The increased value of Bitcoin has been greatly benefited by increased value of the S&P500. When the S&P goes up, companies do well, people have good jobs and make money. So it makes easier for those people to invest in something speculative like Bitcoin. If there is an economic disaster and people are losing their jobs, you'll probably see people selling their Bitcoin instead of having more coins. Because what are you going to buy Bitcoin with?
If you have some Bitcoin, but you have to put food on the table, you may have to sell Bitcoin in order to do that.
It's hard to deny that there is some correlation between S&P500 & Bitcoin
Bitcoin had an amazing bull run from early 2016 up until the very end of 2017. And take a look at the stock market: that was a 55% rise in the stock market from January 2016 up into the high in January of 2018. Bitcoin did extremely well on this S&P500 run up.
In 2018 S&P500 experienced some nasty drops. Meanwhile Bitcoin had a bear market along with concerns in the economy and that makes logical sense.
Last week we saw a very dramatic fall in the stock markets due to the Coronavirus outbreak and panic around it. What did BTC? Fell pretty hard too. But what about the concept that Bitcoin is the hedge against the crisis? No, guys! It's a misconception. BTC is not the hedge! If you are wishing for an economic collapse and think that your coins will pump, you are terribly wrong.
When there are concerns in the economy, when everyone is worried about a crisis and losing jobs, the last thing people want to do is speculate on some crazy cryptocurrency. People do not flee from stable assets to riskier ones in a downturn. Don’t live in a fairy tale. Most Bitcoin holders would rush to sell.
Would you sell your Bitcoin if the economy collapsed? Tell us in the comments
If people are confident in global economy, that increases their appetite for risk, which increases the probability that they are going to put some money into Bitcoin.
So, if you are a Bitcoin bull, you want the stock market to rebound as soon as possible and keep reaching new all-time highs.
Another point is that we've never had Bitcoin in an S&P500 bear market. But sooner or later it will happen. Bitcoin is the most speculative asset so it is expected to be affected the most by the S&P500 bear market.
However, this could change in the future, but as of right now this asset is pretty new and immature.
Would Bitcoin survive in an economic collapse? Might it be a safe haven in a global economic crisis? Tell us your opinion in the comments!
If you like the idea, please, hit the Like button and subscribe to the profile in order not to miss our updates.
The information given is never financial advice. Always do your own research.
If you have some Bitcoin, but you have to put food on the table, you may have to sell Bitcoin in order to do that.
It's hard to deny that there is some correlation between S&P500 & Bitcoin
Bitcoin had an amazing bull run from early 2016 up until the very end of 2017. And take a look at the stock market: that was a 55% rise in the stock market from January 2016 up into the high in January of 2018. Bitcoin did extremely well on this S&P500 run up.
In 2018 S&P500 experienced some nasty drops. Meanwhile Bitcoin had a bear market along with concerns in the economy and that makes logical sense.
Last week we saw a very dramatic fall in the stock markets due to the Coronavirus outbreak and panic around it. What did BTC? Fell pretty hard too. But what about the concept that Bitcoin is the hedge against the crisis? No, guys! It's a misconception. BTC is not the hedge! If you are wishing for an economic collapse and think that your coins will pump, you are terribly wrong.
When there are concerns in the economy, when everyone is worried about a crisis and losing jobs, the last thing people want to do is speculate on some crazy cryptocurrency. People do not flee from stable assets to riskier ones in a downturn. Don’t live in a fairy tale. Most Bitcoin holders would rush to sell.
Would you sell your Bitcoin if the economy collapsed? Tell us in the comments
If people are confident in global economy, that increases their appetite for risk, which increases the probability that they are going to put some money into Bitcoin.
So, if you are a Bitcoin bull, you want the stock market to rebound as soon as possible and keep reaching new all-time highs.
Another point is that we've never had Bitcoin in an S&P500 bear market. But sooner or later it will happen. Bitcoin is the most speculative asset so it is expected to be affected the most by the S&P500 bear market.
However, this could change in the future, but as of right now this asset is pretty new and immature.
Would Bitcoin survive in an economic collapse? Might it be a safe haven in a global economic crisis? Tell us your opinion in the comments!
If you like the idea, please, hit the Like button and subscribe to the profile in order not to miss our updates.
The information given is never financial advice. Always do your own research.
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Twitter link: twitter.com/CryptoBullet1