Bitcoin's Correlation with Stocks is Dropping

[davis196]

The Stock market is still down,because a lot of companies that have stocks included in the indexes are still suffering from the lockdowns.When the lockdowns are over,those companies will start to recover their revenue slowly.Bitcoin is not a stock.It's not tied to any company in the world.Gold is the same type of asset as bitcoin.
Like I said many times before,comparing Bitcoin with stocks is like comparing apples with bananas.

[Meowth05]

Stock and bitcoin are different market. Stocks are shares on the company that is sold publicly and bitcoin is more of a currency. They are both going down because we are facing a crisis and that explains the correlation of stock dump and bitcoin dump.

[kryptqnick]

I agree with those mentioning that Bitcoin and the Stock market never really correlated and the whole situation for these two is different, so no wonder they've parted ways. The stock market depends on the world economy and vice versa. If things are going well, there are good conditions for businesses to flourish, so does the stock. When it comes to Bitcoin, there are indeed some dangerous situations when there are bugs in the code, major countries speaking of restrictions or huge exchange hacks. These things would naturally cause the price to go down. However, the price usually goes up due to panic selling, when there isn't anything that really affects Bitcoin going on. And then there are events which affect the world population, so they can trigger a decrease in every area. This is what the pandemic announcement did to Bitcoin and Stock. However, since the stock is truly in trouble 'cause of the quarantine, Bitcoin is not, and thus seems to be recovering.

[Wexnident]

And I see no reason why it should be. Stocks are directly affected by the assets bound to them, just look at how oil and gold crashed. On the other hand, Bitcoin is a digital asset, one that isn't bound to anyone or anything. It's completely managed by the community that upholds it. That's it. The reason why BTC crashed can be attributed to people needing funds as well as seeing a massive crash in stocks, people thought that BTC would probably follow. It's basically a bundle of fear and the like that caused the crash, which is completely unreasonable since anyone who trades in BTC and stocks should know the difference. Another probable reason is it dropped because not of stocks, but because the economy itself dropped. With how majority of the companies outside have closed down temporarily, you could expect a difference in the normal cashflow to the current cashflow.

[FanatMonet]

This is very good news. But Bitcoin has shown signs for quite some time that it is independent of stocks. The collapse of markets, bitcoin and gold, was primarily associated with the collapse of oil, and there was also the fear and panic from the coronavirus.

[Hypnosis00]

Sometimes they are correlated with each other but it never tells that they are both moving at the same scheme.
Maybe at this time, it gives them a way to interact with each other because of the pandemic issue. But looking at how the market trend shows us in the past few days, it started to grow unlike what it happens to the global market. This is an indication that they are not bonded to each other and crypto is different and has its own economic system.

[sunsilk]

Now, this got me thinking what's behind this recovery for bitcoin. Is this now being correlated to the recent US' stimulus efforts?

That was completely missed by me until someone brought it up on another thread. It's possible since gold is no longer really an uninflated asset that people are turning to bitcoin as the government's inherently have no control over its function and there's 21 million until the community technocratically decides otherwise.

Therefore, we can't conclude but we can assume that it's because of that.

This is very good news. But Bitcoin has shown signs for quite some time that it is independent of stocks. The collapse of markets, bitcoin and gold, was primarily associated with the collapse of oil, and there was also the fear and panic from the coronavirus.

It is independent but we can't ignore the fact that when stocks fell, bitcoin followed or vice versa. That's why this assumption that we have of thinking that there's correlation between the two has been made. And this is why op made the thread because bitcoin seems moving up.

[Little Mouse]

Bitcoin was never corelated with stock market unless major economic issue arise like corona pandemic has dropped every stocks and bitcoin price. Stocks price depends on things related to that particular stock like company to perform good or bad but bitcoin price depends on news related to bitcoin. Both are different categories and price correlation is just a coincidence.

But its correlated on the current happening since the people are securing to buy some food stocks that's why we see the price of it got drop for the past several months. and although the stock and bitcoins doesn't have relation at all but in the times of crisis both will suffer from major drop out.

Major economic changes are always same for most of the investments, that's what I said too. Check the bold part of my post. It is common for stock or gold or crypto. By the way, BTC had recovered its most current drop.

But one thing good in stock is they can easily recover when market is in good shape but its so questionable for bitcoins to pump since we need a mass adoption.

You are wrong, bitcoin can recover and has recovered faster than any other investments. If economy gets better position, bitcoin will recover fast although it has already.

[Sircoss]

While stocks are losing, bitcoin has risen in price again. This is not at all surprising.