BTC and Stock vs Oil price

[Febo]

The stock market is impacted heavily due to the drop in oil prices. Do you all think it will impact the BTC prices as well?

LOL. It dont even influence heating oil prices in Europe. I checked price yesteryear and is 2 cents lower as it was a week ago.  That negative price was of Oil in Oklahoma and you needed to pick that oil in one day time. There were simply not enough people to do it. So they paid them to do it.  Hopefully heating oil prices will decrease in next few years in Europe.

[stomachgrowls]

All markets are being stomped by this pandemic but I don't think that there's correlation for bitcoin and oil markets. They are separate markets. The latest news about oil was that it plunged to negative.

Yet, we see bitcoin stable to $6,900 - $7,000.

People are really fan of connecting things and its not actually a surprising thing yet this had been always a topic for years or since the crypto market had began where there are people who
do always speak or do correlate crypto market with traditional forex/stocks etc.

I do believe or agree on what you have said that all markets been stomped by this current pandemic which is not really that surprising yet we know on how it heavily affected the entire world.

For now we cant do anything but to hope that this would be over so that it would be normalize once again.Btc price might not be affected that much but we are talking long term aspect on here.

[bakasabo]

But I don't think it has something to do with the price of oil. I cannot see a connection. Why does Bitcoin's price fall when oil price falls? In what way should they be connected?

At first my thought ws, that people who have a lot of funds invested in oilmarket also have a lot of investments in cryptocurrency. When oil price began to go down, they pulled the money from cryptocurrency to save oil price from falling deeper. That is why there was a half day/ one day gap between price drops of oil and bitcoin.

What do you think about that? Does my idea "have right to live" or it is just rubbish?

[exstasie]

The stock market is impacted heavily due to the drop in oil prices.

Not really. The S&P 500 is only down 2.7% for the week. The energy sector is given very little weight in the S&P 500 due its poor performance in recent years. It only represents 2.77% of the equity market. https://eresearch.fidelity.com/eresearch/markets_sectors/sectors/si_weighting_recommendations.jhtml?tab=sirecommendations

What I'm more concerned about is WTI crude staying below $30 (or even $20) a barrel for a prolonged period of time. That will crush any hope of profitability in the US shale sector and will push many firms into bankruptcy. That could mean big losses in the high yield bond market, which would spill over into the financial sector. If we continue seeing economy-wide losses quarter over quarter, loan and bond defaults will cause those economic losses to start translating into losses on bank balance sheets.

Banks are weighted 4x heavier in the equity market than the energy sector, so when they start losing it'll be reflected much more clearly in stock indices. More importantly, if we do start seeing major bank failures down the line like 2008, liquidity will quickly dry up as the banking system stops lending to conserve cash. When banks stop lending, the liquidity underlying the cash flow of the brick-and-mortar economy will dry up too. That's the Fed's worst nightmare.

Do you all think it will impact the BTC prices as well?

Stocks and BTC are tightly correlated right now. Oil, not so much. When the stock market is finally done relief rallying, I expect BTC to fall too.

Oil is mostly interesting because it's reflective of global economic activity. What happens in the oil market is important, but it will rarely be felt in the equity markets immediately.

[shoreno]

At first my thought ws, that people who have a lot of funds invested in oilmarket also have a lot of investments in cryptocurrency. When oil price began to go down, they pulled the money from cryptocurrency to save oil price from falling deeper. That is why there was a half day/ one day gap between price drops of oil and bitcoin.

What do you think about that? Does my idea "have right to live" or it is just rubbish?

some could be investing on both but some arent  .  those who invest both can do what your saying   .

i see many people talking about the price of oil lately and they are planning to invest on it but take note these people dont invest on oil before but these people are involved on cryptocurrency so yeah you could be right again   .  btc/cryptos and oil dont have direct relation but they have an indirect impact to each other if one of them crash or pump   .

[coinfinger]

The stock market is impacted heavily due to the drop in oil prices. Do you all think it will impact the BTC prices as well?

Oil price has fallen to a negative , and we all know that it is because of the Coronavirus pandemic. A lot of things has been stopped. The government placed a travel ban and has stopped people from moving from place to place to avoid the spread of the Coronavirus.

This has affected oil price seriously to the extent that sellers now have to be paying the buyers to take the oil out from them. But as for whether this is going to be affecting Bitcoin? I don’t really think so. I have once asked myself this question that you’re asking now, and it led me to do some research which I did to understand if it’s going to happen. According to an article I read on Cryptopotato.com, it’s not likely to happen.

[brightemo]

BTC is not connected to oil directly but big crush at stock market may cause big crash at crypto market

[Sanugarid]

The stock market is impacted heavily due to the drop in oil prices. Do you all think it will impact the BTC prices as well?

Oil price has fallen to a negative , and we all know that it is because of the Coronavirus pandemic. A lot of things has been stopped. The government placed a travel ban and has stopped people from moving from place to place to avoid the spread of the Coronavirus.

The only vehicles that is being use now is either under government plates or companies doing work for government to aid its people. Airlines obviously shut their operation, cruise ships docked at their last pier and land trasportation has been stopped so there would be no high usage of oil that's why the negative price happened a few days ago.

This has affected oil price seriously to the extent that sellers now have to be paying the buyers to take the oil out from them. But as for whether this is going to be affecting Bitcoin? I don’t really think so. I have once asked myself this question that you’re asking now, and it led me to do some research which I did to understand if it’s going to happen. According to an article I read on Cryptopotato.com, it’s not likely to happen.

I knew it from the start, there will be a huge impact for the oil price, the price of oil now is what as it is when the local suppliers got their stock so there will be no changes at all. Oil has nothing to do with bitcoin, I don't see any price reflection of oil to bitcoin.

[sunsilk]

All markets are being stomped by this pandemic but I don't think that there's correlation for bitcoin and oil markets. They are separate markets. The latest news about oil was that it plunged to negative.
Yet, we see bitcoin stable to $6,900 - $7,000.

I do not share this opinion because I can't believe one currency can exist separately from another.
We have one big world economy which incudes stocks, oil, cryptos and fiat.
One changes and it will influence other ones for sure.

I do understand your opinion because the last time I've seen the stock markets got a dump, bitcoin and alts was affected that's why I can consider what you have said.

But this time, as for oil and bitcoin, the direct assault and affection haven't been seen by me that's why I've said that opinion. There were times that there's like a domino effect for bitcoin and stocks.

[bearexin]

The stock market is impacted heavily due to the drop in oil prices. Do you all think it will impact the BTC prices as well?

We are not sure about this, but so far the Bitcoin price has not been affected in any way. The price increased to $7,500 and since yesterday it has remained stable at that rate and has not made any other big move yet, but remained at the same price rate. Maybe the oil price affected Bitcoin earlier this year when the price dropped, but right now it is not affecting Bitcoin and I don’t think it will again. I am not sure even sure if it has affected Bitcoin in any way at all.

I only believed that Coronavirus affected the price of Bitcoin and not oil price, but some have claimed that oil price was part of what led to the fall in price. And some also claimed that the PlusToken scam was also part of it. Right now the price is on growth, and it’s likely to keep growing.

[Sadlife]

If it weren't for the The Fed stepping in to stimulate the US economy with trillions of dollars of quantitative easing and rate cuts and buying of corporate debts then the stock market would suffer the same fate.
As for Bitcoin i dont think the price is correlated with the stock anymore because it already had a huge dump shaking off Institutional, stock and weak investors. I think the people who invested in Bitcoin are the ones who believes that it's a hedge for a massive financial crisis.

[The Sceptical Chymist]

The stock market is impacted heavily due to the drop in oil prices. Do you all think it will impact the BTC prices as well?

I'm not so sure about your initial premise, that this sharp drop in oil prices has had an independent effect on the stock market.  I don't really follow what the major indexes are doing (like the Dow, S&P 500, etc.) but the big pharmaceutical stocks I do follow have been doing pretty well, and I don't think stocks have gotten hit anywhere near as hard as oil has.

It's not the stock or oil markets which are going to affect bitcoin.  It's the underlying factors that affect all markets, i.e, the effects of the COVID-19 outbreak and society's reaction to it.  Bitcoin has done much better than I initially thought it would, though there's no telling whether that's going to hold.  If society starts reopening businesses and people start getting back to work, that ought to help oil, stocks, and probably bitcoin as well.

[bits4books]

Yes rather than no.
BTC is very much dependent on real people who live in an ordinary world where there is a global stock market - of which cryptocurrencies are dependent, whether we want it or not.
And when the main indicator (a bright example - oil) begin to sharply drop, entire market in general will drop too. Including the cryptocurrency market, because in the first place there are traders who like news trading

[goaldigger]

The stock market is impacted heavily due to the drop in oil prices. Do you all think it will impact the BTC prices as well?

Bitcoin seems ok right now because of the pump on its price, and as we can see the oil price is recovered a little bit but still the market recession is coming. Bitcoin will prove itself to be a good safe haven same as gold then we have to wait for that, stocks and oil moves the same but bitcoin should be on a different trend.

[silversurfer1958]

I do not think that oil price will have an impact on BTC price. Because the price of oil decreased due to the significant reduction in transportation, countries have ordered to restrict the movement of people due to COVID-19. This led to a serious drop in oil prices. In addition, there are 15 days until the Halving BTC day, I think the value of BTC will increase sharply because the difficulty of mining  a BTC will be more difficult.

[Barbut]

I do not think that oil price will have an impact on BTC price. Because the price of oil decreased due to the significant reduction in transportation, countries have ordered to restrict the movement of people due to COVID-19. This led to a serious drop in oil prices. In addition, there are 15 days until the Halving BTC day, I think the value of BTC will increase sharply because the difficulty of mining  a BTC will be more difficult.

BTC and stock markets are not connected, but big oil companies are part of stock market! Now we see how strong the stock market is, what happens with oil can happen with anything else, the stock market can fall not to zero, it can go in minus! And now I would like to see some explanation of how the stock market is safer than the crypto market? Who is that person that can convince me in that now after what we saw in the last months? And I would like to get worse for them, only like that they will realize what crypto is and how safer it is, and they will join with their tails down.

[exstasie]

I'm not so sure about your initial premise, that this sharp drop in oil prices has had an independent effect on the stock market.  I don't really follow what the major indexes are doing (like the Dow, S&P 500, etc.) but the big pharmaceutical stocks I do follow have been doing pretty well, and I don't think stocks have gotten hit anywhere near as hard as oil has.

Oil is down 80% this year. In comparison, the S&P 500 is down 15-16% from its ATH.

What worries me is the oil market reflects actual global economic activity. If oil demand is this low, it suggests the global economy is really crashing. The stock market meanwhile is completely speculative, running off optimism that an imminent economic reopening will reverse all the economic damage from the past 2 months, and life will just go back to normal.

I think stock investors have their head in the clouds. Businesses can't just shut down for months and reopen as if nothing happened. The bailout loans are going to leave many companies up to their eyeballs in debt. Consumers are also losing confidence and are making much less money now. I don't expect job numbers to return to January 2020 levels for a long time. A lot of these "temporary" furloughs will become permanent job losses when businesses realize economic demand has plummeted.

Do I think stocks will keep grinding upwards for a while longer? Yes, but I also think this relief rally will end in tears.

[Spaffin]

Guys, It seems to me that the cryptocurrency market will only benefit from this situation, which arises from the coronavirus pandemic.  For example, most citizens of the United States of America put all their savings into securities, including oil.  If at the beginning of the water under the presidency of Donald Trump, citizens' incomes were at the level of 2% per annum, then today income has decreased by tens and hundreds of times to almost minimal sizes.  if the problems due to coronavirus are exacerbated, then for every US citizen very bad times will come.  People will look for alternative sources of profit, and cryptocurrency is a very profitable asset for investment.  And this is the situation all over the world, and not just in the USA.  The fact is that the demand for oil is also falling today, as people will take more care of alternative energy sources, as O. will think more about their future and their health, which means they will pay more attention to problems that harm the environment.  Of course, oil fell primarily due to the lack of agreement between the guardian countries and Russia, but nevertheless, the current trend in the market should have manifested itself for a long time.  Thus, if we consider the situation through the prism of the prospects of the cryptocurrency market, then Bitcoin, in my opinion, may become more popular due to the economic crisis and the coronavirus pandemic.

[Sadlife]

No i dont think it will, the recent major dump in BTC has shaken off weak investors and newbie traders. The price between stock and oil is not correlated to BTC anymore and reversal in Cryptocurrency market has begun when it broke key resistance. I think many people are migrating to BTC because they need a safe haven.

[monineklutak]

The stock market is impacted heavily due to the drop in oil prices. Do you all think it will impact the BTC prices as well?

the fall of oil prices does not seem to affect the price of Bitcoin, instead it is an advantage for Bitcoin, look at the day when the price of oil fell, what happened to Bitcoin actually increased to $ 7800