Post
Topic
Board Economics
Re: Connections Crypto Market <-> Stock Market
by
alyssa85
on 07/03/2018, 11:38:55 UTC
In the last two months we've seen a few bigger ups and downs in both the Crypto- and the Stock market.
Sometimes the drops were happening simultaneously.

What do you think, how strong are the ties beweet those two markets?
Are there e.g. people taking money out of the Stock market while it drops and putting it into Cryptos or vice versa?

If the same people are invested in both using margin, then they can become correlated as investors sell bitcoin in order to pay their margin fees i the stock market (and vice versa of course).

As soon as you introduce leverage into these systems they start to correlate.