If market crashes, BTC will crash twice as hard.

[RealMalatesta]

I believe that market will be fine for a while, I do not care if Trump wins or Biden wins, eventually market will readjust and I know that pandemic happened and it killed many economies in the world but right now I do not think that will continue forever, it will probably recover adn that means "next crash" for market will not be soon, it will take years probably over a decade to happen.

This is why I believe right now is perfect time to invest into both bitcoin (or crypto in general) and also investing into stock market as well, for the next 10 years you are going to make a profit from both of them. I believe by the time 2030 comes bitcoin will be over 50k easily (probably closer to 100k) and also we are going to see stock markets be 5x of what they are right now as well.

[MFahad]

I believe that market will be fine for a while, I do not care if Trump wins or Biden wins, eventually market will readjust and I know that pandemic happened and it killed many economies in the world but right now I do not think that will continue forever, it will probably recover adn that means "next crash" for market will not be soon, it will take years probably over a decade to happen.

This is why I believe right now is perfect time to invest into both bitcoin (or crypto in general) and also investing into stock market as well, for the next 10 years you are going to make a profit from both of them. I believe by the time 2030 comes bitcoin will be over 50k easily (probably closer to 100k) and also we are going to see stock markets be 5x of what they are right now as well.

You're right that all the important events and even pandemic effects will not last forever and eventually market will recover. The financial market includes the fiat, stocks, gold and bitcoin and all of them will recover soon. I must say that now is the time for the  bounce back and recovery of the market.

[hahay]

I believe that market will be fine for a while, I do not care if Trump wins or Biden wins, eventually market will readjust and I know that pandemic happened and it killed many economies in the world but right now I do not think that will continue forever, it will probably recover adn that means "next crash" for market will not be soon, it will take years probably over a decade to happen.

This is why I believe right now is perfect time to invest into both bitcoin (or crypto in general) and also investing into stock market as well, for the next 10 years you are going to make a profit from both of them. I believe by the time 2030 comes bitcoin will be over 50k easily (probably closer to 100k) and also we are going to see stock markets be 5x of what they are right now as well.

You're right that all the important events and even pandemic effects will not last forever and eventually market will recover. The financial market includes the fiat, stocks, gold and bitcoin and all of them will recover soon. I must say that now is the time for the  bounce back and recovery of the market.

Basically everything is only temporary, even though the market falls many times but still, the collapse of the crypto market will not make bitcoin lose its value because the price in the cryptocurrency market will continue to increase and decrease every time. Any issues and problems that occur in this world, at least directly or not will affect the price in any market that exists so that way, bitcoin will still recover even if it gets repeated drops and this will be fine. Nothing to worry about either.

[Yamifoud]

If that so, then let SPY dried off and see what it happens to BTC price. Could be that important and sees if that is correlated to it because almost no one we'd like to believe it. Reason why? Bitcoin has free market flows, in fact, the stock market drops hard, the global economic decreases but we are about to make a good position away from it and making a good market rally. That is why I'd never thought that is likely to happen, it is negative as per see.

[exstasie]

When Bitcoin crashes, what do you expect to happen to a low cap shitcoin? It will consistently crash harder than BTC. The same exact principle applies here.

Everything else equal, BTC will always crash harder than stock indices or gold, which are much more liquid markets, and which have much thicker bid sides.

It's not about fundamentals. It's not about "Bitcoin was made for this situation" or any nonsense like that. It's all about liquidity. In a liquidity crisis and flight to cash, which markets have the liquidity to absorb a big dump? That is what matters.

I understand the logic of your reasoning. But why do you think that the liquidity of an asset so strongly affects the degree of its depreciation during a crisis?

Because lack of liquidity means there are no bids to dump into. So in a flight to cash scenario like March where everyone is rushing to liquidate assets for cash, the price of illiquid assets crash that much harder.

A unique diamond/painting or something like that has little liquidity (they are difficult to sell) even when the economy is growing, but this does not mean that during a crisis they lose their value.

Sure it does. An economic crisis may not change the price you paid or the value you put on a diamond or a painting, but it will make them harder to sell. So if you really want to sell during a crisis, you'll probably have to sell cheaper than you otherwise would have.

[pooya87]

Sure it does. An economic crisis may not change the price you paid or the value you put on a diamond or a painting, but it will make them harder to sell. So if you really want to sell during a crisis, you'll probably have to sell cheaper than you otherwise would have.

they are not comparable. unlike a diamond or a painting, bitcoin has a quite liquid market that is going to always be active and have a volume. even during a crisis ignoring what happens to the price, the volume will be there even if it drops. so even if someone wants to sell/buy bitcoin they still have liquid enough market to sell/buy in.
the only problem one might face is if they were trying to buy or sell very large amounts of bitcoin, and that's only assuming the volume drops. otherwise 99% of the other cases won't be affected.

[exstasie]

Sure it does. An economic crisis may not change the price you paid or the value you put on a diamond or a painting, but it will make them harder to sell. So if you really want to sell during a crisis, you'll probably have to sell cheaper than you otherwise would have.

they are not comparable. unlike a diamond or a painting, bitcoin has a quite liquid market that is going to always be active and have a volume. even during a crisis ignoring what happens to the price, the volume will be there even if it drops. so even if someone wants to sell/buy bitcoin they still have liquid enough market to sell/buy in.

To a degree. Liquidity exists on a spectrum. If somebody wants to buy or sell large cap stocks, or derivatives linked to stock indices, they have much more available liquidity to do so than with BTC. I believe that's one of the reasons BTC dumped harder than stocks back in March.

I wasn't saying Bitcoin and fine art have equal liquidity. I wasn't making that comparison at all. I was responding to someone who said an economic crisis shouldn't affect the value of diamonds or paintings.

[ultrloa]

I believe that market will be fine for a while, I do not care if Trump wins or Biden wins, eventually market will readjust and I know that pandemic happened and it killed many economies in the world but right now I do not think that will continue forever, it will probably recover adn that means "next crash" for market will not be soon, it will take years probably over a decade to happen.

This is why I believe right now is perfect time to invest into both bitcoin (or crypto in general) and also investing into stock market as well, for the next 10 years you are going to make a profit from both of them. I believe by the time 2030 comes bitcoin will be over 50k easily (probably closer to 100k) and also we are going to see stock markets be 5x of what they are right now as well.

You're right that all the important events and even pandemic effects will not last forever and eventually market will recover. The financial market includes the fiat, stocks, gold and bitcoin and all of them will recover soon. I must say that now is the time for the  bounce back and recovery of the market.

Basically everything is only temporary, even though the market falls many times but still, the collapse of the crypto market will not make bitcoin lose its value because the price in the cryptocurrency market will continue to increase and decrease every time. Any issues and problems that occur in this world, at least directly or not will affect the price in any market that exists so that way, bitcoin will still recover even if it gets repeated drops and this will be fine. Nothing to worry about either.

People think that every fall is the end of bitcoin but actually this incident will not exist for now since as of these days bitcoin gather much attention interms of investment and usage, and those issues about price dump has just been ignored by majority since its already tested that whenever a dump cames there's a huge pump will follow and the only losers here are the people who always afraid to take their step to buy when opportunity is there.

[carlisle1]

I believe that market will be fine for a while, I do not care if Trump wins or Biden wins, eventually market will readjust and I know that pandemic happened and it killed many economies in the world but right now I do not think that will continue forever, it will probably recover adn that means "next crash" for market will not be soon, it will take years probably over a decade to happen.

neutral reaction for now will keep us safe because we will not react in shit news about this or that and sometimes being in silent is better than in the open.
stop speculating more and trust our coins that is best action now.

This is why I believe right now is perfect time to invest into both bitcoin (or crypto in general) and also investing into stock market as well, for the next 10 years you are going to make a profit from both of them. I believe by the time 2030 comes bitcoin will be over 50k easily (probably closer to 100k) and also we are going to see stock markets be 5x of what they are right now as well.

10 years from now?i think Bitcoin will be 6 digits,because we come 5 digits in 10 years so what more in the next same range?
anyway we are only speculating but with confidence because we trust bitcoin and this is waht we have to now,with this market up and down.

[Arkann]

People think that every fall is the end of bitcoin but actually this incident will not exist for now since as of these days bitcoin gather much attention interms of investment and usage, and those issues about price dump has just been ignored by majority since its already tested that whenever a dump cames there's a huge pump will follow and the only losers here are the people who always afraid to take their step to buy when opportunity is there.

I believe that everything has its own explanation and therefore nothing to worry about your cryptocurrency capital. To date, a significant decrease in the price of cryptocurrency has occurred, possibly due to the fact that on Friday, the 25th, the Bitcoin options expire. Every last Friday of the month, you can see a slight decrease in prices due to these processes. But if people are storing Bitcoin for the long term, then these minor price fluctuations should not worry them.

[bitgolden]

Liquidity in diamond is higher as well, the difference between them is the fact that bitcoin is something everyone can buy and sell at one place whereas diamond is a thing you can buy around you, you are not going to buy a diamond ring from someone in another continent far away from you, but you can do that with crypto easily.

So, liquidity is a lot more in crypto compared to everything else you listed not because the total numbers are bigger, total numbers are lower in btc, but you can do all the other things in places you know and can go to whereas in bitcoin you can do it all around the world, that is the big huge difference between them. Obviously it is not going to be so easy for everyone to trade bitcoin neither, but it is just easier compared to stocks or derivatives or diamonds and what not.

[Ryu XBR Samurai]

I think it is very tempting to understand Bitcoin or other cryptocurrencies in terms of the Beta statistic.  Beta the measure of relationship of a security based off past valuations can be valuable in setting up a portfolio.  Bitcoin based off of Gold with deflationary attributes would lead an investor to think it has a negative Beta.  Gold has traditionally has a negative Beta.  There is a definite desire in the Crypto space for Bitcoin to have a negative Beta as well.   Generally, securities with negative Beta are more desired and have higher valuations than similar securities with positive Beta.   That said when you look at the valuations of Bitcoin, the Market and Gold it is extremely difficult to understand the relationship.

Part of the reasoning for that is the extreme growth of Bitcoin between 2014 and 2017.  A growth security can certainly be affected by the market but something growing at the level of Bitcoin it is obvious there are other and much larger factors at play.

Here is a picture from Bittmex that illustrates the lack of a relationship during this period.
https://www.bing.com/images/search?view=detailV2&ccid=6PVd%2fzC7&id=E69A2666F6AC7D1F1926473734A82A58CAC160BF&thid=OIP.6PVd_zC7K7X6Z6WDsoLmcAHaEd&mediaurl=https%3a%2f%2fblog.bitmex.com%2fwp-content%2fuploads%2f2018%2f03%2frolling.png&exph=543&expw=902&q=beta+bitcoin+to+S%26P+500&simid=608031240335721443&ck=1493AE62779D20C45B7620A888675674&selectedIndex=12&FORM=IRPRST&ajaxhist=0

Cryptocurrencies can pick the attributes of a Technology growth stock, Gold, a high risk company and others.
These attributes can change quickly.   Thus if Bitcoin has acts as a high Beta stock for the past year, it could easily be treated more like Gold tomorrow and visversa. 

The ultimate problem with Beta and with many portfolio statistics is that they use prices of assets on a historical basis to derive what is supposed to be the future relationship.  Bitcoin and other cryptocurrencies are simply too new in my opinion for a meaningful relationship to be established.

What I mean to say by this, is that it is difficult to predict what will happen to Bitcoin prices in the event of a drop in the market and everyone should be skeptical of novice trading in advice in this area claiming a more proven relationship.

[STT]

BTC did follow stocks and main markets today but also in any case I had guessed it might be go down to complete its pattern in something along these lines , I think it fits a test of the upper pattern after previously falling below the 50 day average it was about a stall speed to pull back or thats how I was viewing it.



Now we have the lower test again and as seen its previously held the line here and risen after that big red bar downwards.   So we are repeating action previously done and then the speculation is do we simply repeat or with some extra push downwards or hold the line round about here.   I dont think its purely external that effects us, theres a point it tips further and thats the place to bet on momentum and larger bars occurring as support breaks.

[Hippocrypto]

I believe that market will be fine for a while, I do not care if Trump wins or Biden wins, eventually market will readjust and I know that pandemic happened and it killed many economies in the world but right now I do not think that will continue forever, it will probably recover adn that means "next crash" for market will not be soon, it will take years probably over a decade to happen.

neutral reaction for now will keep us safe because we will not react in shit news about this or that and sometimes being in silent is better than in the open.
stop speculating more and trust our coins that is best action now.

This is why I believe right now is perfect time to invest into both bitcoin (or crypto in general) and also investing into stock market as well, for the next 10 years you are going to make a profit from both of them. I believe by the time 2030 comes bitcoin will be over 50k easily (probably closer to 100k) and also we are going to see stock markets be 5x of what they are right now as well.

10 years from now?i think Bitcoin will be 6 digits,because we come 5 digits in 10 years so what more in the next same range?
anyway we are only speculating but with confidence because we trust bitcoin and this is waht we have to now,with this market up and down.

For that trust I believed there's a good future for bitcoin, as well the other cryptocurrency that has a consistent market volume. Don't get intimidated if bitcoin crashes badly, eventually it will recover nicely in perfect timing. Meanwhile, lets just be calm and easy because we need to focus on our daily living without being stressed. Fluctuations is always a part of bitcoin's milestone and even though it crashed frequently, it will bounce back successfully by the time demand increases.

[LogitechMouse]

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. 

If we will just see the prices of both the stock market (S&P) and Bitcoin, they really have a correlation between its price movement.
Although I agree that when stock market crashes Bitcoin will crash twice as hard, I also believe that when the recovery time comes Bitcoin will recover twice as much.

We saw it already last March when the pandemic has been announced by WHO. All of the markets are down, Stock markets and crypto market are down but if you will see how much they recover since at that time Bitcoin recovered near thrice as its previous price last March so yes Bitcoin will crash twice as hard when the stock market is down maybe but it will recover twice too.

[ethereumhunter]

Although the bitcoin price is still below $11k, the price now seems strong, and the green candle can show in the market. Maybe we will see a change this week, and hopefully, the price will have a chance to increase and break $11k. There is still a bitcoin price to start another rally this week, especially bitcoin price has been stable at the $10k level. I am sure that sooner or later, the price will have the time to start the rally, and before the price increase, we can buy more bitcoin to be ready for the next high price.

[barbara44]

Unfortunately there is no connection that we could make with proof, obviously there are logical connections between them that you could make but on paper there is zero connections that we could show as a proof to people. Which means it could go up, go down, go up twice harder, go down twice harder and anything in between but the reality is we could not know this beforehand, we could assume it, we could make a common sense approach to it but in reality we are not going to make any change at all by just assuming what will happen.

This is why we should not move depending on the stock market, let them be whatever they want to be and let us work on ourselves, if we could ignore the stock market as a whole we could actually move up when it goes down or up without caring what it is doing.

[KTChampions]

A unique diamond/painting or something like that has little liquidity (they are difficult to sell) even when the economy is growing, but this does not mean that during a crisis they lose their value.

Sure it does. An economic crisis may not change the price you paid or the value you put on a diamond or a painting, but it will make them harder to sell. So if you really want to sell during a crisis, you'll probably have to sell cheaper than you otherwise would have.

I agree with you in general, but why am I forced to sell? If we are talking about investors, then it is unlikely that they bought bitcoin on credit. And they all know about economic cycles and the fact that after fiat money becomes strong, there will inevitably be a period when it becomes weak and asset prices soar. The only ones who will sell at any price are miners, but their influence (if we take the total capitalization of bitcoin) is not very large and is gradually decreasing.

[YuginKadoya]

Halt! the crash and may crash twice! because as of today Bitcoin is sprunt back up in an incredible feat the last price I saw if I am not mistaken it is on $10,400 USD now it get back up to an amazing $10,600 USD and I am thinking that it may lead to another hike up well Bitcoin in the recent pull up doesn't really get to the maximum peak it should reach so maybe this is the right time to hit that well in my opinion.

[exstasie]

Sure it does. An economic crisis may not change the price you paid or the value you put on a diamond or a painting, but it will make them harder to sell. So if you really want to sell during a crisis, you'll probably have to sell cheaper than you otherwise would have.

I agree with you in general, but why am I forced to sell? If we are talking about investors, then it is unlikely that they bought bitcoin on credit. And they all know about economic cycles and the fact that after fiat money becomes strong, there will inevitably be a period when it becomes weak and asset prices soar. The only ones who will sell at any price are miners, but their influence (if we take the total capitalization of bitcoin) is not very large and is gradually decreasing.

If that were true, asset prices would never drop.

Like you said, the market moves in cycles. At the end of a bullish cycle, this is what happens: profit taking (distribution) and selling because of anticipated lower prices. During trends, prices move in feedback cycles. Lower prices beget lower prices, as the pain of holding losing positions compounds and burnt investors capitulate. This is why downtrends often end with high volume capitulation events. https://www.investopedia.com/terms/c/capitulation.asp

Even if you don't feel forced to sell, others will because of the pain of holding or the need to liquidate for cash (this is an economic crisis we're discussing after all), or because they think they can buy back lower. This all produces increased supply on the market, which pushes prices down.