What Will Happen To Crypto During A Stock Market Crash?
The American stock market has been on a monstrous rise since before Bitcoin was created, what happens when it crashes?
This is a tough question. The crypto and stock market are two different beasts.
The obviously much larger stock market has gained all the losses after the 2007/8 crash and has set record highs the last 9 days strait.
It is pretty amazing, but everyone from Tony Robbins to Warren Buffet have warned of a major pullback or crash happening soon.
Traditionally August and September are two bad months for the stock market and October has been the month that the largest crashes in history started.
How far up will the market go before we see a major sell off? It is over 22,000 right now which is incredible.
The crypto market is an entirely different animal.
It is new and doesn't have a track record to follow like the stock market, but it seems almost entirely built on the strength of Bitcoin.
With the recent fork for Bitcoin, and the incredible rise to over $3,300 it proves that Bitcoin is strong and isn't showing too many signs of slowing down. If Bitcoin remains strong, I think the crypto market stays strong.
With a strong crypto market, stock investors who are getting nervous about a crash or major pullback might consider investing in crypto instead of other commodities or bonds.
With the bond market on shakey ground, gold and silver will still look good, but crypto has to garner some attention.
If the crypto market becomes a safe haven for major stock investors during time of uncertainty the we could see some incredible gains if the stock market starts to fall.
(all gifs from www.giphy.com)
I have heard many say that the crypto market is tied to the stock market and that may have been true a year ago or so, but right now, I think the crypto market has at least come into it's own enough to grow independently of the stock market and could see a major spike if stocks fall.
That is just my analysis and I'm not a professional financial advisor, just someone who studies the markets and sees real opportunities for all of us involved in crypto.
What do you think will happen to the crypto market when the stock market crashes?