Can a Stock Market Crash affect Bitcoin?

[xvids]

I was thinking that investors would think the cryptocurrency market as an alternative to traditional investment products.
Having said that, my point was that those two markets have a reverse impact.

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.
The last days stock market crash seems that lead the market cap of the crypto market down.

Does the Stock Market has impact over the Bitcoin price?

I don't know but maybe it does just like what you've said if the stock market drops they might come to crypto as an alternative,
And what if they already gain profit from crypto they could justtake it all away and put it back in stock.
Who knows maybe there are some people who might have been doing it stocks to crypto or the other way around .

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[jrrsparkles]

So, we have examples of stock market going down and bitcoin going up, we have examples of stock market going down and bitcoin going down as well. We can either say its counter-related, we can say its related or we can say two of those have nothing to do with each other at all.

There is no big stock market crash example to determine whether bitcoin market is correlated with stock market or not. The past big stock market crash happened in 2008 when bitcoin had not created yet. In the past years we have had only some small temporary decreases in stock market. As we know some small increases and decreases in price of bitcoin is inevitable and normal we cannot say they have been related to stock market.

Possibly bitcoin also will get into affect if the stock market fall because of panic from investors but like you said it may still unknown due to the fact bitcoin didn't faced any big economical crisis yet.On the other hand people might think bitcoin as an alternative when everything is falling for long term so if there is huge economical crisis in the future bitcoin will get more attention and people will move to bitcoin from the losing assets.

[javadsalehi]

Possibly bitcoin also will get into affect if the stock market fall because of panic from investors

Why panic sell? Why not panic buy? I expect many people buy bitcoin to not miss the train. Bitcoin has already proved that it can rise so fast. Why should people panic sell while bitcoin and stock market is not correlated? If stock market crashes, the money should flow to a new market.

[seraph_the_wise]

I was thinking that investors would think the cryptocurrency market as an alternative to traditional investment products.
Having said that, my point was that those two markets have a reverse impact.

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.
The last days stock market crash seems that lead the market cap of the crypto market down.

Does the Stock Market has impact over the Bitcoin price?

I don't know but maybe it does just like what you've said if the stock market drops they might come to crypto as an alternative,
And what if they already gain profit from crypto they could justtake it all away and put it back in stock.
Who knows maybe there are some people who might have been doing it stocks to crypto or the other way around .

I see some individuals investors taking away money from stocks & bonds into cryptocurrencies.
That's for sure, but that would be tiny percentage with limited monetary impact.

Currently most institutional portfolios I've seen, cryptocurrency is less than 0.01%, as a high-risk asset to maximize returns and diversify.
Why not increase it further? Because after a point, the curve inverts and the systemic risk introduced by cryptoassets outweighs the diversification benefits. If anything, we have been slowly reducing exposure, not increasing; while also dumping GBP and increasing exposure to low volatility currencies such as Yen

When we have a severe market crash, the tendency is to flee to safer assets, not plunging into more uncertainty & risk (except for a few market contrarians, but those already made their move long ago). It's not rational but human nature.
I don't know a single institutional fund manager who would increase their risk potential in a downturn..even if its the right thing in hindsight...as they might as well lose their job in the worst time possible and a get a taint on their reputation. The scope of actions of a fund manager is severely constrained after all.. you don't get to do what you want... I wish.
Funds will probably do what traditionally has been done before and invest in safe assets with low volatility. That means fleeing to gold, US Gov Bonds, CHF, Yen, some real estate.

[STT]

Does the Stock Market has impact over the Bitcoin price?

In extremes its almost completely certain to have an effect.  The reason is hot money, people leverage their positions to gain from the appreciate of capital they have not yet earned.   So long as you can sell immediately and are correct on the price gain then it works.   When one set of prices fall it starts to trigger a withdrawal tide of capital in all sorts of markets.

   Bitcoin is seen as very risky on the spectrum hence people will sell a position here before they sell anything like equity or bond holdings.    Also its easily arguable that stocks will return a yield to owners where as BTC is a kind of commodity speculation.

   In theory BTC is a unleveraged system not subject to fractional reserve effects like this but as capital from an easy dollar policy is spread around the world in trillions of debt and new money issued, the price of everything is being altered by that capital

[bryant.coleman]

I think that in the event of a fall in the stock market, a lot of money will be redirected to cryptocurrency. Therefore, the crisis of the crypto market is only at hand.
Institutional investors are well aware that it is cryptocurrency that can help them save money in the event of a severe crisis.

The last time we had a major crash was in 2008-09 and back then Bitcoin was not in existence, so don't have previous examples of what would happen if a crash occurs. But we had several financial crises of varying magnitude during the past decade. The Cypriot and Greek crisis comes to mind now. At that time also, a lot of people were claiming that Bitcoin would see a rise in acceptability and popularity, but in the end nothing really happened. The same can be said about the ongoing crisis in Venezuela as well. Globally, these incidents have very little impact. Even the ongoing trade war between the United States and China seems to have very little impact on the Bitcoin exchange rates.

[archiday]

I believe that investors will enter the new global cryptocurrency market only when circumstances really squeeze them. And it will squeeze them with a global wave of economic crisis. Since only cryptocurrencies will be a relatively safe haven at that time, in an effort to save their capital, investors will pour them into digital assets. And not necessarily in bitcoin, but the price will definitely soar to the currently unimaginable limits. But for how long? After growth, there is always a decline.

I wait a new big wave of crisis in 2020-21. So, will see..

[Pab]

It is very interesting question
Look  S&P500 chart and bitcoin chart.Both look very similar
Bitcoin is important indicator for wall street traders
It is because bitcoin is blue chip between risky asset class
Bitcoin failing first then wall street follow

[lixer]

I think that in the event of a fall in the stock market, a lot of money will be redirected to cryptocurrency. Therefore, the crisis of the crypto market is only at hand.
Institutional investors are well aware that it is cryptocurrency that can help them save money in the event of a severe crisis.

That will happen if people in the stock market are desperate to see the market fallen. They will moves to the crypto market, and they will see a chance to make money again. I think when it's happening in the crypto market, we are going to see another support from the new investor that will help cryptocurrency will grow fast in this year. But I don't think that people who are trying with stock market will come easily to the crypto because some of them do not believe in cryptocurrency.

There is no investor that would deliberately crash the market of what he has invested in and expecting some good return, the stock market do crash, which is usually caused sometime by poor management or state of the economy.

I a situation where stock market crashes, people will only want to pull their money out to put in another functioning system, and since bitcoin or cryptocurrency market is not a new one to them, they will see it as an opportunity for them to just invest in it once and for all provided that the market value then would not scare them away thinking it had already reached peak and if such thing happen, the surely the value f bitcoin will definitely grow. They might not come easily to crypto, but when problem arises won’t they come?

[el kaka22]

In order for these huge whales to consider bitcoin as an alternative to other stuff we need to make sure we are easily disposable. Now you think that might be a bad thing but its not, being able to cash out whenever you want without a problem is the number one thing that stocks have over us, some people with low amounts of dollars in bitcoin think its quite easy to cash out but when you have 5+ million dollars in bitcoin and want it all in cash back to your bank account there are a lot of legal hoops you have to go through and that is creating a bit of trouble for us to get the whales into the system.

Stocks are not like that, you sell your stocks and than get your money back and all of it is prepared for you already so you have no problem doing it, we need bitcoin to be like that.

[1Referee]

Look  S&P500 chart and bitcoin chart.Both look very similar

Not sure what chart you look at, but they aren't 'very' similar at all. It shouldn't even be considered similar because the S&P is composed of 500 of the largest companies in the US, all with revenue and profit streams. Bitcoin's chart reflects speculation at its finest since there isn't anything that's backing it aside from the electricity required to mint a coin.

Bitcoin is important indicator for wall street traders
It is because bitcoin is blue chip between risky asset class
Bitcoin failing first then wall street follow

Mind explaining how you come up with that? There is not enough data to make such a statement. With how people are hyping up institutions entering crypto, they make it seem that crypto needs institutions to get to the next level. In that regard, who needs who?

[javadsalehi]

In order for these huge whales to consider bitcoin as an alternative to other stuff we need to make sure we are easily disposable. Now you think that might be a bad thing but its not, being able to cash out whenever you want without a problem is the number one thing that stocks have over us, some people with low amounts of dollars in bitcoin think its quite easy to cash out but when you have 5+ million dollars in bitcoin and want it all in cash back to your bank account there are a lot of legal hoops you have to go through and that is creating a bit of trouble for us to get the whales into the system.

Stocks are not like that, you sell your stocks and than get your money back and all of it is prepared for you already so you have no problem doing it, we need bitcoin to be like that.

I agree with your opinion about the problem that some people will face. That's why I expect many people to choose gold as alternative of stock market. But be sure bitcoin will also attract many investors. All the countries are not that strict when you deposit your money to their banks. We have already many whales in the market. It's a sign there is no problem for many people when they deal with big amounts of bitcoin. Both bitcoin and gold have their own advantages and disadvantages. Some will be attracted to bitcoin and some will be attracted to gold. There is no doubt bitcoin will attract many current investors of stock market if stock market crashes. The percentage of the money that flow from stock market to bitcoin depend on many factors abd what you mentioned is only one of them which will be considered by some investors as a disadvantage.

[Vishnu.Reang]

If a recession occurs, then naturally the investors will be dumping their stocks/mutual funds and flocking to "safer" assets such as treasury bonds and bullion bars. Now the issue with cryptocurrency is that it is not being considered as a "safe" asset. On the other hand, it is being regarded as even more riskier than the equities and mutual funds.

[yoseph]

If a recession occurs, then naturally the investors will be dumping their stocks/mutual funds and flocking to "safer" assets such as treasury bonds and bullion bars. Now the issue with cryptocurrency is that it is not being considered as a "safe" asset. On the other hand, it is being regarded as even more riskier than the equities and mutual funds.

Gold and other precious metals seems to be the haven most people tend to go to when the stocks markets starts to crash and seems most people tend to see Bitcoin in the same category as Gold I think that a supposed crash would be very beneficial to Bitcoins and cryptos as a whole.

[veleten]

it can and it does , as we speak
with the usual investment heavens crashing down and markets falling
many of the traditional investors are going to look at cryptocurrencies , namely bitcoin
it was said that when the price crashed below the 10.000 mark a couple of weeks ago , Coinbase registered a lot of buy orders
people were buying up despite the falling price , same happened a day or two ago , depsite the sudden dump of coins the price didn't crash and stabilized at 9400-9600
we can see that stock market crashes and trade wars can be a good sign for cryptocurrencies
well , unless it crashes too much , in this case things could become very unpredictable

[JohnBitCo]

If a recession occurs, then naturally the investors will be dumping their stocks/mutual funds and flocking to "safer" assets such as treasury bonds and bullion bars. Now the issue with cryptocurrency is that it is not being considered as a "safe" asset. On the other hand, it is being regarded as even more riskier than the equities and mutual funds.

Gold and other precious metals seems to be the haven most people tend to go to when the stocks markets starts to crash and seems most people tend to see Bitcoin in the same category as Gold I think that a supposed crash would be very beneficial to Bitcoins and cryptos as a whole.

Many people are of the view that if the stock market crashes it will have a good impact on Bitcoins. What is more worse is they are waiting for the stocks and the financial market to crash so that the Bitcoin can gain high values and they can enjoy the profits.

I am not sure if this could happen in reality because if stock market crashes then the Bitcoin market will also crash, maybe people will invest in Gold only.

[altcoindeals]

I believe Bitcoin would be resilient against a stock market crash, although I could see money funneling out of Bitcoin in order to take profits and pick up some deals when the market is down. However, if we enter into a depression and governments around the world vye for more control using extreme methods, the price of Bitcoin could potentially plummet. If neither of these things happen, I think Bitcoin has nowhere to go but up.

[BitHodler]

Bitcoin is the digital gold for you and like gold in disinflationary to the financial crisis or crash, Bitcoin falls in the same category.

Bitcoin isn't going to be a deflationary currency until the last Satoshi is minted somewhere in the year 2140. The same applies to gold. It's not a deflationary currency as long as gold is still being minted and thus inflate the total supply further.

I wouldn't call gold deflationary anyway, especially with how technology keeps improving-- gold that isn't being minted today because that would be too expensive, will likely be minted profitably somewhere in the next decades.

People here seem to be overly optimistic about Bitcoin doing well during a crisis, but I wouldn't really count on that as long as it is perceived to be a very risky asset class. Bitcoin has a lot of catching up to do in order to be a safe haven asset.

[davinchi]

We may not get the people who want a safer investment for their crashing stocks however we can get those crazy people who are chasing their loss and they could invest their money into bitcoin to make more money and return those losses they had from the stock crashes.

I know those are not big in numbers as population and community for us but at least that would be big in amount of money they will bring in, stock market people in USA is the biggest investors in anywhere around the world, maybe second behind UK and forex because lets be honest they have been ruling over 100+ nations for the past 500+ years so they are used to "forex" type of stuff and they have been doing it very well but both of those communities may enjoy bitcoin and its fast pace if they burn out of their investment methods.

[boltz]

Yes and no.
Yes if somehow the whales are also involved in Bitcoin and they need to cashout in order to cover the loss with money from bitcoin but I doubt big whales are involved into stocks anymore.
No because there are 2 different things and mostly a crash on stocks can bring a new wave of investors into bitcoin and blockchain and even alts or this is how I see a stock crash at least, if investors are not big involved into bitcoin , nothing to worry about but if they are lets hope they don't have a lot of money into bitcoin.