a FREE guide and course system on trading, no bullshit!
https://www.babypips.com/learn

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December 31, 2019, 01:53:25 PM
 #29

Coinmetrics has a chart that allows us to see the correlation between BTC and S&P historically, taking the graph right up to yesterday’s readings:



The chart displays Spearmans correlation. What we seem to be observing here is that the correlation values are in the range of -0.2 and +0.25, which points to a very weak to weak correlation.
Quote
<…>
Correlation is an effect size and so we can verbally describe the strength of the correlation using the following guide for the absolute value of:
•.00-.19 “very weak”
•.20-.39 “weak”
•.40-.59 “moderate”
•.60-.79 “strong”
•.80-1.0 “very strong”
<…>
https://coinmetrics.io/correlations/#assets=btc-s&p
http://www.statstutor.ac.uk/resources/uploaded/spearmans.pdf
BeManga
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December 31, 2019, 02:25:53 PM
 #30

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

please provide me good reasonss
as of now, there is no real connection about bitcoin and stockmarket
in my opinion what only similar to the stock market is bitcoin as main currency and altcoin as the stocks









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kro55
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December 31, 2019, 04:14:37 PM
 #31

There is no relationship between stock trading and bitcoin trading, both are independent of each other. Stock exchanges worldwide are linked with oil prices. If oil goes up stock exchanges also go up. The crypto world is mostly dominated by millennials and whales.

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December 31, 2019, 08:28:05 PM
 #32

There is no relationship between stock trading and bitcoin trading, both are independent of each other. Stock exchanges worldwide are linked with oil prices. If oil goes up stock exchanges also go up. The crypto world is mostly dominated by millennials and whales.

no markets are truly independent because they are linked to macroeconomies. the national and global economic outlook affects everything. if a global recession occurs, this means companies turning losses and laying people off. people losing their jobs live off their savings and sell off their investments. this is what drives prices down in virtually all investment assets during recessions---increased supply and reduced demand. that applies to bitcoins just the same as stocks.

if the the crypto world is dominated by millennials, that may be a bad thing. millennials (and generation z) are in a much more financially precarious position than older generations, so the effects of recession i mentioned could be even more acute.

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December 31, 2019, 08:32:09 PM
 #33

We believe there will be an immediate direct relationship with Stock Market and BTC price. However, longer-term outlook is that as BTC matures as an asset class, there will be an inverse relationship to the traditional financial system. That is when things get really interesting for us HODLers Wink

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