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?
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?
It's true that people will be start looking for alternatives if a traditional stock market goes down, but they are mostly unlikely to come to crypto market. The reason is simple, when an investor looks for capital protection, they would look for a safer avenue of investment and cryptos are not considered safer by many because of its volatile nature! So an investors will turn to precious metal market and the trend is evident! I already posted a chart in another thread which is given below,
The trend is pretty clear as you can see the gold price is steadily increasing due to the slowdown in the traditional stock market. These investments are least likely to flow to crypto market in any way!
That is why I prefer to invest more on a less volatile market such as Gold. Unlike Bitcoin or any other crypto currency, the movement of prices for Gold are much safer and is less risky. If I would earn a lot of profit I would save and invest less in crypto world and more on physical market.