[2020-03-09] Silver Lining for Bitcoin Amid Global Market Panic

[blacky90]

As global stock markets saw massive sell-offs overnight, cryptoassets also fell sharply, with both bitcoin (BTC) and ethereum (ETH) recording double-digit losses over this past weekend. However, some industry observers claim that crypto’s mainstream moment as a utility may finally be here, but early-stage projects with limited adoption might become ghostowns.

As of press time on Monday (08:45 UTC), bitcoin slightly recovered and is down by 8.6% to a price of USD 7,998, while ETH is down by 9.5% to USD 208. Many smaller altcoins from the top 10 are seeing even bigger losses of between 9% and 14%.

https://cryptonews.com/news/silver-lining-for-bitcoin-amid-global-market-panic-altcoins-5976.htm

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[Betwrong]

Although the debate of whether bitcoin is a risk-on or risk-off asset continues, most analysts agree that it is above all an uncorrelated asset.

Exactly. So, why should it be falling during the stock market decline? I think it's a coincidence, and the real reason for the current Bitcoin crash is the Plus Token ponzi scheme organizers cashing out the stolen money.

But I may be wrong. What do you guys think, why is this crash?

[gentlemand]

But I may be wrong. What do you guys think, why is this crash?

Because enough 'institutional investors' own enough BTC now. The first to go will be their riskiest asset. Same goes for less professional money.

Plustoken could be a thing too of course.

It's too soon to make calls about anything so let's see what happens in the coming weeks. You can claim uncorrelated when the wider market has basically done the same thing since Bitcoin was born - go up. When it stops doing that things might become a bit more definitive.

[buwaytress]

Although the debate of whether bitcoin is a risk-on or risk-off asset continues, most analysts agree that it is above all an uncorrelated asset.

Glad "most analysts" are now coming to their senses. First of all, safe haven is a term for old finance. Bitcoin users really don't tend to see things in that light. Secondly, there really, really is no correlation except the ones we try to find in Bitcoin. Sellers sell, buyers buy, and when there are gaps in orderbooks, these are quickly filled.

The real silver lining's been here since 2018. We can focus on building and using instead of speculatin.

[Theb]

Exactly. So, why should it be falling during the stock market decline? I think it's a coincidence, and the real reason for the current Bitcoin crash is the Plus Token ponzi scheme organizers cashing out the stolen money.

But I may be wrong. What do you guys think, why is this crash?

Could be a big possibility especially when you take into consideration that all 13,000 BTC is being sold rapidly on a short period of time. However this might not be the case, during the last two weeks I was defending that the price drop was just due on Bitcoin and the crypto market correcting however the recovery for Bitcoin should have taken place by now instead what happened is we have dropped even more so I'm really beginning to believe that this scare from the outbreak is even affecting the crypto market right now. Investors from the different markets might be following each other because of the fear that it will even fall further and they aren't wrong on putting their capital in cash right now

[gentlemand]

Investors from the different markets might be following each other because of the fear that it will even fall further and they aren't wrong on putting their capital in cash right now

I don't understand why more people aren't assuming that the more crypto buyers there are the greater the overlap there'll be with stock markets because they're the same people.

The earliest owners may never have been near a stock market in their entire lives and still plenty of newbies here never have. The newcomers arriving and making powerful buys did not get that money from using their graphics card back in the day. They came from conventional markets.

[Harlot]

The newcomers arriving and making powerful buys did not get that money from using their graphics card back in the day. They came from conventional markets.

Or there are also first timers in a investor's market looking for some fast moving assets, and like what you have said some might not even have entered in the stock market in the first place. The "overlap" will be always there especially when you think about traditional investors venturing out to new markets looking for some fast movers but it won't be that big considering that investors in the stock market are always in the conservative side. I was one of the people that believe the COVID 19 has no connection with the recent drop but it is evident right now and it is causing a lot of panic on all investors from different markets, it might struck the crypto market late but right now I am seeing the crypto investors might be going on the safe side cashing out their money temporarily.

[bbc.reporter]

Although the debate of whether bitcoin is a risk-on or risk-off asset continues, most analysts agree that it is above all an uncorrelated asset.

Exactly. So, why should it be falling during the stock market decline? I think it's a coincidence, and the real reason for the current Bitcoin crash is the Plus Token ponzi scheme organizers cashing out the stolen money.

But I may be wrong. What do you guys think, why is this crash?

It might also not be a coincidence because as we already know, bitcoin is used more as speculative investment than as a form of currency.

Where can we find the data to compare transactions in or out of exchanges and transactions for merchant payments?

[Theb]

Investors from the different markets might be following each other because of the fear that it will even fall further and they aren't wrong on putting their capital in cash right now

I don't understand why more people aren't assuming that the more crypto buyers there are the greater the overlap there'll be with stock markets because they're the same people.

The earliest owners may never have been near a stock market in their entire lives and still plenty of newbies here never have. The newcomers arriving and making powerful buys did not get that money from using their graphics card back in the day. They came from conventional markets.

I didn't say that there wasn't an overlap in the first place. Either markets will share some investors who will be trying to diversify their money onto different markets, but the thing is do we really think that the overlap is that big to consider that it can affect the market? I'm not sure about this one but I don't think that there is a hefty amount of investors existing in both markets that could start to influence the market just because they offloaded their assets in both of them. They might trigger something but the real ones that will be affecting the market is what majority of the people in that market is feeling about the news and how many people will feel the same way or follow what they are doing currently. So right now we have a global pandemic and we started to see stocks fall, airlines having empty seats, lost jobs, and pay cuts all of this are also causing FUD in our own crypto market right now.