If market crashes, BTC will crash twice as hard.

[shoeshineBro]

I see there is a strong correlation between SPY and Bitcoin prices.  BTC has a higher beta, however.  Whenever SPY tanks, BTC tanks twiiiiiice as hard, (as it was the first time, I said good byeeee) 
In March, BTC dropped from $10k to $5k.      I am calling for another BitCoin wipeout when the market crashes. 

[1715118716]

1715118716

[Baofeng]

For the record, bitcoin drop to as low as $3k in March, wiping out more than 50%, so yes it is technically a crash. But it has recovered nicely, even getting as high as $12400, however the price is not sustainable. And recently we have around 15% crash going into $10k. But remember this crashes, like in March was due to the Covid-19 pandemic, and we could say the oil wars.

However, as I have mentioned, even if bitcoin crashes, if had recovered to more than x3, so it crash twice as hard, but rebounded while traditional markets is still on the recovery and majority of them are underperforming.

[Oilacris]

For the record, bitcoin drop to as low as $3k in March, wiping out more than 50%, so yes it is technically a crash. But it has recovered nicely, even getting as high as $12400, however the price is not sustainable. And recently we have around 15% crash going into $10k. But remember this crashes, like in March was due to the Covid-19 pandemic, and we could say the oil wars.

However, as I have mentioned, even if bitcoin crashes, if had recovered to more than x3, so it crash twice as hard, but rebounded while traditional markets is still on the recovery and majority of them are underperforming.

Havent you tired on hearing out these kind of views or sentiments? Like Bitcoin is dead, Bitcoin wont recover from crash, Bitcoin wont reach its ATH and more.

Im not really fan on tagging other events when it comes to price movements but somehow they might or might not have some correlation totally yet this market is always been an unpredictable thing.

I dont know on where OP do get about that crash twice as hard and if we do look back then he would realized on how many times did Bitcoin crashed its price and then eventually make a comeback or recovery. 

[STT]

Theres a base line to BTC price progression and theres speculation that adds spikes up and down.     The easiest way to stort the stable from the more erratic speculation and hype is by time frames.   1hr or 4hr bars are trading movements, the daily and weekly bars are more reliable and steady.    I'm looking for us to pullback so long as we keep closing weekly bars below 10,500 which has been something of a ceiling.   It cant be called weak but for now we are in a process of consolidation over prior gains which is a normal kind of cycle.   BTC definetly has a higher beta as do tons of companies, commodities and lots of assets.    Crypto is still new so its fair to expect volatility and growth continues and is required.

[jackg]

For the record, bitcoin drop to as low as $3k in March, wiping out more than 50%, so yes it is technically a crash. But it has recovered nicely, even getting as high as $12400, however the price is not sustainable. And recently we have around 15% crash going into $10k. But remember this crashes, like in March was due to the Covid-19 pandemic, and we could say the oil wars.

However, as I have mentioned, even if bitcoin crashes, if had recovered to more than x3, so it crash twice as hard, but rebounded while traditional markets is still on the recovery and majority of them are underperforming.

The S&P and the dax both recovered pretty fast though?

They were back to aths afaik when bitcoin reached 12k. And both have taken a recent hit.


The stock market should take a slow bleed imo after a crash and bitcoin should take a slow recovery if it crashes - that's what I'm expecting anyway.

[GreatArkansas]

I see there is a strong correlation between SPY and Bitcoin prices.  BTC has a higher beta, however.  Whenever SPY tanks, BTC tanks twiiiiiice as hard, (as it was the first time, I said good byeeee) 
In March, BTC dropped from $10k to $5k.      I am calling for another BitCoin wipeout when the market crashes. 

At first, I am also thinking this, that there are correlation with some stocks like SPY with Bitcoin.
When coronavirus started to spread all over the world last March, yes a huge dump in stock market and Bitcoin too.
But what is the different with Bitcoin last time was, the bounce back of Bitcoin is fast compare to some stocks.

[CryptopreneurBrainboss]

I see there is a strong correlation between SPY and Bitcoin prices.  BTC has a higher beta, however.  Whenever SPY tanks, BTC tanks twiiiiiice as hard, (as it was the first time, I said good byeeee) 
In March, BTC dropped from $10k to $5k.      I am calling for another BitCoin wipeout when the market crashes. 

Not trying to be the odd guy here or acting unreasonable but I think I'll be vouching for another bitcoin correction not minding how dip it goes. I was taken unprepared with the previous that occurred days back, wiping my portfolio approximately -50% since I had early increase my altcoins holdings with hopes to trade them within the weeks in acquiring more bitcoin. I got screwed big time. In regards to your observation, the corrections we think we're observing is just as a result of the impact of the pandemic in the global economy and nothing more.

Every market whether, assets, stock or currency got hit in March and not just that you of the cryptocurrencies market so that won't be an accurate comparison. That same fate repeat itself doesn't justified that too until everything returns back to normal.

[batang_bitcoin]

I am calling for another BitCoin wipeout when the market crashes. 

Wipeout? do you think that it's going to liquidate and just get off of the market with $190B total market cap? Although the connection and correlation is puzzling me as well but most of the times, they're not correlated.
Saying that there will be a wipe out, it is out of context and term isn't the right one. There will be a correction yes, it could be a hard and quick dump but I'm not looking forward to it.

[jseverson]

The correlation between the two is about to approach an all-time high, so it wouldn't surprise me if Bitcoin followed suit after a crash. I'm not sure about it being hit twice as hard though, considering it recovered way faster when COVID first hit.

Either way, I don't think it's going to be a cause of concern since there aren't really any solid indicators that it'll stay down when it falls. All it's going to be is another fire sale, really.

[maydna]

You can read the other news about what will happen with bitcoin, but you don't have to believe it before you research yourself because that news is not always right, or it's just coincidence happening to bitcoin. But if somehow, after you explore, you found out that it has a connection between what is happening with bitcoin and that news, you can know what you need to do.

I believe that if bitcoin price crashes, and perhaps it is almost the same as what the stock market or other market happens, bitcoin price will bounce up, and the price will increase more than the last high price. We already saw bitcoin price reached $3k a few months ago, but the price can touch $12k as the new ATH this year. And although bitcoin price now back to $10k, the price will be increased again, and the chance for bitcoin price to touch the new ATH will wide open.

[pooya87]

that is why you and some small percentage of the traders panic sold their bitcoin recently. this small group saw the stock market crash and were filled with dread so they sold their bitcoins. but you still belong to a very small group of people who think this way because as we can clearly see the stock market has been crashing all this time and has not stopped and meanwhile bitcoin drop was a very short amount in a very short time frame which was about 12 hours of September 2 (that is about 9 days ago).

so no, not only there isn't any correlation between bitcoin and any other market but also there is nothing bearish about bitcoin market.

[okala]

Bitcoin crashing twice is always an opportunity to buy low and I see the two face of the market state as an opportunity and not a condition. Many traders are losing money because of the over holding and I think it is better we take what ever gain we have made from this latest bull run.

[Yaunfitda]

I'm also don't see any correlation, but hey the price has rebounded since the pandemic and the rest of other market as well. And bitcoin market has lots of fluctuations recently but we keep our noses above that line of support of five digits so we won't crash as the OP has predicted. All indication says that regardless of direct or indirect correlation with S&P, bitcoin will have it's own movement.

[Febo]

I see there is a strong correlation between SPY and Bitcoin prices.  BTC has a higher beta, however.  Whenever SPY tanks, BTC tanks twiiiiiice as hard, (as it was the first time, I said good byeeee) 
In March, BTC dropped from $10k to $5k.      I am calling for another BitCoin wipeout when the market crashes. 

But it will also recover 3 times as fast. That is what markets do. they crash they recover. They have bear or bull trends. If you hold and not trade you end up with exactly the same number of coins no matter what happens.

[el kaka22]

I see there is a strong correlation between SPY and Bitcoin prices.  BTC has a higher beta, however.  Whenever SPY tanks, BTC tanks twiiiiiice as hard, (as it was the first time, I said good byeeee) 
In March, BTC dropped from $10k to $5k.      I am calling for another BitCoin wipeout when the market crashes. 

It is such a funny topic that we would never know until it happens, sometimes they do the same thing and sometimes they do the opposite of each other but people here will never stop saying that one thing is guaranteed, nothing is guaranteed in the crypto world, you will never know what it will do, sometimes you will be right and sometimes you will be wrong.

I have seen plenty of topics saying that "when market crashes bitcoin will go up" as well, I have seen them around here, check few pages and you will find that topic too. Do not really hold your breath about what stock market will do or what crypto will respond to it, that is not something we can actually assume and could never really know what will happen. Just focus on crypto and your own investments and you will be better off.

[exstasie]

The S&P and the dax both recovered pretty fast though?

Sure, but that March crash (~63% for BTC, ~36% for the S&P 500) hurt quite a bit, and lots of people were fooled into selling or shorting it, only to be trapped. A classic shakeout.

They were back to aths afaik when bitcoin reached 12k. And both have taken a recent hit.

That only reinforces the OP's point I guess. BTC just dumped 21% while the S&P 500 dumped 8%. If the bottom falls out from stocks, and I think failing below the 50DMA and lower daily BB would do it, things are going to get very ugly for BTC......and fast.

[2double0]

Sure, but that March crash (~63% for BTC, ~36% for the S&P 500) hurt quite a bit, and lots of people were fooled into selling or shorting it, only to be trapped. A classic shakeout.

Wasn't it all due to Coronavirus and its effects? Wasn't there a reason for the dump? How can people be 'fooled' then? It was all intentionally done by investors to remove their fiat out of stocks as they knew that these markets were going to get a hard hit and they also played a part in this by equally dumping their stocks and shares for money as they knew they will need hard cash instead of these stocks to survive the situation after the pandemic.

That only reinforces the OP's point I guess. BTC just dumped 21% while the S&P 500 dumped 8%. If the bottom falls out from stocks, and I think failing below the 50DMA and lower daily BB would do it, things are going to get very ugly for BTC......and fast.

Almost same is the case with BTC and if it falls below a key level of $10k and reaches down to its old support near $9350, we will head towards $7k-$7.5k and we may also see a long dip.

[exstasie]

Sure, but that March crash (~63% for BTC, ~36% for the S&P 500) hurt quite a bit, and lots of people were fooled into selling or shorting it, only to be trapped. A classic shakeout.

Wasn't it all due to Coronavirus and its effects? Wasn't there a reason for the dump? How can people be 'fooled' then?

Well sure, I only meant the crash induced people to sell. Then they got bear trapped.

However, now that you mention it, the way it all went down was pretty messed up. Retail investors had the wool pulled over their eyes. They were told of the Great Depression unemployment levels and incoming waves of bankruptcies and 2008-like financial collapses that were coming.

Then the Fed swooped in and bailed out the entire corporate bond market and promised Wall Street they had an "infinite" amount of cash to print. So banks and other large institutions bought into the panic (can't blame them because if they hadn't, the Fed literally would have started buying stocks themselves) and all the "rational" investors who sold became trapped.

In a free market, the stock market would have totally collapsed like 1929. And if that happened, all the rational sellers wouldn't have been trapped. But this isn't a free market, and no one ever knows when the Fed is going to act or how many trillions of dollars they are going to pump into the market when they do.

[adaseb]

Yes they are correlated and if SPX starts to crash like it did before back in March then it will also bring down cryptos. However the crash won't be as before, the reason why it was a hard crash down to $3K was due to lack of liquidity.

I was trading that day and it was scary to watch but basically there was no bids on Bitmex and there was maybe 1 billion worth of long liquidators. And the market kept going lower and lower and lower. And if it wasn't for Bitmex going down that moment we might of hit $0 eventually especially on the leveraged and futures exchanges.

So while it's possible we might crash it won't be as bad as it was back in March. We know what covid is and we learned to live with it by wearing masks. Back then there was tons of uncertainty.

[2double0]

<<>>

In a free market, the stock market would have totally collapsed like 1929. And if that happened, all the rational sellers wouldn't have been trapped. But this isn't a free market, and no one ever knows when the Fed is going to act or how many trillions of dollars they are going to pump into the market when they do.

I get that it's all Fed and the Trump Gov who played a major role in the plunge of their markets and still, injected more money for a buyback lookalike strategy and banged all those rational investors you told me about. But BTC market is very small yet, compared to these gigantic marketcap holding stocks. Why does it follow their crash when BTC is all that looks like being favored by investors but still gets dumped when S&P crashes? Or was it this time when the pandemic took place?