The last 3 days have not been kind to stock investors.
The Dow has lost over 1000 points since the open on Tuesday. Though to be fair, that is less than a 5% drop.
(Source: https://finance.yahoo.com/quote/%5EDJI?p=^DJI)
In our current environment, 300 point moves seem to be the norm these days as the Dow has been at lofty levels for some time now.
What is interesting this time is that bitcoin is not being dragged down with it.
A few weeks back when the Dow took it on the chin, it also appeared to drag down bitcoin and the entire crypto markets right along with it.
It appeared to be a global risk off trade as every risky asset experienced sharp declines.
This appears to be much more orderly and bitcoin is actually going up as stocks continue to slide:
(Source: https://www.coinbase.com/dashboard)
What happens from here?
The fact that risky assets are not being sold in unison is a good thing, at least for bitcoin.
It means that even if the stock market takes a significant dump, bitcoin doesn't have to go down with it.
In fact, bitcoin may become somewhat of a safe haven if investors are trying to lock in gains in the stock market and look to hide out in something until the storm is over.
As they see bitcoin hanging in there or even appreciating in value, it might attract some capital as a store of value.
Which is good news considering many stock forecasters are forecasting a rocky next few weeks/months for stocks.
Which also means we can probably throw this chart out the window:
(Source: https://www.cnbc.com/2018/02/08/bitcoins-correlation-with-stocks-jumps-to-2-year-high.html)
Bitcoin is likely getting back to it's traditional position of showing almost no correlation to the stock market, if not a slightly negative correlation to stocks.
All in all, I'm looking forward to a good spring in crypto land, regardless of what happens in the stock markets.
Stay informed my friends.
Follow me: @jrcornel
Just hope that my losses in the market are offset by gains in BTC/STEEM 😁👍😁
Same here!
I feel we have now put in a top, to take out February bottom...Look out below, I think the down will be wishy washy here at bare min. We could be entering into a deeper correction phase!
So you think that $5,900 is going to be broken on BTC in the near term?
Yeah bitcoin is holding its ground...It will bounce back soon...
Crypto spring is coming!
I like the sound of that, Crypto Spring!
Yeah me ...too
Looking forward to crypto spring!!
It makes sense. The crypto market is a value based tokens. The other is a value based stock. One is a centralized company the other is a decentralized platform. No PE ratio and growth and solvency.
Interesting Piece @jrcornel
When you say
What makes you think this? I hope you are right! But what makes you confident this will turn out to be true?
It is mostly just an assumption on my part based on its historical pattern. Historically I believe bitcoin is negatively correlated to the stock market to the tune of about -.1, which is just slightly negative, and means that there really isn't much correlation at all.
Great analysis on btc decoupling from the stock market!
These months are normally not good for crypto market, graphs are going to be higher in a few months.. bitcoin invades the market and has its strong hold over it..
Let's hope your right.
As for it being indirectly related, I would say that BTC is considered to many as a hedge against currencies, similar to that of gold. Therefore, if the demand, recognition and acceptance of BTC becomes much larger, there is a chance it would be in a similar position to that of gold and the stock market.”
I would say that is a pretty good guess as well.
thanks for sharing this news
Thanks for this cryptocurrency news updateproviding....
i appreciate this bitcoin. resteemit
Good information thanks you for sharing,,
So it seems my friend, the markets are not hand in hand with investors, but if they manage to place their assets in bitcoin, I believe that their profits will be uncountable, I say this because for the coming months there is an increase in bitcoin that is foreseen until the $ 19,000, the crypto market is in diaper, according to all the information I've been able to climb ,,, excellent post my friend @jrcornel reviews this> https://steemit.com/bitcoin/@frederichs/bitcoin- ethereum-bitcoin-cash-ripple-stellar-litecoin-cardan-neo-eos-price-analysis-feb-28
I think that as stocks decline, more investors are looking at crypto for the potential profit. Demand and trading activity goes up and so do the values - let's go!
Good information and thanks for sharing
I always buy the dips of any asset class. The whole purpose of my savings account is to buy dips in the s&p, silver, steem, and specific stocks. If the stock market crashes, I’ll use any liquidity to buy up deeply discounted sound companies.
Can't argue with that. Sounds like a pretty good strategy to me. I do something similar. :)
I would like to know how do you think crypto will react to a forex market crash, because we have never experienced that yet, since Bitcoin was created after the 2008 crash!
There are some that thought that bitcoin was actually the leading indicator for the fall in stocks. Either way you are right there does not appear to be any correlation this time. Which is a good thing other than most of us W2 earners have more to lose in stock 401Ks than our crypto holdings.
Hoping things will turn around in no more time....will follow you for more update
Very cool!! This is a very cool thing to see. The future of crypto is looking bright! :)
Nice post
When stocks do poorly, the value of gold goes up. If bitcoin is an asset of digital gold it should also do well.
Muy buena información, gracias por compartirla.
The way cryptos are going vs the rest of the worlds economy I fell that we will have a decentralized world wide money system in less than 10 years. the inevitable war that we will see in the following years will drive world currencies down and people will opt for a more stable currency which their country cant take from them to fuel wars. just my opinion but I can see that as the way the world is going