Tags: Stocks 7 min read Some say that cryptocurrency and stock markets are tightly interconnected, weaving the common fabric of the present-day global financial system. Their opponents believe those are two completely separate financial entities with different regulation which is true and, most importantly, different set of investors which still needs to be proven.
In this article we will take a closer look at the processes of money transfer between the equity market and the cryptocurrency one. In the end we will also see if there is a viable connection between the two markets. Certain experts have stated that the two markets are, in fact, much closer to each other than previously thought.
Their initial recovery phases fall within the same timeframe, too. Price up and trading volume down of bitcoin This theory is far for perfect and here is why.
The cryptocurrency market began to contract on January 7th, much earlier than the stock market. The latter first demonstrated short yet steady depreciation on January 26th, which lasted for only ten days.
Depreciation of a comparable scale would have no doubt annihilated the national economy of the United States and trigger an international crisis of unimaginable proportions.
Pexels Tra i paesi che guardano con maggiore interesse alla rivoluzione crypto in atto ci sono anche le Filippine, dove la borsa valori nazionale ha dichiarato di voler svolgere anche il ruolo di exchange per le criptovalute. Non appena possibile, non appena le autorità locali approveranno la regolamentazione necessaria. Si attende dunque solo il via libera da parte della Philippine Securities and Exchange Commission, impegnata fin dal in un confronto pubblico sul tema che coinvolge tutte le parti in causa: istituti bancari, investitori e cittadini. PSE si pone come realtà in grado di assicurare la regolarità delle transazioni e la tutela dei risparmiatori tenendo conto ovviamente del rischio volatilitàcontrollando già l'infrastruttura impiegata per il mercato azionario tradizionale e disponendo delle autorizzazione necessarie, nonché della conformità agli standard previsti. L'apertura del paese nei confronti di Bitcoin e delle altre monete digitali è cosa nota: una dozzina di exchange hanno già ricevuto il via libera per gestire le operazioni di trading.
This is why it is safe to assume that two events — depreciation of the stock market and a sudden dip in the crypto industry — have little in common. There is no way to accurately track all money movements across the markets. However, certain assumptions still can be made. If both the volume and the asset prices go bitcoin vs stock trading, then somebody is actively buying cryptocurrencies.
PSE (Filippine) vuol diventare un exchange crypto
If the volume goes up but the prices keep falling, then traders are selling their assets. The contraction of the trading volume can hint at the dominance of holders, people who stick to their assets and avoid panic selling them during the bearish market cycle.
Whatever the reason for coordinated moves in the markets, the correlation does not imply causation. Currently there is no reason to believe that one market be it equity or cryptocurrency can directly and effectively influence the other. As seen from the analysis provided, depreciation and appreciation of the cryptocurrency on one hand and conventional assets on the other have little in common.
BTCUSD Grafico cripto
Their movements are, most certainly, powered by two completely different groups of people. Bitcoin vs stock trading, conservative investors have expressed their doubt in bitcoin and altcoins, citing their volatility and sticking to well-known trading strategies.
Crypto enthusiasts, people who believe in long-term success of cryptocurrencies in general, see no need to invest conservatively, as they can increase their investments manifold during an extremely short period of time. Cryptocurrency and equity markets can, however, become more tightly interconnected in the future, when, or better yet, if cryptocurrencies make their way to the list of generally accepted investment instruments.
Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Tagged in.