Stocks are different than cryptocurrencies, stocks are from physical companies that exist in the world and are affected by an economic crisis because their sales and stuff get disturbed because there is inflation and people don't have a lot of money to spend, thus those companies face losses and that causes their stocks to go down, but for Bitcoin or cryptocurrencies, it's a different story because they are not physical entities but they exist digitally.
Yes, you're correct, but what we've seen in the market is that when there's an economic crisis, we should expect cryptocurrencies to be unaffected because they only exist digitally, whereas stocks are physical entities, but instead we've seen that they're affected as well. I'm not sure what the exact explanation is for people not choosing to invest in cryptocurrencies during an economic downturn; perhaps it was seen as an advantage by institutions or smart money. Because, when things return to normal, cryptocurrency usually makes an impulsive up move, resulting in a new high.
I do not think that cryptocurrencies are not affected because of the reason they are digital... It is a funny reason, IMO, and is wrong. The cryptocurrency market relies on supply and demand. If there is a shortage of funds coming to the market then it is clear and obvious that the cryptocurrency market will be affected. There will be no support for the market demand and when the selling pressure exceeds that of demand then the price of the cryptocurrency will plummet.
It is a domino effect when the economy is in a state of depression, the market will automatically affect no matter if it is tangible or intangible.
Not stopping there, many people also think that bitcoin is decentralized and not like stocks, it is not the product of any company, so it will not affect when the economy goes down. But they forget that, whether bitcoins are centralized or decentralized, their value depends on supply and demand. So it's funny that people are trying to defend bitcoin by saying it's digital, decentralized...so it can't be affected by our economy.
All are part of the economy and will be closely linked with each other, nothing can exist without connecting to the world economy.