Nov 06, · 'Bond King' Jeffrey Gundlach: Stock Market Will Crack Pretty Hard, Bitcoin Good Inflation Hedge Doubleline Capital’s CEO, the billionaire “bond king” Jeffrey Gundlach, has predicted that the stock market is going to “crack pretty hard.”. Nov 20, · The high correlation between stocks and bitcoin could crash the price of BTC 25 to 35%. According to Santiment data analyst Vlad Antonov, the growing positive correlation between bitcoin and stocks is concerning for an eventual market crypmoney.de: Michael Lavere. Apr 27, · Bitcoin, The Crash, Gold And Hyperinflation. Clem Clem Chambers is the CEO of private investors website crypmoney.de and author of Ways to Pick Stock Market Author: Clem Chambers.
Stock market bitcoin crashHow Bitcoin Crash Can Bring Down the Whole Stock Market
Historical study of all minor corrections to major crashes tell us that when market does not have a correction every years and keeps climbing — the eventual crash is usually devastating. The most recent one is bitcoin market crash which happened after 10 years from its previous economic crash. That is important, barring very minor corrections, the stock market has been hitting new uptrend records for the last 10 years.
Everything that goes up has to come down, this is a law when it comes to the economy, gravity has more pull in the economy than in physics. Whenever Equity market crashes, people flee their investments into other asset classes and gold used to be the first stop for such a diversification. This inverse relationship has been a known fact for the stock market veterans and they usually liquidate their stocks into gold whenever the market reaches its peak.
While providing a safe haven for the investments — it is notoriously difficult to spend gold in the time of need. Bitcoin has an advantage over gold in this aspect. It can be used as currency. It is relatively easy to liquidate to Bitcoin into Fiat these days and in some location — there is no need to convert either.
Bitcoin is quickly becoming a major alternative asset class and is more popular among millennials than gold. More and more countries are becoming victims of high inflation. Zimbabwe, Argentina, Venezuela and recently Iran joined the list where the failure of fiat pushed Bitcoin prices through the roof. These and other countries have proved that in countries where people lose their belief in their Government printed money — Bitcoin sells at a premium.
Next crash is expected to happen because of global inflation and if that happens, there is a good chance that other countries will join hands in pushing the fiat value of Bitcoin. Lot of people entrust Government as their caretaker in case of crisis. Economic meltdown is a crisis that everyone blames on government and look for the same government to save us all from.
Many within the Government have openly warned against Bitcoin. If Government officials were to make such announcements during a financial meltdown — it could hurt the sentiment against Bitcoin for the worse. Crypto market is a minority when compared to rest of the financial markets, Bitcoin is even more so. It is in fact a minority with a bad rap sheet from the past in the minds of ignoramus.
It is estimated that only 40 million wallets exist in the world. That just illustrates the power of Fiat over crypto some may correctly point out that this difference represents the potential for crypto market. When an economic crisis comes, people will flock their money into things they are aware of, like Gold, Silver, more stocks at bargain prices, physical fiat, goods, etc. It is very easy to scare the crypto crowd. We have seen multiple examples of this during this year. If media were to side with traditional stock markets and fiat agencies — it is very easy to create panic and scare people from crypto into whatever their rhetoric may be.
However, in our opinion, it will make a quick recovery and will head for a steady uptrend. If we were to mark our calendars — we expect Bitcoin to surpass its previous highs by Of course, there are no guarantees and our views are biased since we are Crypto fans and we will have to wait and see to be proven right or wrong.
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Stay in touch with us at:. Cryptocurrency — just hearing the name — can spark discussion topics on how innovative and controversial it is. However, nowadays, there seems to be a consensus that blockchain — the technological backbone of every form of cryptocurrency — is the former.
The latter part of the discussion comes from the fact that cryptocurrency is still new, and needs more improvement, before it can actually be considered a wildly-accepted type of commercial public currency. On the bright side, companies like Google and Goldman Sachs have already started to invest in various blockchain firms. Therefore, data centers and cloud hosting services must be ready to serve these new blockchain-based companies, as well as their needs, in the coming years. Modern blockchain started in with Bitcoin , which is a peer-to-peer Electronic Cash System.
This white paper was a form of cryptocurrency that could live on a distributed network without any centralized authority; and blockchain is the technical backbone of that system, or a distributed digital ledger or database for it. No central authority will be able to manipulate the blockchain , since the whole network contributes to its creation and maintenance. In blockchain, two parties will make a transaction, to which they advertise it to the network.
Then, various network nodes pick up multiple transactions, and arrange them into blocks. Afterwards, miners will use computers to add this block to the ledger or blockchain. Now, in order to add these blocks to the blockchain, the task requires a lot of computing power. Because each of these blocks come with a sort of attached mathematical puzzle. And, to solve these puzzles, they need computing resources. However, blockchain eliminates that need by opening up the possibility for business transactions between parties worldwide, without the need for any financial or government institutions to step in.
The need for blockchain means elevated demand for graphical processing units or GPUs. As blockchain calculates, miners will have to provide enough computing power for it. And so may suffer during an economic crisis as a result. Check out this short term graph showing bitcoin getting a critical bounce at the exact same moment as the US stock market and crude oil.
If anything, it's really showing signs of behaving like a risk asset. With many companies warning that disruption to supply chains could result in more suffering in the months ahead.
Up until yesterday, the US economy seemed largely unaffected by concerns over coronavirus. But as South Korea and Italy confirm a number of new cases, fears of a worldwide spread finally caught up.
While the number of confirmed US cases has been relatively low, Diane Swonk , Chief Economist at Grant Thornton said the fallout from coronavirus may force the US Federal Reserve to cut interest rates as soon as next month.
As such, the lack of correlation with gold means the case for Bitcoin being a safe haven asset grows weaker. This would suggest that an economic crisis would hit the number one cryptocurrency hard. Indeed, in a recent interview on BlockTV, Andreas Antonopoulos spoke about how he sees cryptocurrency being affected by an economic crisis. And he believes a slow down in the economy would see investors shunning riskier, unproven asset classes.
On that note, Antonopoulos slated the attitude of Bitcoin investors who look forward to economic turmoil. Saying that cryptocurrency is currently unfit to serve the transaction needs of the planet. Cryptocurrency is not capable of supporting the scale of millions or even billions of people who might need to use it during an economic crisis. Samuel Wan is passionate about different cultures and eating good food.
There are some rumors about the interconnection of Bitcoin and the whole stock market. Find out three possible ways in which cryptocurrency can affect the global trade market. There have been rumors that are hovering around that even the Bitcoin crash can affect the Trade Market. These rumors are hardly believable. But what if the rumors are true? Then what? Will you be able to take Bitcoin trade lightly?
If we look into the past and go through the records, you will be able to see that technological assets once held the most economical value in the s. The same thing can be said for the cryptocurrency. If we see the market value of the cryptocurrencies all over the world then you will find out that the whole value is less than that of one single company: Microsoft.
According to Jeffrey Kleintop, for the cryptocurrency to become one of the major pillars to hamper the stock market, it needs to become an asset that is present in the household or have the asset of the leveraged investors like Central Banks. However, if you look at all the known possibilities of the cryptocurrencies, there are three possible ways that can affect the stock market after the burst of the cryptocurrency trade.
And if you do not want the stock market to crash, then be a part of the cryptocurrency trade with the help of the Bitcoin Pro App and support the market so that it never crashes.