tsaroz
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December 12, 2019, 01:05:34 PM |
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Seems like there are no prominent direct relation between stock market and crypto market as both of them are to some extent speculative. Real estate on the other hand has some relation to both crypto and stocks and on a season of real estate buying and selling, which is Nov, Dec, Jan and Feb here, the crypto and stocks dips low.
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s92225 (OP)
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December 12, 2019, 03:55:18 PM |
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Coinmetrics has some interesting charts to see the correlation between the prices of two different assets. Most are crypto related, but there are a few traditional assets such as Gold and S&P. The latter is the most approximate entry to compare to, of those available. In order to see the correlation factor at work, I’m comparing BTC/S&P and BTC/ETH on the same chart:  https://coinmetrics.io/correlation-charts/#assets=btc-s&p,btc-ethThe chart shows a strong positive correlation of between BTC and ETH, even more so since April 2018 with a value of around 0,8 (maximum is 1 on the scale). On the other hand, the hypothesis of the OP should show a significant negative correlation between BTC and S&P, meaning that when one goes up the other goes down and vice-versa. The closer the correlation to the value of -1, the more negative correlated they are. Nevertheless, the correlation factor between BTC and S&P flips positive and negative, with values within +/- 0.2, which is a weak to negligible correlation with variable direction. At least with S&P, the hypothesis does not seem to stand as valid. Additional: https://coinmetrics.io/correlation/That's a useful graph, pretty consistent with my frd from OKEX claims |
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kryptqnick
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December 12, 2019, 04:19:31 PM |
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when share market down, crypto price goes up OP, can you put that in a chart? I highly doubt that it's true!  If the op means what coinmarketcap calls 'dominance', then it's sometimes true and sometimes not true. Namely, it used to be largely true before 2019, I would say. If you take a look at the price and dominance in 2017 and 2018, you can see this clear relationship that when the dominance is growing, the price is decreasing and vice versa. However, what's been happening since April of 2019 has proven this theory wrong, because Bitcoin's dominance keeps increasing more or less, and the price was at least going up for a while along with it. You can see the charts here: https://coinmarketcap.com/charts/#dominance-percentage. |
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rijaljun
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December 12, 2019, 04:22:57 PM |
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I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
That makes sense. When the stock market down, it means investors is losing their interest in stocks and possibly they will go the crypto market to take another investment opportunity. Why BTC? cause probably it is the only proper crypto currency to invest in. Look, how important BTC to altcoin, obviously only Bitcoin has independent price among other crypto currencies. |
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Darooghe
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December 12, 2019, 04:25:37 PM |
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I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
Bitcoin is objectively more secure than any Altcoins. as far as price stability goes that's anyones guess; but Bitcoin blows everything out of the water when it comes to security and decentralization. Bitcoin has the most developers working on new projects, hashing power, and it's actually accepted as payment at several places. no other coin can replace or compete with it. thereby, I only own bitcoin If any altcoins fails, bitcoin will still hold value, but if bitcoin fails which I don't see happening, all the cryptocurrencies will fail. but I see all cryptocurrencies besides bitcoin as being more vulnerable and risky than bitcoin. |
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mk4
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December 12, 2019, 04:32:11 PM |
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That makes sense. When the stock market down, it means investors is losing their interest in stocks and possibly they will go the crypto market to take another investment opportunity. Why BTC? cause probably it is the only proper crypto currency to invest in. Look, how important BTC to altcoin, obviously only Bitcoin has independent price among other crypto currencies. Lol I can guarantee that that's definitely not the case for the majority. Let's first take note that not every single person that's in the stock markets aren't there to trade. An investor who's asset's went down in value would definitely not move to bitcoin. If anything, the right move(and I assume what a good number of them would do) is to buy the dips on certain stocks that they're bullish on in the long-term. |
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pakhitheboss
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December 12, 2019, 04:37:57 PM |
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I do not think it happens. I have seen when the stock market is up the crypto market is also up and when stock market is down the same happens to the crypto market. What you are saying is the exact opposite of what I have checked. The global market today is sideways which is similar to crypto markets.
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imstillthebest
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December 12, 2019, 04:40:07 PM |
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how is that possible ? when market is down your also saying that all prices of cryptos are down but you said btc always increased ?
you mean to say that if the market goes down its always followed by a small increase ? that seem to be true but not always . there are those times that when the market is down all cryptos including btc were still down for a longer time . and why only btc or why mostly btc increases first ? well because btc is the most valueable coins before others .
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Chrystora123
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Omicron is another FUD
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December 12, 2019, 04:41:20 PM |
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snip..
market!! whether the stock market, cryptocurrency, forex or commodities? btw, I disagree with you.. every market (stocks, forex, commodities, cryptocurrencies) not related to each other, so your opinion is wrong. |
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boyptc
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December 12, 2019, 04:44:28 PM |
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You need to stay a little longer.
You're looking into the short term of the charts and sometimes it's like that. But most of the time, the market goes exactly as bitcoin goes. And you have seen the very few movements of the crypto market.
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ubercool
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December 12, 2019, 04:46:44 PM |
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But which share market..? Can you show some statistic relating to this opinion..? It seems like people shift their money from share market to crypto and vice versa but it's not completely true.
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rijaljun
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December 12, 2019, 05:00:33 PM |
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Lol I can guarantee that that's definitely not the case for the majority. Let's first take note that not every single person that's in the stock markets aren't there to trade. An investor who's asset's went down in value would definitely not move to bitcoin. If anything, the right move(and I assume what a good number of them would do) is to buy the dips on certain stocks that they're bullish on in the long-term.
When majority investors in fear, wouldn't they sell off their assets first before buying the dips? Isn't it possible for them to take other investment options when they feel the fear will last long? hence bitcoin could be one of the option for them. But if you are a type of person who won't take cut-loss then I would agree with you. |
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albrots
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December 12, 2019, 05:18:04 PM |
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Bitcoin dominance continues to rise because many enter the bitcoin market and sell their altcoins. Why dominance does not go down, because many people are waiting for halving bitcoin. Halving bitcoin will make the price of bitcoin go up.
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the rise
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December 12, 2019, 06:02:50 PM |
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Bitcoin dominance continues to rise because many enter the bitcoin market and sell their altcoins. Why dominance does not go down, because many people are waiting for halving bitcoin. Halving bitcoin will make the price of bitcoin go up.
although now in the accumulative phase, it was not always for Halving's reasons. I monitored since baakt began to run, derivative trading activity increased. In recent months there has been a large number of margin and futures activities between Btc and usdt. There has been a shift in interest periodically and caused a reduction in altcoin volume on the spot market. |
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GreatArkansas
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December 12, 2019, 11:00:58 PM |
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Lol, I also noticed this and become curios. Because I think stock shares are totally opposite with crypto, and I also think before if tge shares market are dumping, they are buying some cryptocurrencies that's why it's pumping, I still don't know.
Why gold is also different with stock markets.
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owengtam09
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December 12, 2019, 11:41:26 PM |
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I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
When the market is down the value of bitcoin is also down, that is not true that the price of bitcoin is high when the market is down, you have a chart or a site that you can include here for us to have some proof and believe you. I think you are saying about bitcoin dominance? Or maybe you should really put some evidence. |
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Artemis3
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December 13, 2019, 12:32:47 AM |
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I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!
Yes that's old, its similar to metals vs stock. Not always, but it tends to happen, as its now another option to flee into when the economy is bad (in addition to gold, etc). Those people will do the opposite once the economy recovers, sell their Bitcoin to buy the (cheap) stocks. Rinse and repeat, the trader's way of life. The altcoins are not as good as Bitcoin, its that simple. |
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Eugenar
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December 13, 2019, 12:40:40 AM |
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I do not think it happens. I have seen when the stock market is up the crypto market is also up and when stock market is down the same happens to the crypto market. What you are saying is the exact opposite of what I have checked. The global market today is sideways which is similar to crypto markets.
Basically both investment platform are independent to one another. The only difference is when it comes to Bitcoin, because sometimes, there are applications that involves bitcoin even if their main platform is meant for stocks. But anyways, for me the indirect proportion is just happening in a coincidence, no valid or solid proof to the theory so, to sum up, if something happens to stock, we couldn't just say the same or the opposite will happen to the market of cryptocurrency. |
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Kupid002
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December 13, 2019, 12:49:41 AM |
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Lol, I also noticed this and become curios. Because I think stock shares are totally opposite with crypto, and I also think before if tge shares market are dumping, they are buying some cryptocurrencies that's why it's pumping, I still don't know.
Why gold is also different with stock markets.
this is mostlikely happen thats why crypto market increase, there must be also other reasons but to think that more investors moving to crypto when thier shares is down is a good sign that there are many investors considered crypto as good investment also. |
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crossabdd
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December 13, 2019, 01:00:43 AM |
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I think investors see this opportunity. which is that bitcoin has experienced a long decline. so investors have seen the lowest point of the upcoming bitcoin price. so many investors enter bitcoin and make bitcoin presentations go up. other than that. maybe new investors have been tired and a lot of selling their Bitcoin. I see many traders coming out of Altcoin and choosing Bitcoin.
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