Can a Stock Market Crash affect Bitcoin?

[Naida_BR]

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?

[Leonardo7]

I think the crash of the stock market will make investors buy bitcoin and trade it. I am currently in talks with my fund manager to sell off my mutual fund so I can invest the same in bitcoin. Bitcoin will appear to be a safe haven and this is expected to bring more liquidity to the market.

[leader2704]

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 think they will prefer buying gold to bitcoin since gold is a more secured collateral when stock market crashed, but, who knows ?!?

[leader2704]

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?

IMHO all altcoins are extremely cheap at this moment, you can buy, hold and wait for the market be more positive. Don't do day trade at this sensitive moment

[avikz]

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?

It's true that people will be start looking for alternatives if a traditional stock market goes down, but they are mostly unlikely to come to crypto market. The reason is simple, when an investor looks for capital protection, they would look for a safer avenue of investment and cryptos are not considered safer by many because of its volatile nature! So an investors will turn to precious metal market and the trend is evident! I already posted a chart in another thread which is given below,



The trend is pretty clear as you can see the gold price is steadily increasing due to the slowdown in the traditional stock market. These investments are least likely to flow to crypto market in any way!  

[Schirer]

It have not crashed yet, the indexes did have a downfall recently, yes! But it is holding its ground not that bad, the crash will be then when all of the globe will feel it, you will feel it with your salary.

In theory, it should impacts crypto in positive way but the last time we had bigger crash in stocks, crypto went down as well.

[DiggerMan]

I think the crash of the stock market will make investors buy bitcoin and trade it. I am currently in talks with my fund manager to sell off my mutual fund so I can invest the same in bitcoin. Bitcoin will appear to be a safe haven and this is expected to bring more liquidity to the market.

Somehow i think that those that are into stocks would rather buy gold, as it is more stable and safer, but some of that money would get into BTC as well.

[gentlemand]

Somehow i think that those that are into stocks would rather buy gold, as it is more stable and safer, but some of that money would get into BTC as well.

People should also have currencies in mind as well as stock markets. Lots of currency ratios are looking seriously skewed and perilous. That's potentially a bigger deal for BTC than stocks.

All the same if everything crashes I really cannot see crypto doing well. Ten or more years down the line there would be a greater chance of it but for now it's still a weird little plaything that'll be the first thing people drop if they start hurting properly.

[Naida_BR]

I think the crash of the stock market will make investors buy bitcoin and trade it. I am currently in talks with my fund manager to sell off my mutual fund so I can invest the same in bitcoin. Bitcoin will appear to be a safe haven and this is expected to bring more liquidity to the market.

I have the same feeling as well. If investors can find profits in the stock market they will move towards the crypto market.
But as they stock market drops and we see the same direction to be followed by the cryptocurrency market, it seems like those two market are positively associated.

[Duzter]

Both seems to be different from one another in various factors, and stocks can be predicted with relation to the growth taking place with the world market. With Cryptocurrency this isn't possible, and I see Cryptocurrencies to be independent from the world market which makes it unpredictable. Earlier when stock market was in the peak Bitcoin has grown high,and when stock market was down Bitcoin has reached peak. This way I believe stock market crash won't affect Bitcoin. Maybe this would change after years as bitcoin needs to mature more compared to the stock market.

[Oilacris]

Does the Stock Market has impact over the Bitcoin price?

Bitcoin market doesn't care with Stocks,Indices,Forex Markets.They might have a crash or any other issues but it wont really correlate on Bitcoins price.

There might be some possibilities of those money would flow through crypto but not still an assurance thing that it would be done.

[Distinctin]

Bitcoin might even increase as stock traders might find crypto a safe haven, but even in the past, stocks has no significant relation on crypto market movement, it's really different market here and it's more risk here since market is more unpredictable and when it comes to market manipulation, there's a high percentage that whales can dictate the price movement through their power to manipulate the price.

[Jating]

Does the Stock Market has impact over the Bitcoin price?

I can see two possible scenarios here:

1. When bitcoin is having a good year, stock market follow, i.e. 2017's peak of bitcoin.
2. When bitcoin suddenly went into a bearish trend in 2018, the same thing happen to stock market as well.

So it's really hard to see if traditional investors are more willing to move their funds across a non-traditional assets like bitcoin. Definitely we wanted them to test out bitcoin as a leverage sometime specially if stock market really plummets this year. However, its a case-to-case basis unless some entities really acknowledge their shift to non-traditional assets.

[Indamuck]

I don't think it will have much of an effect. The stock market seems to not have much correlation to the bitcoin price. I think it is better to compare bitcoin to gold, I do think that more people will sell their gold and convert their money into bitcoin as a store of value.

[1Referee]

Same institutions, same allocations. Bitcoin is a risk-on asset, even more so than all the flashy tech stocks that go through a heck of a lot volatility.

Debt flowing into the stock market means debt flowing into Bitcoin, though the amounts flowing into Bitcoin are obviously just a fraction of that. If stocks take a dive, you can bet your left sock that Bitcoin will be sold down too. The effect of this might not have been as strong back in the days as it is right now, but that's just because there is more institutional presence now and their positions in Bitcoin have increased too.

But then again, Bitcoin is so unpredictable that it could just as easily go up when stocks go down, without there being an actual outflow of stock market capital to Bitcoin. That's the beauty of Bitcoin. Assuming that something is going to happen based on what happened in the past can get you rekkt hard.

[mitchr4]

If the stock market crash, investors will turn to invest in more profitable places like Bitcoin. Gold is also a good alternative for investors if they want to avoid high volatile investments. We must realize that it is indeed the nature of Bitcoin that makes investors afraid to invest their money into this currency.

[hatshepsut93]

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.

Most investors try to save their money during crash, instead of looking for new opportunities - they don't want to risk more, they want to minimize the loss. And Bitcoin is a horrible way to preserve money with its volatility, you can lose 10-20% of your value in one day, something that looks just catastrophic in traditional assets. I believe the amount of traders who switch to Bitcoin during the crash will be so small that we won't notice any price effect.

[harizen]

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.

Most of the stock market investors are not that type of investors who will just look for alternatives (like jumping in crypto) while for let says that the stock market is currently on a dive status, just to get out and look for continuous profits. These investors already know that there will be a scenario like that in the future. Therefore, they will take advantage of that "low" then will execute their plan strategy in case of a crash rather than jumping to other investment alternatives.

Does the Stock Market has impact over the Bitcoin price?

Technically, NO. Stock market price movements don't correlate with the bitcoin price movement.

But generally, the one affected is the investor's strategy who thinks that the stock market can be linked to bitcoin price movement.

[TheCoinGrabber]

We haven't had a really big crash since Bitcoin's inception (it itself is in response to one) so things could turn up different from what we expect. Most people here agree that investors might buy it up in an attempt to try to keep their money's value and that's a very logical thing to do.

But let's also not discount the possibility that some people would be pulling out their money for various reasons. For one, people would need more cash during such events and people who don't have much left might dip into their crypto savings.

[adzino]

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?

Yeah, they might have a reverse affect but they will already have to be in a reversed situation for that to happen. When the stock starts to crash, people will might jump to investing on bitcoin if they see that the price of bitcoin is rising or on the verge of rising. What if the stock market was crashing and the price of bitcoin also crashing at the same moment? Would they choose bitcoin despite the price going down? I don't think so. They would instead try something else.