Bitcoins & Stocks

[finances5]

Hi,

Is there an interrelationship between Bitcoins & Stocks? Whereas if the Stocks were to go down, do the Bitcoins also go down or vice versa? Or are they independent of one another?

Thanks!

 

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[Jake]

No. Bitcoin is an experimental technology with a thin order book. It moves violently in both directions. If for some reason a lot of people get hardup for cash and need to liquidate all assets than I guess there can be some correlation..but not really. The market cap (if you want to call it that) is on the low end of a single mid-cap stock.

In the distant future there may potentially be a reverse correlation as people run from trusted 3rd parties to assets which require 0 trust.

 

[Almond]

I have made some money on bitcoins during the peak of Grexit talks this summer. It was fairly easy to predict: if the euro goes down, bitcoin goes up, so I traded BTC/EUR. Correlation with stocks? No I don't think it exists. And even with currencies bitcoin is hard to predict bcause there are no fundamentals behind it. I now wonder if bitcoin is sensitive to risk apetite and demand for safe-haven assets... It is so appealing to trade bitcoins because of high profit potential, but the risks are high too.