Does the bitcoin price go up and down correlation to the stock market?

[FanEagle]

Crypto markets and stock markets might not always run simultaneously but they might work on a constant graph in conditions like the current ones. In the current market conditions, the markets are dependent on the fundamental analysis rather than technical analysis. Usually the markets depend on 2 types of analysis consisting Technical Analysis and Fundamental Analysis.

Forex and crypto markets might work on a same graph in fundamental analysis but they would never be same in case of technical analysis. Both the markets are entirely opposite but a common market crisis like the current ones would make both the markets work on a same scale. So yes, perhaps the forex markets would also dump on this monday.

[TrevorS]

Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies,
 which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

[exstasie]

Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies, which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

Institutional investors hedging their risk played some role, but I think the overwhelming panic from world markets had a strong effect. I have always said BTC would suffer in any economic crash or recession scenario, and that's exactly what happened. High risk assets like BTC got massacred.

There were also some additional factors that made this crash especially bearish:

• The Bitmex DOS and mass liquidation
• The timing of the drop coincides with large movements (assumed to be liquidations) by the PlusToken wallet fraudsters

[Oasisman]

Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies,
 which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

It happens many times already. I mean when the stock market booms, cryptocurrency tends to follow, and it's very evident in the current situation where the stock has fallen so hard and so does the crypto market.
Though there were some other reasons for this crash (e.g plustoken scam and dump), but the pandemic is surely one of them.
I'm not sure but it seems like Bitcoin has a slight correlation with the economic status.

[milewilda]

On this weekend the crypto market goes down.  Will it predict the stock market to go down on Monday? 

Its been said for how many times that previous markets like stocks/forex etc. has nothing to do with crypto market or does have correlation when it comes to price movement.
They are on different market or factors that do affect its movements.We know that crypto is very volatile and very unpredictable one compared to stocks.For now
we can say that they might be similar in times of crisis.We cant point out accurately but somewhat we can presume that its been affected by the same reason.

[Sadlife]

It look like that even Institutional investors are heavily invested in Bitcoin and other Cryptocurrency, the fluctuations of the stock markets made them liquidate their Bitcoins in order to cover losses cause some of them might have debts to pay, others are margin traders. So that's why the price plummeted hard this past week.

[Ridwan Fauzi]

I heard sometimes ago who stated that bitcoin be like traditional market with the reason bitcoin and traditional market were decreased.

I don't have much knowledge about traditional market like stock and etc. But I just have an opinion that these thing is  different. Bitcoin will have its own market, we know its volatility who didn't have by stock exchange.

That was just coinsident, the decreased price was affected by corona virus and the people just scared so as they sold the asset and move to the place that they consider is safe like gold.

[South Park]

Everyone is talking about the lack of correlation. But one thing needs to be understood. Large players in the stock markets also own large volumes of cryptocurrencies,
 which in turn allows them to create price drops. Note that the crypto market began to fall after the stock market fell and not simultaneously with it.

We must also not forget that in times of crisis like the one we are going through even good assets go down in price as people try to recover their losses by finally realizing their potential profits in other assets, so someone invested in the stock market which was losing a lot of money could have no other option but to sell his bitcoin to recover some of his losses, this in return makes the price of bitcoin to go down as well as many people do the same generating the crash we saw.

[btcholder]

On this weekend the crypto market goes down.  Will it predict the stock market to go down on Monday? 

I don't think any trade marketplace run that way. Bitcoin or crypto market never depend on stock market and stock neither depend on bitcoin market. Crypto and Stock markets are totally different from each other. Stock is not too sensitive market like crypto currency. Crypto currency is more complex than stock market. So it's totally useless predict in my thought. Read this amazing article you will be find why they didn't follow each other.

[Janation]

It is already said that it has no connection at all.

Some stocks might be related to cryptocurrency but it is not directly related and will affect the market as a whole. Some say that it is connected to stock because when the stock fell, the market follows but in that case, I think that is just a coincidence. If Bitcoin's price fell, for this reason, that would be the same but usually every time different reasons with the stock market.

[rodskee]

On this weekend the crypto market goes down.  Will it predict the stock market to go down on Monday? 

for my point of views  is YES,because i believe that Bitcoin holders also looking at the economic status and that can be checked by looking at what the stock markets doing so basically we are going with the stocks now as the reason is obvious.
but anyway the whole world is struggling now because of the Virus effect so let us look at the Good thing and not the bad,buy more for cheaper price and sell soon.

[Maestro75]

As far as I know there is no proven correlation between crypto market and stock market. Cryptocurrencies are not in direct connection with stock market and factors that influence these two markets are completely different. In fact activities in real world, to say so, like financial and economy situation still doesn't significantly influence crypto market.
So, if happens at the same time that movements in stock market and crypto market look similar and connected that is to my opinion pure coincidence.

The way I see this is that of correlation. People take out money from the stock exchange and put it in cryptocurrency. Investors believe it is a safeguard for their investments. But this at the moment has not held because people are selling off their bitcoins for food at the same time as selling off their stocks because of coronavirus. So the two industries are falling at the same time.

[MWesterweele]

As far as I know there is no proven correlation between crypto market and stock market. Cryptocurrencies are not in direct connection with stock market and factors that influence these two markets are completely different. In fact activities in real world, to say so, like financial and economy situation still doesn't significantly influence crypto market.
So, if happens at the same time that movements in stock market and crypto market look similar and connected that is to my opinion pure coincidence.

The way I see this is that of correlation. People take out money from the stock exchange and put it in cryptocurrency. Investors believe it is a safeguard for their investments. But this at the moment has not held because people are selling off their bitcoins for food at the same time as selling off their stocks because of coronavirus. So the two industries are falling at the same time.

For me yes of course, when Bitcoin price is go up and down the market is also moving, and I think they are related to each other. If you notice when the Bitcoin price going down the market and all crypto is also going down too, but when its goes up you will see the matket is also changing and the all crypto is also rising one by one.

[mu_enrico]

Economic conditions influence all speculative assets, like gold, stocks, crypto, etc. Why? Because people put their "free money" to buy these assets. When the availability of free cash increases, these assets' prices would increase as well, and vice versa. The availability of free money is influenced by inflation, interest rates, GDP growth, etc.

However, it may not be a perfect correlation, especially in a good economy, because people have more investment options available.

[TrevorS]

It is already said that it has no connection at all.

Some stocks might be related to cryptocurrency but it is not directly related and will affect the market as a whole. Some say that it is connected to stock because when the stock fell, the market follows but in that case, I think that is just a coincidence. If Bitcoin's price fell, for this reason, that would be the same but usually every time different reasons with the stock market.

Said by whom? You? Are you the ultimate truth?
How then do you explain today's growth that followed the rise in oil prices by 11%? This is probably just a coincidence, and the crypto market lives its own life separate from the rest of the world. It’s ridiculous.

[jostorres]

It goes up and down according to stuff going on and sometimes when something happens it can affect both stock markets and bitcoin. Just because there is this thing that affects the prices of stocks and the prices of bitcoin doesn't mean that bitcoin is related to stock markets directly.

Just to give an example tomorrow there could be bomb going off in some big major city and stocks could go down there, that doesn't mean bitcoin will go down as well, or maybe tomorrow recession hits hard and prices go up and inflation happens, doesn't mean bitcoin has to be affected. We almost had a war, bitcoin wasn't affected. So, there are times bitcoin and stocks move differently, and times when they move together, pandemic is just one of the reasons why they could move together.

[Subbir]

I don't think that the worth of Bitcoin increases below and below the stock exchange Because Bitcoin doesn't control anyone it depends on the market. it's determined by decentralization and market whales The stock exchange is typically related to the economy company If the economy of any country is disrupted the stock exchange goes down and it's nothing to try to to with the worth of Bitcoin.

[cabron]

Both markets were crashing during the time when it was pronounce Corona is already pandemic, I say both markets correlates to the fear of the situation and uncertainty. Cryptocurrency are growing as of now, I am not sure about the stocks market because stock market of some countries are being stopped. The traders in stock market are being held to stop the shortselling while crypto market goes on all year round.

[beerlover]

Nobody suspected it, you can't just blame people for not seeing how stock markets would be correlated to crypto.

It wasn't really correlated before, why it is now we don't know. However we are in a situation right now when everything loses, not just bitcoin or not just stocks but EVERYTHING is losing, hell even house prices are down right now, HOUSE PRICES, why would a house that worth 100k yesterday would worth 80k today?

I do not understand whats going through peoples minds, I have no clue how this finance crisis things works at all, I am not a financial analyst or anything or I can't even read charts so I don't know why but seriously, right now there is only that small mask type of thing that gained value, aside from that there has been nothing at all.

[Assface16678]

Nobody suspected it, you can't just blame people for not seeing how stock markets would be correlated to crypto.

It wasn't really correlated before, why it is now we don't know. However we are in a situation right now when everything loses, not just bitcoin or not just stocks but EVERYTHING is losing, hell even house prices are down right now, HOUSE PRICES, why would a house that worth 100k yesterday would worth 80k today?

I do not understand whats going through peoples minds, I have no clue how this finance crisis things works at all, I am not a financial analyst or anything or I can't even read charts so I don't know why but seriously, right now there is only that small mask type of thing that gained value, aside from that there has been nothing at all.

Previously at this year of 2020, there are a lot of things happened in just this January up to this March and one of this is the market price of the stock market because there is a shocking event happening and that is the spreading of the virus rapidly and some of the investor and play safe and pull their money into fiat currency and use that money to spend into the things they need like foods, clothes and hygiene to avoid the spreading of the virus, until now the market price of the bitcoin fall down into 3.9k dollars and recovering and becomes stable for a while into 5k dollars and from the previous weeks the price again becomes huge because there is an investment that happens and the profit we have today is over 6k dollar price of the bitcoin. Still, we cannot tell what happens next to the market price of the coin because still, it depends on the economy if they are trying to support the use of cryptocurrency and make a lot of contribution to the stock market. It takes time again before becomes stable and reaches the previous market price again.