Does share market affect crypto market?
- Thread starter k2h2
- Start date
People are avoiding fiat money because it is susceptible to market, economic, political etc. This increase in demand has made companies to invest in crypto currencies. So crypto affect stock market. Its crash is dependent on the amount of crypto linked with it. So they are linked to each other but if they remains relatively mutually exclusive then it should not be vice versa as long as the energy is cheap.
https://taxguru.in/finance/impact-cryptocurrency-stock-market.html
https://taxguru.in/finance/impact-cryptocurrency-stock-market.html
Tribune
Junior Member
- Jun 7, 2020
- 136
- 99
Yes they are deeply connected. Crypto is just antoher asset for lets say a hedge fund. This means that crypto is included in the strategy of the hedge fund. This can basically mean anything. For example, if they need liquidity for stocks they can sell crypto which can affect the crypto market.
Tribune
Junior Member
- Jun 7, 2020
- 136
- 99
Yes it‘s correlated. But you can‘t know the direction of the cause effect relationship or even if there is one. You only know that it moves simultaneously. The cause could be completely different.
- May 27, 2016
- 11,310
- 2,569
I agree with this answer.
If direction is not fixed, how can we benefit from this?
Direction depends on which ever takes less energy.