Why do many people insist that the cryptocurrency market is the only alternative in the event of any collapse in prices? this is not the case, but people who want to leave the stock market will be distributed to many sectors such as gold, real estate, digital currencies, and other activities.
and most importantly,
cash. the people pushing the "stock market crash will pump bitcoin" narrative are misguided bulls who equate normal recessions with the collapse of fiat money.
Don't get me wrong on this one but a dissatisfaction of investors from another market doesn't guarantee that they will move to just a singular market which in this case is the stock market investors all shifting to the crypto market. There are still a lot of other markets to consider and I know conservative investors won't like the idea of their money going into a much more volatile market and will just look for other alternatives with similar stability such as the forex market or even in a mutual fund.
significant stock market declines would indicate a
risk off period. investors would be looking for assets that are safer than stocks like US treasuries or german bunds---not a speculative new asset class like cryptocurrency.