Quote from: xvids on August 28, 2019, 05:40:34 PM

Quote from: Naida_BR on August 15, 2019, 07:12:38 AM

I was thinking that investors would think the cryptocurrency market as an alternative to traditional investment products.
Having said that, my point was that those two markets have a reverse impact.

If the stock market goes down, then investors would start searching for alternative (more profitable) investments and turn to Bitcoin and cryptocurrencies.
The last days stock market crash seems that lead the market cap of the crypto market down.

Does the Stock Market has impact over the Bitcoin price?

I don't know but maybe it does just like what you've said if the stock market drops they might come to crypto as an alternative,
And what if they already gain profit from crypto they could justtake it all away and put it back in stock.
Who knows maybe there are some people who might have been doing it stocks to crypto or the other way around .

I see some individuals investors taking away money from stocks & bonds into cryptocurrencies.
That's for sure, but that would be tiny percentage with limited monetary impact.

Currently most institutional portfolios I've seen, cryptocurrency is less than 0.01%, as a high-risk asset to maximize returns and diversify.
Why not increase it further? Because after a point, the curve inverts and the systemic risk introduced by cryptoassets outweighs the diversification benefits. If anything, we have been slowly reducing exposure, not increasing; while also dumping GBP and increasing exposure to low volatility currencies such as Yen

When we have a severe market crash, the tendency is to flee to safer assets, not plunging into more uncertainty & risk (except for a few market contrarians, but those already made their move long ago). It's not rational but human nature.
I don't know a single institutional fund manager who would increase their risk potential in a downturn..even if its the right thing in hindsight...as they might as well lose their job in the worst time possible and a get a taint on their reputation. The scope of actions of a fund manager is severely constrained after all.. you don't get to do what you want... I wish.
Funds will probably do what traditionally has been done before and invest in safe assets with low volatility. That means fleeing to gold, US Gov Bonds, CHF, Yen, some real estate.