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

[exstasie]

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?

This isn't about correlations, at least as we normally think of them. It's about market sentiment and investor risk tolerance.

When an economic crash occurs and the market anticipates a recession, virtually everything crashes except for stable fiat currencies and low risk bonds. It's a global flight to safe, risk-off assets.

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[coingecko]

The incident last week was probably driven by cascading margin calls.
Once the dust settle, that is after the coronavirus is beaten and after central bank completely intervened with the markets - it would be clearer on how correlative bitcoin is to the stock market

[Finestream]

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.

Very clear advantage of crypto and why people should shift to trading crypto now.
However, on the effect on the pandemic, I guess crypto would also suffer the fall like the stocks and since our economy is in big trouble now.
It's unclear as to when the situation will be under control so people are in panic, investing is not good for them.

With the money flowing in crypto as it's definitely the most unstoppable market now, hopefully this brings positive effect in the long run.

[South Park]

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.

Agreed, the correlation is not perfect but it is obvious that when the economy is doing well and there is a lot of free cash available then people are going to take more risks than they would under more difficult circumstances, and now that the stock market has crashed and we are officially in a bear market then other speculative assets are going to go down as well as people prefer to have cash in hand in the case the situation becomes even worse than what we have right now.

[Shasha80]

Bitcoin price movements up and down there is no correlation at all with the stock market. Because the stock market is moving based
company conditions, the world economy and the politics of a country. Unlike the cryptocurrency market, it moves based on supply and
demand directly from investors. So if you find the price movements of crypto and stock markets look the same, it is just a coincidence.

[coinfinger]

Many people thought it was correlated because of this drop, many people acted as if stock market was basically equal to crypto market, many of you talked about how bitcoin moved depending on the general economy and basically mimics it or whatever. What do you guys think now? There is no recovery and everything still sucks but bitcoin is up. Do you think it is correlated now?

Do you still believe it mimics the market? It obviously doesn't. Yes, there was something major and huge and that is why everything got affected, there was nothing in the finance world that wasn't affected, so we got affected by it as well and moved down, but look at us now, we are back to being a bull and strong market yet again, just stop being afraid of bitcoin market because in the long term it is always amazing.

[clark.well]

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Well the problem here is mostly assume that everything has a relation but the truth is it doesn't have one.
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Well, this just makes us trade believing that bitcoin have relation to others. But it seems, i am wrong. I need to reflect from this first before anything else.

[Negotiation]

There is nothing to reflect here that the price of bitcoin never correlates with the bottom and the correlation with the stock market In both investments the stock market usually controls the bulls of the market. Bitcoin is under the control of none Demand increases as prices rise Demand decreases as prices fall It will depend on the investment.

[South Park]

Bitcoin price movements up and down there is no correlation at all with the stock market. Because the stock market is moving based
company conditions, the world economy and the politics of a country. Unlike the cryptocurrency market, it moves based on supply and
demand directly from investors. So if you find the price movements of crypto and stock markets look the same, it is just a coincidence.

The correlation does not need to be perfect, there are some studies showing that recently there seems to be some correlation with the stock market and in my opinion that makes sense, as this market gets more popular and different traders and investors decide to invest in cryptocurrencies and the stock market then if the stock market crashes then cryptocurrencies could crash as well as those investors decide to sell some of their bitcoin and altcoin holdings to cover their losses pushing this market downwards as well.