When the US stock market goes down Bitcoin goes down

[greentech2]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

[dragon695]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

Basically, it's just the common reaction of investors. When the world's economy is at risk of not gaining but recessing, investors seem to hold their investment rather than investing in any kind of project. It doesn't matter whether it is the stock market or the cryptocurrency market, investors still do the same thing. Personally, I think the stock market and the cryptocurrency market hardly have anything in common that can affect the other. However, they are all affected by the economy of the world!

[lillobo]

Bitcoin is not apart of the economic system. The only thing is when it does crash those that invested in bitcoin will lose their investment. If the stock market crashes, that usually means unemployment rises, and if you don't have a job, you won't be able to make your payments.  When stock markets crash, investors usually move their money to the Bond Markets until stability returns to the Stock Market.

[Aaroenz0r]

Bitcoin is not apart of the economic system. The only thing is when it does crash those that invested in bitcoin will lose their investment. If the stock market crashes, that usually means unemployment rises, and if you don't have a job, you won't be able to make your payments.  When stock markets crash, investors usually move their money to the Bond Markets until stability returns to the Stock Market.

Agree! All of the markets are affected directly by the economy. Especially in the pandemic, the economy of the world is hardly increasing. Therefore, cryptocurrency market is not an exception, it also decreases! It's not too surprised though!

[Etranger]

Bitcoin is not apart of the economic system. The only thing is when it does crash those that invested in bitcoin will lose their investment. If the stock market crashes, that usually means unemployment rises, and if you don't have a job, you won't be able to make your payments.  When stock markets crash, investors usually move their money to the Bond Markets until stability returns to the Stock Market.

Agree! All of the markets are affected directly by the economy. Especially in the pandemic, the economy of the world is hardly increasing. Therefore, cryptocurrency market is not an exception, it also decreases! It's not too surprised though!

The stock market and the cryptocurrency market are both affected by the economy of the world, but the cryptocurrency market does not show such a strong dependence, as it is characterized by supply and demand, often based on the emotions and expectations of traders. Cryptocurrencies do not have a material foundation, so the "external" news will not affect the cryptocurrency market as directly as the stock exchanges.

[davis196]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

The global stock markets were down because of the expectations of a second wave of the coronavirus pandemic.The crypto markets shared the same fear.Basically the greed and optimism returned on both the crypto and stock markets during the last 2 months,caused by the slow recovery and removal of the lockdowns.
Now all that optimism about a fast economic and financial recovery might disappear.
The "mood of the trader" right now is just uncertainty (if we can call this mood).

[davidroux]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

The global stock markets were down because of the expectations of a second wave of the coronavirus pandemic.The crypto markets shared the same fear.Basically the greed and optimism returned on both the crypto and stock markets during the last 2 months,caused by the slow recovery and removal of the lockdowns.
Now all that optimism about a fast economic and financial recovery might disappear.
The "mood of the trader" right now is just uncertainty (if we can call this mood).

I agree with you. Investor sentiment is still very worried, and during the past few months, the stock market has continuously suffered a new collapse. I think COVID-19 has ruined the entire world economy and may take a long time to recover. I never expected this to happen because it affected my current job, and now I only have a way to trade to earn a little money to make ends meet.

[rexxarofmoknathal]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

Let's get one thing straight, there is little evidence to suggest correlation between the stock market prices and the crypto market changes. What you saw and described above is coincidence as we all know how volatile the crypto market is and any news might tilt the market direction.

The stock market does not dictate the crypto market and unlike its distant relative is obviously stable. What might be happening is investors' loss of appetite for risk which might determine how these investors look at a less stable market such as crypto when the supposedly stable, stock market saw a downfall.

[minairia3]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

More like a coincidence. There is no direct relation the crypto market into US stocks perhaps this is just a dejavu. Stocks are more prone to going down while bitcoin is noted as volatile speculative asset which point down to its up and down. Not really shocked with this price drop.

Also if we check the charts you can noticed that the trwns line for bearish has been break so there is no point comparing to stock as the result have been predicted already.

[Lakai01]

You always have to keep in mind that trading, whether in stocks or in the Crytpo market, is highly automated and mostly done by bots (I'm not talking about private trading bots when someone installs Gecko on a Raspberry Pi ).
These bots react to the smallest signals in the respective markets and try to sell shares as fast as possible or to buy them when the trend is positive.

I assume that the bots today are on the move in many markets at the same time and trade the same way. If a bot sells shares because the Dow Jones falls, crypto assets are also sold - and vice versa. So the markets have nothing to do with each other per se, but once they are used by the same buyers and sellers, their actions and reactions are similar/identical.

[BrewMaster]

we can not make that conclusion because we don't have enough evidence to support that.

the only thing that has happened over the past 11 years is that this year after all this time we had a very gigantic drop in stock market and a lot of other markets then bitcoin dropped too.

looking at today's price i don't see any different trend than the past 2 months starting from April. there is ups and downs with an overall rise and right now we are stuck in this price level. we had the rise for the first 10 days of June where price reached $9999 till June 10-11 and then it reversed down and price reached $9000 today. then it will reverse back up and reach $9999 again .... this will go on until a breakout happens and we reach $12k.

now if another market coincidentally dropped while bitcoin was doing its own thing you can't call that "bitcoin following that market"!

[Gozie51]

I see it as just a matter of two things happening same day. The price of bitcoin has been falling after it got to $10,000. Bitcoin dropped last week Wednesday from $9,700 to almost $9100 and then got back up to $9,500 same day if I'm right. So I think I'm not linking it to stock market.

[Etranger]

I see it as just a matter of two things happening same day. The price of bitcoin has been falling after it got to $10,000. Bitcoin dropped last week Wednesday from $9,700 to almost $9100 and then got back up to $9,500 same day if I'm right. So I think I'm not linking it to stock market.

Despite the fact that digital coins are often credited with the status of a protective asset, during a period of panic and mass sales in the market, they fall along with everything. Both markets - crypto and stock - are showing a fall after Trump's announcement of new sanctions against China. In addition, the United States is afraid of the second wave of coronavirus, which also causes panic among investors and affects exchange rate fluctuations. Also the rate of price decline indicates that the initial downward movement was strengthened by cascading liquidation of long positions on cryptocurrency exchanges.

[SquallLeonhart]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

That was exactly the opposite back in the day, when the us stock market went down the bitcoin market went up. The reason why this used to be like that and why it changed is both a good one but also a sad one at the same time. It used to be like that because there was no wall street type of investment people around, most of us were here because of the tech and we love tech but also we hate banks and we hate governments trying to control everyone as well.

It changed because eventually wall street people started to go into bitcoin world and started to buy in billions which is good because price moved up a lot but at the same time sad because now we are working together with the people we hated and started this. In any case now because of them being here they move according to us stock markets and that affects bitcoin as well.

[BitcoinTurk]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

This is actually something related to investor psychology. While all world markets are declining, the decline of crypto money markets will be somewhat abnormal. That is why world markets and the United States stock exchanges in general decline, while the value of Bitcoin and other cryptocurrencies declines. The main reason for this, as you mentioned, is the investor psychology. It is quite normal for Bitcoin and other cryptocurrencies to drop in price as long as cash is appreciated. For this reason, prices decline in all world markets, while crypto markets follow these markets.

[MrMojoRising26]

You would think the institutional investors wouldn't dump their holdings when stocks dump. So that the world would see that bitcoin is not closely correlated with stocks in order for people to believe that, and buy bitcoin as a hedge. Unless they want everyone to believe they are correlated so they can buy back cheaper. There is some sort of manipulation going on there it doesn't make sense

[carlfebz2]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

You shouldnt really correlate Stock and Crypto market yet they do move in different way.There might be instances that they move out on the same manner but doesnt mean that
they are already connected.

If you do this for fundamental analysis then im sure that you would commit mistakes from time to time.As a trader, i didnt recognize this kind of correlation - maybe in some aspect or situation
but im not relying into these infos.

Always stick out on news that hovering on crypto space rather than minding yourself into other markets.

[The Cryptovator]

Stock markets and bitcoin or crypto-currency markets isn't related each other directly. But sometimes we might notice stock markets impacts on bitcoin price. Its probably due to panic, who know if investors are investing on both platforms. I believe bitcoin isn't out of global economic system, so when a part from global economy dumped then it would effect to other but not always.

Bitcoin is not apart of the economic system. The only thing is when it does crash those that invested in bitcoin will lose their investment.

I am not agree with you, I believe bitcoin is a part of global economic system since we are investing on it. Aren't all investors are a part of global economy and backed bitcoin by themselves. Actually we aren't losing bitcoin anyhow, just losing if you consider against USD inacese price dump. If you bought 1 bitcoin it will ever with you, we might say we are buying bitcoin instead of investing on bitcoin since there is no such as ROI platform.

[Blue_oxen]

I see it as just a matter of two things happening same day. The price of bitcoin has been falling after it got to $10,000. Bitcoin dropped last week Wednesday from $9,700 to almost $9100 and then got back up to $9,500 same day if I'm right. So I think I'm not linking it to stock market.

Both markets have their own strengths, and each market has different fluctuations, so it is generally not possible to compare both markets. I think the value of Bitcoin is unpredictable, and even if you are good at analytics, you can only guess 80% correctly. In my opinion, the stock market will often depend on external factors more because if there is news affecting the economy, the stock market will tend to decrease.

It's true! In the cryptocurrency market, it's considered "good" when you can predict 80%. That's such a high percentage of prediction! The stock market and the cryptocurrency market seem not the same as each other. However, they are all affected by the global economy! The cryptocurrency market is also harmed by the pandemic COVID-19 despite the fact that the pandemic gives people a chance to explore the cryptocurrency world!

[cosmofly]

Today, the US stock future goes down near 900 points then the bitcoin prices goes down too.  It happened the same in March 2020 when the US stock market goes down then Bitcoin goes down $4500.  Any one knows the psychology or the mood of the trader?  Thanks.

It was a panicked selling mood. is understandable because this is when the epidemic began to spread so people will not need to hold financial assets anymore. they will sell for a lot of cash so they can buy food. That is why when there is instability in the economy out there, the financial market will fluctuate so strongly. We are also investors and Bitcoin is just a financial asset, it will not escape panic selling.