Are mainstream events linked to crypto's price movement on the market?

[Abiky]

Do you think current prices on the market for each cryptocurrency are largely attributed to events in the mainstream world? I've noticed that every time the stock market goes up, crypto goes down in price. The same thing happens vice versa. Even Facebook's Libra announcement, had a positive impact in crypto's price within the short term. I believe this shouldn't happen in the first place as crypto was meant to distance itself from the centralized world. Linking mainstream events to crypto, will result more harmful than good, in my own opinion. Crypto should be independent from whatever happens in the outside world. Once this is achieved, cryptocurrencies will be able to reach prices far beyond reach. At least, that's the way I see it. Maybe I'm wrong. But, if crypto is truly linked with events in the mainstream world, we could have an idea when it'll rise in price or when it'll fall.

What do you think?

[1715040660]

1715040660

[1715040660]

1715040660

[1715040660]

1715040660

[sockpuppet1911]

Not sure why crypto would ever be outside of the real world, especially when we are moving towards adoption every day, it reacts to the real world more and more. When the news about banning crypto decrease at some point, i would say that btc should react similar to gold on news. Especially when reacting to wars.

[Totori]

Do you think current prices on the market for each cryptocurrency are largely attributed to events in the mainstream world? I've noticed that every time the stock market goes up, crypto goes down in price. The same thing happens vice versa. Even Facebook's Libra announcement, had a positive impact in crypto's price within the short term. I believe this shouldn't happen in the first place as crypto was meant to distance itself from the centralized world. Linking mainstream events to crypto, will result more harmful than good, in my own opinion. Crypto should be independent from whatever happens in the outside world. Once this is achieved, cryptocurrencies will be able to reach prices far beyond reach. At least, that's the way I see it. Maybe I'm wrong. But, if crypto is truly linked with events in the mainstream world, we could have an idea when it'll rise in price or when it'll fall.

What do you think?

I don't believe so for "each currency", but I do believe that it's possible for bitcoin and several of the other larger currencies. Things such as the actions against Iran, China mining issues and many others tend to make bitcoin flucuate wildly since Bitcoin can be seen as a risk aversion asset at times similar to gold.

[Aabcde]

In fact, the trader moves because of the event. This is called fundamental analysis.
Most of us assume that an event that occurs in the real world related to crypto must have an effect on price movements.
From this, I also think that this just forms of the Fear of Missing Out. Because some news can have good effects and provide benefits and can be vice versa.
And this does not hurt in my opinion. Because the implementation of crypto is also not so massive in the real world.

[crwth]

I think it's a case to case basis depending on how much influence that event has to the place it is in and the organizer of it. Imagine if someone just organized an event to spread the information about Bitcoin, and he tries to market it, but only a few people come. When someone like Binance hosts an event, it's quite easy for them to spread the news about it, and they are one of the biggest exchanges there could be impactful results.

So when Facebook and alike tend to lean towards the cryptocurrency space, it's going to be influential, like the Libra you mentioned.

You cannot separate what the world is doing and how it's affecting cryptocurrencies; it's not independent of anything.

[Abiky]

I think it's a case to case basis depending on how much influence that event has to the place it is in and the organizer of it. Imagine if someone just organized an event to spread the information about Bitcoin, and he tries to market it, but only a few people come. When someone like Binance hosts an event, it's quite easy for them to spread the news about it, and they are one of the biggest exchanges there could be impactful results.

So when Facebook and alike tend to lean towards the cryptocurrency space, it's going to be influential, like the Libra you mentioned.

You cannot separate what the world is doing and how it's affecting cryptocurrencies; it's not independent of anything.

It's unfortunate to see how closely crypto is linked towards mainstream events, as it was designed to be free from middleman. In order for crypto to work as intended, it needs to become independent from what happens in the mainstream world. Only then, it can be used as a "safe haven" against the traditional monetary system of today. With a closer look at the crypto market, I was able to determine that crypto behaves similar to the traditional stock market. Positive news in the mainstream world influence crypto's price across the market, whereas negative news does otherwise. Considering that most people are into crypto for the money instead of believing in its potential to decentralize finance, the market has reacted in strange and bizarre ways at times.

I'd be surprised to see the impact of crypto's price on the market with the decision of worldwide governments to ban their use in their entirety. While crypto is still decentralized, the mere fact that it'll be declared "illegal" would negatively impact its price across the market. Of course, I don't expect this to happen anytime soon. But if it does, you'll realize that crypto moves accordingly to events happening in the mainstream world.

Nonetheless, I hope that crypto becomes more independent as decentralized solutions (DEXs, atomic swaps, etc.) become widely adopted by people in the mainstream world. Only then, mainstream events won't have an impact (either positive or negative) over crypto's price. But the mere fact that centralized exchanges dominate the space, explains why so many events in the mainstream world are directly linked to crypto's price on the market. Just my opinion

[Dickiy]

not necessarily every digital currency is mostly caused by events in the mainstream world but that is one of the major causes of most currencies and what I know is stablecoin which is very much streamlined towards major world events

[naikturun]

it should be related because crypto itself has become part of the world economy, yes even though the amount is not as much as shares that have long existed.so of course the price movements affect other commodities.
yeah it seems like every 4 years crypto will be at the peak well that's just my assumption, everyone has different think.

[NathanJB]

I guess anything that is publicly offered for buy and sell is going to be affected by the world's events. At least those events that might affect directly or indirectly affect it. But with so many factors, including fake and real news, affecting the price of crypto, we can hardly tell sometimes which made the biggest effect. But I don't think there is such a thing as crypto is rising when the stock is falling. I don't think there is a consistent pattern suggesting that.

[Soots]

not necessarily every digital currency is mostly caused by events in the mainstream world but that is one of the major causes of most currencies and what I know is stablecoin which is very much streamlined towards major world events

I don't see any good effects yet on which of these coins really had gone a full effectivity of mainstream events. What's most valuable this time is adoption, people who has no proper understanding on crypto won't develop a wide visionary in order to make their asset become sustainable.
Price will change unexpectedly, so by means of increase in demand it could reach a profitable value when target is meet.

[karanggatak]

I also think that events in the mainstream affect crypto prices. because I think now crypto has entered our economic system. and major events that occur definitely affect crypto holders. for example like the Iran-America conflict yesterday. when conflicts occur people will be afraid of losing their assets and therefore they seek to keep their assets secure. some chose gold and bitcoin. that's why yesterday the price of gold and bitcoin experienced an increase.

[traderethereum]

It could be like that. We can see around us in real life, and sometimes it affects online life too. But not all things connected like that, and maybe it is just coincidence, so we thought that when the stock goes down, the crypto will be up. If that is happening like that, then when the stocks crashed, the crypto will soar to the higher price.

Unfortunately, we don't know the right answer for that, and we only know by coincidence. But if the whole things that become worst in real life, people will search from other sources and one of the sources will be on the internet.

We need to see and research deeply to find more answers if that is connected or not so we can conclude that if something happens in real life, that will affect online life.

[shinratensei_]

I think it's a case to case basis depending on how much influence that event has to the place it is in and the organizer of it. Imagine if someone just organized an event to spread the information about Bitcoin, and he tries to market it, but only a few people come. When someone like Binance hosts an event, it's quite easy for them to spread the news about it, and they are one of the biggest exchanges there could be impactful results.

So when Facebook and alike tend to lean towards the cryptocurrency space, it's going to be influential, like the Libra you mentioned.

You cannot separate what the world is doing and how it's affecting cryptocurrencies; it's not independent of anything.

Nonetheless, I hope that crypto becomes more independent as decentralized solutions (DEXs, atomic swaps, etc.) become widely adopted by people in the mainstream world. Only then, mainstream events won't have an impact (either positive or negative) over crypto's price. But the mere fact that centralized exchanges dominate the space, explains why so many events in the mainstream world are directly linked to crypto's price on the market. Just my opinion

I don't think so, All of the payment gateways for ordinary people to create txs to the crypto pegged to the centralized system. Dex, atomic swap or something else will not be a solution. In another case, just imagine what will be happening when the government will be creating an order to block all of the gateways to the crypto and then, people have no choice to do people2people transaction only. The fact that we can't even leave from the centralized entities because it's the main thing for crypto to get more and more demands.

[Jpt]

Decentralization does not mean it is excluded from the people. People's sentiments cannot be controlled by decentralization. So people's sentiments are swayed when there happens something in the market. Cryptocurrency is largely affected by sentiments of the people. So price of coins goes up and down acting on sentiments of the people.

[Bttzed03]

I've noticed that every time the stock market goes up, crypto goes down in price. The same thing happens vice versa.

I believe this shouldn't happen in the first place as crypto was meant to distance itself from the centralized world.

Crypto should be independent from whatever happens in the outside world.

These guys moving in and out of crypto are also experienced traders in stocks or even forex. I don't see anything wrong there, they are free to trade in whatever market they want.

[Ucy]

Probably caused by whales switching between the two worlds? I guess it's more obvious when few whales do the switching in short time or when regular people (plus whales) switch in large number in response to news/fundamentals. I think the latter is safer for the market. Things could improve when a crypto ecosystem is more developed in the future with increased mass adoption.

[Thomas-s]

I think that the cryptocurrency market does not depend on the stock market, but from the events in the world for sure. if something negative happens in the world, then the cryptocurrency market is constantly growing in price because people want to save their money, and cryptocurrency is the only tool that can guarantee the security of your money. I think that now all people are worried about the situation between the United States and Iran and therefore the price is going up, but I could be wrong

[tsaroz]

Firstly when it comes to economy and money spent, every field where money is used are interlinked and have effect on each other. You can't make them completely independent of each other. And don't know where you get your stats from, most of the time stocks increases, there's an increment on overall value of crypto and similar move while decreasing.

[cryptonewbie]

I think the relationship between cryptocurrency and centralized institutions will be here with us for a long time. Events in the centralized world usually has a way of rubbing off on the price of crypto. Just take a look at the tension between China and US and also between Iran and US

[Ailmand]

It may have an effect but it is indirect. Each crypto investors' investment decision is still affected by the real-world events. Let's say an economic downfall can either push a crypto investor to either withdraw or invest more in crypto which will have an effect in cryptocurrency market.