Can a Stock Market Crash affect Bitcoin?

[South Park]

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?

The truth is that we will not know until we experiment it, we may think that a market crash will benefit bitcoin but during those circumstances people are looking for liquidity and when that happens most of the time they sell their assets that still have value, so even if bitcoin was not directly affected by the crisis its price could go down as people begin to sell so they can have money to pay the bills, however I really believe that if the next crisis is a huge one bitcoin will benefit from it as people realize that bitcoin cannot be created at will by the governments.

[bitcon]

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?

The truth is that we will not know until we experiment it, we may think that a market crash will benefit bitcoin but during those circumstances people are looking for liquidity and when that happens most of the time they sell their assets that still have value, so even if bitcoin was not directly affected by the crisis its price could go down as people begin to sell so they can have money to pay the bills, however I really believe that if the next crisis is a huge one bitcoin will benefit from it as people realize that bitcoin cannot be created at will by the governments.

It is difficult to say. Even financial experts will never give the answer to this question. There can be 2 scenarios -- Bitcoin will Moonrise or fall. In the first case, many traders will start dealing with cryptocurrencies and simply invest all in BTC.
However, crypto traders can be scared by the news from the stock markets and sell their cryptocurrencies leaving the crypto market.

[shoreno]

- snip -

The truth is that we will not know until we experiment it, we may think that a market crash will benefit bitcoin but during those circumstances people are looking for liquidity and when that happens most of the time they sell their assets that still have value, so even if bitcoin was not directly affected by the crisis its price could go down as people begin to sell so they can have money to pay the bills, however I really believe that if the next crisis is a huge one bitcoin will benefit from it as people realize that bitcoin cannot be created at will by the governments.

It is difficult to say. Even financial experts will never give the answer to this question. There can be 2 scenarios -- Bitcoin will Moonrise or fall. In the first case, many traders will start dealing with cryptocurrencies and simply invest all in BTC.
However, crypto traders can be scared by the news from the stock markets and sell their cryptocurrencies leaving the crypto market.

if they are scared about the news of the stock market then why the heck they would sell thier cryptos and leave cryptos ?  whats the connection between them ? they should have only sell thier stocks and leave stocks alone , theres also a possiblity that they will transfer on crypto investing therfor the value of  cryptos will rise but some would prefer to not invest for a while because they still have that phobia from investing  . stocks and btc/crypto are different so my answer is still no  .

[breathlessz]

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?

The truth is that we will not know until we experiment it, we may think that a market crash will benefit bitcoin but during those circumstances people are looking for liquidity and when that happens most of the time they sell their assets that still have value, so even if bitcoin was not directly affected by the crisis its price could go down as people begin to sell so they can have money to pay the bills, however I really believe that if the next crisis is a huge one bitcoin will benefit from it as people realize that bitcoin cannot be created at will by the governments.

It is difficult to say. Even financial experts will never give the answer to this question. There can be 2 scenarios -- Bitcoin will Moonrise or fall. In the first case, many traders will start dealing with cryptocurrencies and simply invest all in BTC.
However, crypto traders can be scared by the news from the stock markets and sell their cryptocurrencies leaving the crypto market.

indeed there is no authentic evidence of the relationship between the two. besides that, stock traders don't necessarily trade cryptocurrency, and vice versa. but so far I have seen news about cryptocurrency that can affect the price of crypto. and I only saw the news on crypto to determine attitude my transaction on crypto

[LUCKMCFLY]

Due to these possible events, it is always advisable to have the money invested in gold, not only bitcoin, because it is always compared to Dollar / Euro and other important currencies worldwide, and if we are going to see both the Rotchsfields and the Russia of Putin, they've been buying a lot of gold, maybe they handle information and make those decisions. But if there was a crash in the world economy, bitcoin would have to have its value vs gold.

[crenfrosck]

Definitely. We live in a times where bonds give investors negative return. They seek opportunities to grow their portfolio and I would say that they are just waiting for ”legal” ways of obtaining crypto through institutions or are already doing so through OTC trading. It's worth a risk, I think so at least. Crazier things happened throughout the history and being prepared for even the least possible scenario might be rewarded sweetly  .

[Zemomtum]

If the stock market will affect Bitcoin in any form, it will be in positive way as investors will be looking at an avenue to diversify their portfolio. Stock market might not recover easily until Bitcoin attain another all time high in price where the money will be be withdrawn and put back to stock market. At the moment, Bitcoin have not started the movement that all are expecting, recovery of stock market might last longer than usual

[Initscri]

It really depends on the severity of the crash as well. If the crash is massive, BTC will most likely fall with it. No one will be looking for "alternatives" if the market is falling drastically.

At-least thats $0.02

[maydna]

It could affect bitcoin in both ways. first btc could increase in value fast, because people leaving the traditional stock market and looking for other opportunities.

people who are invested in btc and in the stock market selling their stocks with a loss and taking profits on their btc investments to cover the losses. so, there are some different scenarios how a stock market crash can affect btc in my mind. 

That means more whales are coming and by that scenario, we can only assure that the price will go up if the demand increases but the price of bitcoin can go the sideways and might follow the trend of the stock market. The price of bitcoin should stay on a higher level, we can’t afford to see bitcoin’s recession.

I am sure that many investors from the traditional stock market are already invested in many coins, especially bitcoin, because bitcoin can give them a big profit once the price increases. Although now the situations of the market are not good, we have a chance to see the market will have a bull run time because from the last year until this year, the price can increases so the bull runs itself will come in the right time. But we need to hold the coins for a while if we don't want to miss the chance to get a bigger profit in the future.

[Initscri]

It could affect bitcoin in both ways. first btc could increase in value fast, because people leaving the traditional stock market and looking for other opportunities.

people who are invested in btc and in the stock market selling their stocks with a loss and taking profits on their btc investments to cover the losses. so, there are some different scenarios how a stock market crash can affect btc in my mind. 

That means more whales are coming and by that scenario, we can only assure that the price will go up if the demand increases but the price of bitcoin can go the sideways and might follow the trend of the stock market. The price of bitcoin should stay on a higher level, we can’t afford to see bitcoin’s recession.

I am sure that many investors from the traditional stock market are already invested in many coins, especially bitcoin, because bitcoin can give them a big profit once the price increases. Although now the situations of the market are not good, we have a chance to see the market will have a bull run time because from the last year until this year, the price can increases so the bull runs itself will come in the right time. But we need to hold the coins for a while if we don't want to miss the chance to get a bigger profit in the future.

There's interest. But it's still seen massively as a massive-risk investment. Not many wall street investors are probably taking it as seriously as some would hope.

[omonuyak]

Bitcoin actually has its internal issues that do cause it pumping or declining! We have network and mining problems and improvement that do affect bitcoin pricing often and that is why we should not completely focussing on the external factors like declining in stock's pricing and interest or monetary policy of a particular country for what happen to bitcoin or other coins.

[South Park]

It really depends on the severity of the crash as well. If the crash is massive, BTC will most likely fall with it. No one will be looking for "alternatives" if the market is falling drastically.

At-least thats $0.02

It is the opposite, in times of great crises people do everything they can to find safe assets to invest their money in them, this is the main function of gold, when the economy is doing well gold receives almost no attention except for the gold bugs but when things go wrong we can clearly see a growing interest by the rest of the population in buying gold and silver as well, if bitcoin begins to perform some of the functions of gold and becomes a store of value a crash on the stock market could benefit it immensely.

[Initscri]

It really depends on the severity of the crash as well. If the crash is massive, BTC will most likely fall with it. No one will be looking for "alternatives" if the market is falling drastically.

At-least thats $0.02

It is the opposite, in times of great crises people do everything they can to find safe assets to invest their money in them, this is the main function of gold, when the economy is doing well gold receives almost no attention except for the gold bugs but when things go wrong we can clearly see a growing interest by the rest of the population in buying gold and silver as well, if bitcoin begins to perform some of the functions of gold and becomes a store of value a crash on the stock market could benefit it immensely.

Considering the higher risk nature of Bitcoin, I don't think the same logic applies to Bitcoin in comparison to Gold. There's no doubt that some may flock to Bitcoin to store assets when compared to the stock market/bonds, but I don't think it'll be the same in comparison to gold.

[javadsalehi]

First, I don't think bitcoin and stock market are correlated. If stock market crashes, it wouldn't cause bitcoin price fall. Assume that people are selling their stock. It won't cause cryptocurrencies holders lose their faith and sell their bitcoins. They are completely different markets. It is same as 2007-2009. Bitcoin market crashed. It didn't caused people to sell their gold. And now bitcoin is that gold. In the past stock market crash, many people chose gold as the alternative. If stock market crashes again, this time people will have another option too. That's bitcoin.
Generally, if a financial market crashes, people will invest ij other markets. As bitcoin and stock market are nit correlated, crash in stock market can cause bitcoin to thrive.
(I have considered the current market of bitcoin which I think many people are enthusiastic in investing in it. Whenever stock market crashes, bitcoin market should be considered based on that time.)

[barbara44]

Depends on the level of the crash. We have seen just recently that stock market crashed and than the price of bitcoin went down as well, some say it was related, some say it was coincidence, I am not an expert so I can't say if it was just coincidence or it was just what happens when stock market crashes. On the other hand we have seen previous falls of stock market in USA as well and a lot of countries going bankrupt like Cyprus deal and it affected positively for bitcoin prices.

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.

[Williams_Leo]

External influences that make bitcoin prices decline do occur several times but so far regarding stocks that make a big decline I see not so great. trade wars and also the statement about bad cryptocurrency still dominates the big influence of the decline in bitcoin from an external perspective

Indeed, the stock market has had a few accidents but the association with bitcoin is almost non-existent, the value of bitcoin does not follow the trend of the stock market but we should expand the problem, here, perhaps the accidents are still not too big, investors still do not need to move to new locations to avoid the big waves. This means that if one day, the stock market collapses to a horrible level, the value and some of the changes in bitcoin will occur when stock investors begin to participate in bitcoin.

[TrevorS]

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.

[javadsalehi]

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.

[ethereumhunter]

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.

[SquallLeonhart]

What people are mistaking is that people who have "lost" money in stocks do not feel the same way you feel, there are ones that even invest more so they could make more money when it goes back up. It all depends on what stocks you are investing but people heavily invested into banks after 2008 for example, why? Because banks got so low and even almost bankrupted that from there on the only direction was up, and of course they went up as well so it was a smart decision.

However at the same time, people didn't really took out their money as well, some of course did but not all because if they lost that much money, what good is getting out with a panic? At best you lost some money, at worst you lost money plus you could had it back but didn't. So they keep it in and wait.