Stock market CRASHING. How will this reflect on Bitcoin

[Qcrypto]

As of today (26th January, 2020) stock market seems to be taking a huge hit.

Here are the standings of biggest indexes:

Dow Jones: -$840 (-2,90%)
S&P 500: -$94,49 (-2,83%)
NASDAQ: -$327,28 (-3,42%)



In correlation to the stock market, Bitcoin also followed with -$251,40 (-2,52%)



The fact that Warren Buffett once again talked negative towards cryptocurrencies and Bitcoin could be the reason for people to sell out of fear.
Here is the video: https://www.youtube.com/watch?v=d6yqrwOZVjY


Is the stock market heading to a crash and recession?
Will Bitcoin follow?

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[20kevin20]

I don't think BTC would crash in a recession, but it's just my thoughts and I may be wrong as well. Do people really invest based on Buffett's words? I haven't heard anyone follow his thoughts yet. He's a boomer & Bitcoin is worthless to him because he's most likely used to investing in tangible stuff and stocks.

Bitcoin is going through weird movements at the moment imo. We need more time and meanwhile its path will be paved.

[mk4]

Is the stock market heading to a crash and recession?
Will Bitcoin follow?

A market crash/recession is definitely going to be interesting(though I definitely would wish this upon everyone for obvious reasons) concerning bitcoin's valuation because bitcoin hasn't existed yet when the 2007 recession started hence we really can only speculate for now.

There are two sides here:

• The bull: Bitcoin will rise in price because people will be moving money to safe haven assets.

and..

• The bear: Bitcoin will crash because people will be selling their bitcoin for them to be able to afford daily needs(food, sanitation, etc).

Personally, I'm for the latter because it's likely going to be the case. I don't much people think of bitcoin as a "safe haven" asset as of yet. But then again, we're just guessing.

[gentlemand]

Personally, I'm for the latter because it's likely going to be the case. I don't much people think of bitcoin as a "safe haven" asset as of yet. But then again, we're just guessing.

I would be absolutely astounded if Bitcoin did well during a full on meltdown. It is a safe haven to some people, perhaps 1-10% of Bitcoin fans. Everyone else would be running for exits with their panties on fire.

[mk4]

Personally, I'm for the latter because it's likely going to be the case. I don't much people think of bitcoin as a "safe haven" asset as of yet. But then again, we're just guessing.

I would be absolutely astounded if Bitcoin did well during a full on meltdown. It is a safe haven to some people, perhaps 1-10% of Bitcoin fans. Everyone else would be running for exits with their panties on fire.

Pretty much. Heck, I'd even be surprised if bitcoin stayed stable in USD price if such event occurs. It's pretty safe to assume that the people who actually owns bitcoin as a store-of-value is a small minority; most are still speculative investors that would dump their coins once bitcoin drops a significant percentage.

[Kuffy]

We are moving into uncharted waters right now. We have never had negative interest rates, or such an overvalued stock market. Fiat currencies always revert to their true value of zero, and this will happen, but it is difficult to know when. There is an increasing awareness of the current problems, and that is leading to an increase in the vale of gold, silver and gold mining shares. I'm a bit surprised that Bitcoin hasn't gone up as well, but then many people can't understand that virtual assets can have a real value. The over-hyped Corona Virus scare is being built into the black swan event that the Deep State wants to accumulate more real assets, and to sump their toxic debt.

It is difficult to know how this will affect Bitcoin. We know that the bankers and the elite are collecting Bitcoin for investment, and we know they will be releasing their own version of cryptos. I think that this will increase the scarcity of Bitcoin, and also build demand due to increased awareness. It is difficult to know when this will happen, and there will probably be some further drops in price as the influencers increase their holdings. It looks as if it will be a great time for scalping.

[Linkkoin]

bull: Bitcoin will rise in price because people will be moving money to safe haven assets.[/li][/list]
and..

• The bear: Bitcoin will crash because people will be selling their bitcoin for them to be able to afford daily needs(food, sanitation, etc).

Personally, I'm for the latter because it's likely going to be the case. I don't much people think of bitcoin as a "safe haven" asset as of yet. But then again, we're just guessing.

Therefore the question is - will they sell whole portfolio at once in the worst case scenario, or slowly in small parts. If the latter, and without panic selling off, we should rather not worry.

[lankymanx]

Yeh we dont know if this a good time to be having Coronavirus and/or stock crashes.
Printing money and raising the debt ceiling is such a crazy thing and more of a culprit rather than Coronavirus.
Lets see how Gold prices and Bitcoin pan out?
Lets see how BTCHalving is affected ?

[coolcoinz]

Personally, I'm for the latter because it's likely going to be the case. I don't much people think of bitcoin as a "safe haven" asset as of yet. But then again, we're just guessing.

I would be absolutely astounded if Bitcoin did well during a full on meltdown. It is a safe haven to some people, perhaps 1-10% of Bitcoin fans. Everyone else would be running for exits with their panties on fire.

To the majority Bitcoin is an investment, just like stocks and comodities and when the stock market crashes so will the other markets, lincluding forex and housing. It's all connected and Bitcoin will show its true colours after a while, when those who exited the stock market will look for an alternative that can bounce back faster and harder than stocks.
If the crash continues I expect Bitcoin to follow at first, but then be the first to bounce back. The halving brings a lot of fresh air and positive thoughts into this market and I bet it's going to outperform stocks and gold once again.

[hatshepsut93]

• The bear: Bitcoin will crash because people will be selling their bitcoin for them to be able to afford daily needs(food, sanitation, etc).

This assumes that majority of bitcoin investors are rather poor retail investors with no other assets or fiat savings, and I doubt that this is true - some portion of coins is held by whales, and many investors are likely belong to middle class and wouldn't need to dump their coins in case of a recession.

I think the bearish scenario is possible, but under some other mechanism. Maybe Bitcoin just isn't a good safe haven for such scenarios because of its volatility, so money will be moved to assets like gold.

[coolcoinz]

^^^
Look at the timing of your post and mine. I had to be first by a tenth of a second here. That's definitely a rare case.

Maybe Bitcoin just isn't a good safe haven for such scenarios because of its volatility, so money will be moved to assets like gold.

Historically, gold wasn't doing that good. When people escape from investments and a panic spreads it's rather "let's take out all of our money and hide it under the bed" attitude that prevails. People turn off thinking for a while and it takes time before they start investing again. It's not like they're selling stocks and immediately buying gold. They're afraid how other markets might react and want to sit and wait to see which ones will or will not be affected.

[Qcrypto]

^^^
Look at the timing of your post and mine. I had to be first by a tenth of a second here. That's definitely a rare case.

Nice catch.
Definitely worthy of a Topic somewhere

[rdbase]

-snipped-
The fact that Warren Buffett once again talked negative towards cryptocurrencies and Bitcoin could be the reason for people to sell out of fear.
Here is the video: https://www.youtube.com/watch?v=d6yqrwOZVjY
Is the stock market heading to a crash and recession?
Will Bitcoin follow?

But he talked negative about alot of other technology based stocks inwhich he will never own any in his portfolio. So dont expect him to start shilling on those either to pump his bags full.
Here is the full interview to see what he has to say about them:
https://www.youtube.com/watch?v=JvEas_zZ4fM
A two hours long interview from 89 year old money man.

[pawanjain]

We can already see the results since bitcoin's price has already dropped to $8800 from $10200.
We can't call it a recession but the crash in stock market has made the crypto market panic and people are selling their cryptocurrencies.
Altcoins are taking the biggest hit since they are decreasing in price in terms of BTC which is further more decreasing their USD price.

[Ryker1]

Well perhaps, the only reason bitcoin will get to a recession and be affected with the stock market's current bear is when investors panic towards it. In my opinion, --I don't actually see any valid reasons for these red numbers to affect the Bitcoin. In the case of the economic crash, the Bitcoin would most likely increase as the people would move their assets into Bitcoin to keep their wealth. So there is no point for the Bitcoin to go down with the effect of the global public stock markets. Indeed, Halving was the thing that made Bitcoin rise again and perhaps, halving is the thing we need to monitor. Not the global stocks exchanges.

[hatshepsut93]

Historically, gold wasn't doing that good. When people escape from investments and a panic spreads it's rather "let's take out alll of our money and hide it under the bed" attitude that prevails. People turn off thinking for a while and it takes time before they start investing again. It's not like they're selling stocks and immediately buying gold. They're afraid hos other markets might react and want to sit and wait to see which ones will or will not be affected.

You're right, especially since so many gold investors never own it physically and it's just another number inside a centralized database. Still, there's no difference for Bitcoin if people move their money to gold or cash, if its perceived as unjustifiable risk at times of a crisis, it will get dumped. So, the question is, how would hodlers act - are they bitcoiners first or traders/speculators first?

[Destroyeroff98]

As of today (26th January, 2020) stock market seems to be taking a huge hit.

Here are the standings of biggest indexes:

Dow Jones: -$840 (-2,90%)
S&P 500: -$94,49 (-2,83%)
NASDAQ: -$327,28 (-3,42%)



In correlation to the stock market, Bitcoin also followed with -$251,40 (-2,52%)



The fact that Warren Buffett once again talked negative towards cryptocurrencies and Bitcoin could be the reason for people to sell out of fear.
Here is the video: https://www.youtube.com/watch?v=d6yqrwOZVjY


Is the stock market heading to a crash and recession?
Will Bitcoin follow?

At the moment, the cryptocurrency market is very “dipped”. It seems to me that someone with a large number of tokens is manipulating of the market.

[boris2470]

As of today (26th January, 2020) stock market seems to be taking a huge hit.

Here are the standings of biggest indexes:

Dow Jones: -$840 (-2,90%)
S&P 500: -$94,49 (-2,83%)
NASDAQ: -$327,28 (-3,42%)



In correlation to the stock market, Bitcoin also followed with -$251,40 (-2,52%)



The fact that Warren Buffett once again talked negative towards cryptocurrencies and Bitcoin could be the reason for people to sell out of fear.
Here is the video: https://www.youtube.com/watch?v=d6yqrwOZVjY


Is the stock market heading to a crash and recession?
Will Bitcoin follow?

I will not believe that Warren Buffett could be an occasion for people to sell cryptocurrencies. His opinion is not very influential in the cryptocurrency market. The recession was foretold for a long time however I do not think that the market will not be able to recover

[kryptqnick]

Is the stock market heading to a crash and recession?
Will Bitcoin follow?

I think it's no big deal. The stock market is down about 3%, is it a significant event? While I do believe that at some point in 2020 the stock market will suffer a huge loss due to another world economic crisis, now it is still early to say when it is going to happen and what will trigger it. As for Bitcoin, it's down 6%, and it's probably because of the FUD that emerges when people like Buffett decide to publicly undermine Bitcoin... As for the reaction of Bitcoin in case the stock market goes down, I think Bitcoin might go down with everything else for a while, but it will win from this situation in the long run as it could be a way for investors to save the remnants of their wealth.

[sunsilk]

This is now where the speculators will think that bitcoin and the stocks are correlated.

Bitcoin is following somehow the trend of the traditional market but as we know, the behaviour of bitcoin is much better than them at least for other kind of risk takers. The bouncing will be quicker than the traditional stocks because of its volatility.

It would be amazing to see that bitcoin is getting back quickly while the stocks is on slow-paced recovery.