When the US stock market goes down Bitcoin goes down

[mersal]

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.

Some investors may get triggered to sell their crypto assets whenever they see downfall in the stocks but it is not really meant to happen since crypto assets are way better than stock market investment so getting signals from stocks makes them to lose their money on most of the occasions.

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[Assface16678]

Bitcoin market price is just a pair of BTC/USD or BTC/USDT it is just they are pair so there is a change in the market price of the bitcoin but at the end of the day, there are no real changes in terms of the bitcoin it is just a still a bitcoin when you buy one (1) BTC at the end of the day even the market price of the bitcoin falls down still you have one(1) BTC. Many people are trying to say that the market price of the bitcoin falls down but this is not real.

In my opinion it's just a coincidence, because if we study the movement of the stock market with bitcoin is much different. Maybe that happened
in March 2020 due to the Corona virus Outbreak that caused investors to panic and make all investments go down, not just the stock market
and bitcoin only. Even gold and real estate investment when it came down too. What happened in June is also the same.

Some of the people today are making an investment with the use of bitcoin because this is the new safe haven right now because the economy of the different countries and one of the best ways to make an income is to make an investment with the use of the bitcoin.

[Ridwan Fauzi]

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.

I just thinking that many countries out there which already categorizes bitcoin as a comodity so as they will make the same strategy like they use a strategy in stock market. Yeah I know the event, most of economic instrument were decreasing at that time. There is just one instrument that still consistent even its price is tend to increase namely gold. Many people think that gold is a safe heaven asset it means when many people believe that the stock market, crypto and etc will decrease because there is something bad happen they will their asset into gold and holding until the situation running well.

[LUCKMCFLY]

I have seen many articles where there is a great correlation between the S & P500 and Bitcoin, and of course, when there is a fundamental one like the Covid-19 it affects the markets, even gold suffered a drop, and when the correlation is revised in the short term if it exists, everything changes when analyzed in the long term.

But to take into account, the Bitcoin market recovered much faster than the stock markets worldwide, hence it is concluded that it is not totally correlated, sometimes it can be taken as a mere coincidence that the movements depend on each other, but This is not really the case even though the global economy is one, when taking into account Bitcoin's deflationary economy it departs completely from the traditional one.

[STT]

Trading is about the dollar and leverage thats why it all appears to be related, in extremes even gold because gold can be cashed and used to pay off leverage and margin calls.    So if we shock event, volatility, it usually relates to contraction and pullbacks, margin being paid.  I dont think BTC is related to SP500 especially outside of that dynamic but every part of the economy will appear to contract or expand.
   A good clue to this question would be to examine the volatility index and relate to prices of various assets also gold itself is considered a hedge against volatility as prices become less reliable day to day gold is more useful as a known quantifiable value over hundreds of years.
https://finance.yahoo.com/quote/VXX?p=VXX&.tsrc=fin-srch

[bearexin]

I have seen many articles where there is a great correlation between the S & P500 and Bitcoin, and of course, when there is a fundamental one like the Covid-19 it affects the markets, even gold suffered a drop, and when the correlation is revised in the short term if it exists, everything changes when analyzed in the long term.

It is obvious when an investor invest on both bitcoins and S&P500 then he may react to fundamentals in same way and may take similar decisions when something like covid19 outbreak happens or will invest more when he gets some bonus from this regular job. I guess correlation of bitcoin markets with US stock markets simply depicts us about the influence of both the markets by same set of investors and traders. I guess in near future, we might be having more correlated movements in bitcoin markets against US stocks as bitcoin markets already started attracting more traders and investors from there.

I dont think BTC is related to SP500 especially outside of that dynamic but every part of the economy will appear to contract or expand.

I guess bitcoin market is getting expanded due to its proven potential over the decade of time . When more people from wall street start admiring about the basic economic characters of bitcoins then we will have more stock based people into bitcoin ecosystem which will definitely lead to make market to react in same directions for any impacting news.

[Yamifoud]

The US stock market isn't that big influence on the crypto market but of course, it somehow will affect the movement as well. We can see that it is a coincidence, not really for sure because what happens to the local stock market also drag the prices when it down. Things to see that the global market situation will be a huge factor that could affect the crypto market and many times it happens just like the crisis we have now.

We can bring Bitcoin prices to the high level if the economic situation will stay like this.
https://cointelegraph.com/news/3-reasons-why-bitcoin-price-could-crash-if-us-stock-market-collapses

I hope this could not create another drama but much better to be aware and prepared if ever this will happen.

[exstasie]

https://cointelegraph.com/news/3-reasons-why-bitcoin-price-could-crash-if-us-stock-market-collapses

This was much better than the trash Cointelegraph usually produces. Looks like there are still plenty of skeptics regarding the April-July bull run:

Assia said that even though central banks are printing more money, “we will [see] a correction since this rally seems to be fueled by speculation of retail investors. Historically these rallies end with a correction.” Speaking to Cointelegraph, Mati Greenspan, a co-founder of Quantum Economics, said:

“I agree with his [Assia’s] assessment about the stock rally being retail driven and therefore is likely to come to a sour end. I’ve been short on the stock market as of Monday. The funny thing is that the correlation between the stocks and Bitcoin has only strengthened recently and that seems to indicate that Bitcoin is being driven by institutions.”

Wall Street barons and billionaires including Mark Cuban, Paul Tudor Jones and Warren Buffett have emphasized that, in the short term, they prefer to strengthen their hedge positions and cash reserves rather than entering the stock market. On May 14, Cuban said on CNBC’s Closing Bell: “I think it’s almost impossible to predict where consumer and corporate demand is going to come from. And because of that, it’s hard to create a valuation for businesses.”

The research firm also emphasized that “uncertainty is back across all markets,” with the Fear and Greed index dropping back to the fear zone following the stock market pullback on June 11. All assets and stores of value including stocks, gold and cryptocurrencies dropped, possibly triggered by a sell-off of institutional investors taking advantage of record-high demand coming from retail platforms such as Robinhood and Charles Schwab.

It's true that retail investors have played a significant role in the recent bull run. That's worrisome. The combination of so many retail bulls and horrible underlying economic fundamentals is straight up scary. I'm worried institutions are now selling into retail demand and positioning themselves to squeeze longs.

Should be an interesting couple months, that's for sure......