Why Does the World Economy Affect the Crypto Market?

[osasshem]

It is true that the crypto market is being affected by the world's economy in either positive or negative ways. But how did this come into existence? As at 5 - 6 years back, Bitcoin and crypto currencies has been seen with negative eye sights, several countries placing ban on its use, and Bitcoin not having much/any effect from the world news/economic situation. But ever since the introduction of taking Bitcoin and some altcoins into reserve, the effect of the world economy started affecting the price of Bitcoin and the crypto market at large, though, the market easily recovers from this downsides.

The effect of whales where ones in control of price manipulation, then we started seeing the entrance of big investors and wealthy business persons, and now countries and government leaders coming into this space. To my observations, the involvement of the governmental bodies has lead to the effect of economic crisis affecting the price of Bitcoin/crypto assets. Is this suppose to be? As Bitcoin is not managed, controlled or in charge by anybody?

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

_{I stand to be corrected in any area where I am wrong.}

[stadus]

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

It should be seen as a positive thing, because that’s really where we’re heading.

as Bitcoin becomes more popular, the governments have no choice but to regulate it mainly to prevent illegal activities like money laundering... and we know, regulation exists for a reason, and because of it, investors feel more confident putting their money into Bitcoin, which helps drive adoption as the market grows stronger.

I believe Bitcoin is a great hedge against inflation. So whatever the state of the economy is, even if it's negative, Bitcoin can still benefit from it. Maybe not instantly, but over time, we’ll definitely see the impact.

[john_egbert]

Overall fear on the market eventually comes back at the crypto market too: and we see it ourselves, to a degree. Bitcoin is affected by many things, and it is one of them.

It's not good or bad, it's logical: and government doesn't control where it goes, but rather, only affects the short-term and mid-term effects, maybe, because it's not their goal when it happens: it's an aftermath.

[Luzin]

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

_{I stand to be corrected in any area where I am wrong.}

I think there are many different policies, some good and some bad, but they are temporary. We see some of the policies of countries that have major world economic powers have happened. When the news is good, Bitcoin will increase, when the news is bad, there will be a correction. But remember all the news that happens BTC can always find the best price again. I can't count the number but because of good and bad news we can take advantage of it to find profits. So we should understand that, we can only follow the big flow not fight it.

[ruykeri]

In my opinion, the price of Bitcoin has started to rise since many of the world's richest businessmen and heads of government in many countries started talking about Bitcoin. People like Elon Musk and Donald Trump are great examples of this.A few days ago, Thailand announced that they will accept Bitcoin for transactions.
For all these reasons, the price of Bitcoin is increasing day by day.Now many are saying that,
If these government leaders or those who helped influence Bitcoin in the past,
If they start spreading negativity about Bitcoin or back down from their current position

So will the price of Bitcoin drop again?
My answer is Yes, it might decrease a little,
or some negativity might arise among many.
But it won't take long to overcome that.
The value of Bitcoin will depend on the acceptance of people.
As people have now started to trust Bitcoin
and are taking advantage of this Bitcoin,
the popularity of Bitcoin cannot be stopped.
Now, nothing about Bitcoin can be controlled by the heads of government of one or two countries or by a popular public figure.

In the future, Bitcoin will remain the most powerful and trusted asset for people.

[348Judah]

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

_{I stand to be corrected in any area where I am wrong.}

The market only reacts in some cases partially or on a short term, when there is a breaking news from the economy.

Lets go back to the drawing board and look into the way we could track and predict on a market and how the market price analysis is being done, you can agree with me that there are three major ways in which we can track for the performance of a coin in both the past, present and future, this talks about using:

Fundamental Analysis
Technical Analysis
On-Chain Analysis

If you look more closely, you will discover about fundamental analysis to comprise of all the economic activities and development in the financial sectors around the world, this could also be interpreted form the incidence of breaking new in the economic and financial system, politics news and so on.

[retreat]

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

Whatever it is, there must be a positive and negative side.. on the positive side we can see that with the involvement of the government it is quite positive for the adoption of Bitcoin since the regulation can provide clear rules and security to investors who want to put their money in Bitcoin. However, with the increasing involvement of the government in Bitcoin, it could make Bitcoin more centralized, for example with KYC/AML rules and also taxes that could burden investors. So this is like a double-edged sword, on the one hand it can have a positive impact, but on the other hand it can have a negative impact.

[Rgram]

It is true that the crypto market is being affected by the world's economy in either positive or negative ways. But how did this come into existence? As at 5 - 6 years back, Bitcoin and crypto currencies has been seen with negative eye sights, several countries placing ban on its use, and Bitcoin not having much/any effect from the world news/economic situation. But ever since the introduction of taking Bitcoin and some altcoins into reserve, the effect of the world economy started affecting the price of Bitcoin and the crypto market at large, though, the market easily recovers from this downsides.

The simplest way I would have liked to answer this is:

We live in the same world and Bitcoin isn’t alienated to the world. It’s normal that things happening in our world should reflect on the market. When the economy is down, you wouldn’t find investors channeling their usual investment amount into the market, some would even withdraw from what they’ve got and others might actively try to take chances of the opportunities created during these times. All that is what you would see in the market.

[AVE5]

It is true that the crypto market is being affected by the world's economy in either positive or negative ways. But how did this come into existence?

Aside bitcoin or the decentralized markets entirely, the world including those investing on bitcoin today only have the stock or likely to say that sources of Incomes is centered on the economy and from there investors buys bitcoin.
So the bitcoin market do well drives supports or declines based on the condition of the economy market. That's where economic and regulatory policies have the potential influence on manipulating the bitcoin market.
So it's just mean that in a favourable economic conditions bitcoin price may rise due to massive buying will price falls when economic market goes bad because Investors may have not option to tackle with their financial services m

[henry_of_skalitz]

It is true that the crypto market is being affected by the world's economy in either positive or negative ways. But how did this come into existence?

Aside bitcoin or the decentralized markets entirely, the world including those investing on bitcoin today only have the stock or likely to say that sources of Incomes is centered on the economy and from there investors buys bitcoin.
So the bitcoin market do well drives supports or declines based on the condition of the economy market. That's where economic and regulatory policies have the potential influence on manipulating the bitcoin market.
So it's just mean that in a favourable economic conditions bitcoin price may rise due to massive buying will price falls when economic market goes bad because Investors may have not option to tackle with their financial services m

Investors pull out of the smaller markets faster than from traditional ones.

Because it's easier and because other markets (in their eyes) are more risky than the rest, that's natural.

[Spaceman1000$]

It is true that the crypto market is being affected by the world's economy in either positive or negative ways. But how did this come into existence? As at 5 - 6 years back, Bitcoin and crypto currencies has been seen with negative eye sights, several countries placing ban on its use, and Bitcoin not having much/any effect from the world news/economic situation. But ever since the introduction of taking Bitcoin and some altcoins into reserve, the effect of the world economy started affecting the price of Bitcoin and the crypto market at large, though, the market easily recovers from this downsides.

The effect of whales where ones in control of price manipulation, then we started seeing the entrance of big investors and wealthy business persons, and now countries and government leaders coming into this space. To my observations, the involvement of the governmental bodies has lead to the effect of economic crisis affecting the price of Bitcoin/crypto assets. Is this suppose to be? As Bitcoin is not managed, controlled or in charge by anybody?

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

_{I stand to be corrected in any area where I am wrong.}

Ordinary hence any product start getting value, people will start pushing narratives whether positive or negative towards that product, you can see that ever since Bitcoin has been growing astronomically different agenda has been pushed towards bitcoin, some from government others from private sectors, but has it stopped bitcoin from being what it was created for, of course no, the decentralized nature of Bitcoin gives it a special preference that no negative propaganda has a direct effect on it.
So you answering your question, the involvement of every holder and every other investor in bitcoin including the government has so far helped to give crypto especially bitcoin a positive Push, just before the U S presidential election, you could see how the current U.S president had positive eulogies on bitcoin, he has ordinarily added credence to bitcoin and crypto at large.

[Frankolala]

Bitcoin has proven itself to be a hedge to inflation and a store of value overtime. It's a speculative asset and the price history of bitcoin have made a lot of people believe that it's worth buying and hodli for the future due to the gradual depreciation of fiat overtime. Investors sentiment is what affects the market and financial market is one of the key factors that the world economy depends on.

[YOSHIE]

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

Of course, the government has solutions and impacts on bitcoin, whether it's positive and negative they can regulate all of that, we currently live under the government law they can bring us/the community in the good and bad direction, as well as Bitcoin.

But it needs to be understood, even though the government enters and makes a positive law about Bitcoin, you cannot take a lot of profit, except: You are a big investor who works with the government you can part of it, if you diluent don't expect much, you only know the government is receiving bitcoin, that's all you can't do anything.

[henry_of_skalitz]

Bitcoin has proven itself to be a hedge to inflation and a store of value overtime. It's a speculative asset and the price history of bitcoin have made a lot of people believe that it's worth buying and hodli for the future due to the gradual depreciation of fiat overtime. Investors sentiment is what affects the market and financial market is one of the key factors that the world economy depends on.

More fiat means more value going to BTC eventually - it's as clear as day that the printing machine won't stop, and it makes those who understand it to appreciate BTC even more in the current situation.

[m2017]

It is true that the crypto market is being affected by the world's economy in either positive or negative ways. But how did this come into existence? As at 5 - 6 years back, Bitcoin and crypto currencies has been seen with negative eye sights, several countries placing ban on its use, and Bitcoin not having much/any effect from the world news/economic situation. But ever since the introduction of taking Bitcoin and some altcoins into reserve, the effect of the world economy started affecting the price of Bitcoin and the crypto market at large, though, the market easily recovers from this downsides.

The effect of whales where ones in control of price manipulation, then we started seeing the entrance of big investors and wealthy business persons, and now countries and government leaders coming into this space. To my observations, the involvement of the governmental bodies has lead to the effect of economic crisis affecting the price of Bitcoin/crypto assets. Is this suppose to be? As Bitcoin is not managed, controlled or in charge by anybody?

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

_{I stand to be corrected in any area where I am wrong.}

The global economy and the economies of individual countries are closely interconnected. Changes in one area immediately affect others. It's like communicating vessels. That's how it works and it can't be changed. In the same way, the global financial market is connected to the cryptocurrency market. Despite the apparent isolation of the cryptomarket, this market is still part of the global economy, because money from the global economy is invested in this area. Yes, bitcoin is not personally controlled or managed by anyone, but the fact is that this market is subject to the "laws of the market" in the same way as other financial markets. That is, it is indirectly controlled by these laws and we see the result of this influence in the fluctuations of the cryptomarket.

Why is bitcoin becoming partly invulnerable to the news background? Perhaps this is due to the growth of capitalization of it and against the general background, fluctuations that are insignificant by current standards turn out to be barely noticeable. That is, it is likely that bitcoin is becoming less volatile compared to previous years. Or there simply wasn't any major negative news directly related to this market.

[Zigabel]

The effect of whales where ones in control of price manipulation, then we started seeing the entrance of big investors and wealthy business persons, and now countries and government leaders coming into this space. To my observations, the involvement of the governmental bodies has lead to the effect of economic crisis affecting the price of Bitcoin/crypto assets. Is this suppose to be? As Bitcoin is not managed, controlled or in charge by anybody?

So, this pushes me to ask, does the involvement of the world government have more positive effect to the crypto market than negative?

_{I stand to be corrected in any area where I am wrong.}

Crypto market is flooded by people who are in the real world economy and so it has to be affected by the happenings in the world economy around the world. both government bodies and whales who are big players in the world economy make their moves in the crypto market based on what they have seen happening in the economy so its effect can actually be positive and also negative, its always a two sided thing and can not be only on one side as to positive or negative alone. This is one of the reasons you see that there's volatility in the  market and there's also times when the market crashes and also when the market does well.

In Oder to maintain a balance there has to be a time when there will be a down time and a good time in the crypto market obviously influenced by the economic situation as at that time but then its normal that there should be a balance of advantages and disadvantages of the effect of the economy on the crypto market at any point in time when there seems to be an economic down time or economic boost in the economy.

[Solosanz]

Because in the past not many people hold Bitcoin and they're mostly having technical knowledge.

Now, people who own Bitcoin can vary from high knowledge person or stupid person who only have money.

Average Joe making decision based on news and what they see around, hence whenever there's something with global economy, it affect Bitcoin.

[Rikafip]

Well, when economic situation the world is good, investors and more willing to take the risk, and whether you accept it or not, bitcoin is still seen as a highly risky asset so no wonder that situation turns to shit, people are selling and/or investing less.

That's how it goes now that Bitcoin entered the mainstream and big playera are dictating the price.

[Churchillvv]

The world economic situation is relatively connected to bitcoin in recent times but it's not overly a negative effect to bitcoin but more like an opportunity to those who see opportunities at the slightest, but however to fact remains that bitcoin is now an asset that the world has now seem to begin to invest in hence whatever affects the world affects bitcoin indirectly.

Everything that has to do with money in today's world whatever news we have affects it temporarily because fear is now common in the market hence people panic sell at every world news.

[Kagaru]

Actually crypto used to feel untouchable by traditional finance but now it's tied to the economy just like stocks or gold. The more governments and big money step in the more it moves with global trends also it gives crypto more legitimacy but also takes away some of its rebel spirit. The fast recoveries show people still trust it but it’s definitely not the same as it was five years ago.