After the shock of the coronavirus, stock markets turned down, erasing $6 trillion of value within a week. Here is how this value compares with Bitcoin.
Stock Markets Still Make Bitcoin Valuations Look Insignificant
The stock markets, a centuries-old and highly developed system handle trillions in value. A flash crash last week erased around $6 trillion in just a few days, after a panic sell-off based on fears of economic slowdown and a recession. The rapid index decline is massive in comparison to the scale of BTC trading.
A rough calculation estimated that the stock market erased value worth 694,573,873 Bitcoins.
The stock market fell the equivalent of 694,573,873 bitcoin in a single week. https://t.co/NcOnW4ITAL
— Blockfolio (@blockfolio) February 28, 2020
Of course, the total supply of Bitcoin will be only 21 million coins, which means the stock markets erased 33 times the hypothetical total supply of BTC. Stock markets reflect immense economic activity, and this is taken as a sign that in cases of wider Bitcoin adoption, the leading crypto coin may represent more significant value.
Currently, Bitcoin trading is relatively small in comparison to stock markets, even at $43 billion per day. Real liquidity may be even lower. But if BTC starts trading on par with more traditional assets, there are even higher limits to its potential valuation.
BTC May Have Unlimited Size Based on Traditional Asset Valuations
The New York Stock Exchange boasts of companies valued close to $30 trillion in total. To map that kind of value, BTC would have to cost more than $1.5 million per coin, a still outlandish valuation that is envisioned in a scenario of “hyperbitcoinization.”
The market cap of BTC is now that of a mid-range company, not even close to tech giants which are valued at around $1 trillion or above. The potential upside of Bitcoin is thus quite significant if the asset starts to appeal as a mainstream investment. The large discrepancy in money valuation shows the long-term potential and the possibility that BTC is just starting to become accepted.
The Bitcoin correlation to the stock market is rather paradoxical. BTC absorbs inflows from enthusiastic traders who do not yet see fears of a recession. For that reason, Bitcoin largely follows the general direction of stock markets.
Recently @sunnydecree made a video about the stock market showing strong correlation to #Bitcoin (from a Macro Perspective) and I have to agree with Sunny on this. @IvanOnTech made a response video showing that #BTC is not totally correlated. Which is also true. (Tweet Continues)
— Kevin Svenson (@KevinSvenson_) February 29, 2020
But on some occasions, BTC spikes during crisis news, acting as an offset to falling stock indexes. Bitcoin is also highly volatile, showing the possibility of rapid appreciation.
What do you think about the latest stock market moves in relation to Bitcoin? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter: @blockfolio, @KevinSvenson_ origin »
Traditional finance markets and commodities continue to feel the pain as the world goes into lockdown. Cryptocurrency markets and Bitcoin have recovered a bit of lost ground recently and it appears that BTC may have just ‘reset’ its fair value.
Gold has joined the proverbial blood bath both traditional and crypto markets have faced over the last few days. The sudden drop is reminiscent of the volatility seen in Bitcoin markets, but we’re still waiting for the likes of Peter Schiff to dismiss the yellow metal’s “store of value” qualities. The markets seem to be...
Coinspeaker Bitcoin Price Dropped to $8500, S&P 500 and Dow Futures Are Falling as WellThe rapidly spreading coronavirus appears to have pulled down the global traditional investment markets with Bitcoin joining the fall, giving up its hypothetical store of value status.
The BNB coin is a utility token with multiple use cases within the Binance ecosystem. Binance's growing product suite supports BNB's large valuation and its position as a top 10 crypto asset. However, its value has suffered in recent weeks as negative macro headwinds created by the Coronavirus hit the global financial markets.
A senior Economist at U. K’s central bank has published a working paper on how speculation affects the value of digital currencies. Peter Zimmerman, a BoE economist, highlighted that crypto coin users are mostly speculative making it hard to realize the transactional value of digital assets like Bitcoin.
Cryptocurrency markets have been climbing higher in value as coins like BTC have gained over 19% during the last 90 days. However, many other digital assets have seen much larger gains and BTC dominance has been sliding downwards consecutively for the last 14 days.
Despite some analysts arguing that the next bullish cycle has already begun for the cryptocurrency markets, there still appears to be a lot of value sitting on the sidelines. Just short of $6 billion is being held in different stablecoins, presumably waiting for a signal to enter the market.
DeFi protocols are proving their value after providing profit-making opportunities during diverse market conditions. Building Financial Utility In the first half of 2019, as the cryptocurrency market started to rise from multi-year lows, DeFi got its first taste of a bull market as loans on Maker hit an all-time high of $505 million.
How did your 2020 begin? While the world's greatest economic and military superpower was inching close to war with yet another Middle Eastern country, Bitcoin was sitting back and watching its value sThe post Bitcoin price breakout caused by markets, not by Iran appeared first on AMBCrypto.
It speaks for the unique irrationality and lingering immaturity of cryptocurrency markets that a year which followed a seemingly interminable death spiral and yet saw Bitcoin more than double its dollar value is not interpreted to be as bullish as it would be for any other asset.
Recent intervention from the Fed in providing liquidity to the US market has outweighed what was injected into the market during the 2008 financial crisis by some margin. In fact, it can be seen as the biggest intervention in the repo markets in history, something in which Bitcoin is immune.
Volatility returned to the crypto markets this week. The BTC price bounced strongly over the weekend jumping by over US$500 in value after 5 days of bearish price activity. It was also a good week for blockchain fundamentals as segwit usage on Bitcoin hit an all time high and Monero's privacy abilities were publicly endorsed by a Europol analyst.
The size, liquidity, and growth of crypto markets are still in its infancy. Even all crypto-related activity is still minimal in comparison to traditional assets. Global Stock Markets Add More Than 3 Times the Total Value of Crypto Assets in a Week Global stock markets continued to rally in 2019, despite some fears of a correction.
Amidst a grinding price slide, Bitcoin boredom has set into crypto markets. Interest indicators fell to levels not seen since March, according to Google Trends. Yearly Google searches for ‘Bitcoin’ peaked at the end of June, at a value of 100.
With crypto prices moving after almost every positive or negative bit of news related to China, gold and silver markets have been reacting to such events as well. With some exceptions, the overall trend in their value has been negative since September.
The Crypto Fear and Greed Index hit its lowest value in months.…
The post Bitcoin Price Recovers Above $7,000 But Markets Shiver in ‘Extreme Fear’ appeared first on CCN.com
Coinspeaker Bitcoin Price Fall Below $7,000 as Cryptocurrency and Traditional Markets Follow SuitCrypto and traditional markets slide as the U. S. and China are yet to resolve their trade disputes.
Crypto markets shed $28 billion in combined value on Friday, as bitcoin's sentiment index shifted to "extreme fear."
The post Crypto Markets Head for Worst Day in Two Months as Bitcoin Sentiment Shifts to ‘Extreme Fear’ appeared first on CCN.com
The international payment company MercuryFX has recently joined Ripple in an effort to make quick transfers with a low value around the world. The goal of the firm is to be able to reach markets that were too expensive to access before.
Protesters take over the streets of Iran after the government announced dramatic fuel price hikes. The regime has blocked internet access and closed its Iran border. Iranians are facing a dire situation which will likely force many to resort to a currency that offers a safe and portable store of value, such as bitcoin.
Disney’s stock surged to record highs following the launch of Disney+. Verizon likely played an important role in the successful launch of the streaming service. Disney+ already boasts 10 million subscribers.
Vinex, a Singapore cryptocurrency exchange, announced today the listing of the PegNet (PEG) token. Markets now supported include PEG/BTC and PEG/USDT. PegNet is a decentralized, non-custodial network of tokens pegged (stabilized) to different currencies and assets that allows for trading and conversion of value without the need for counterparties.
OKEx, a bitcoin and crypto asset exchange headquartered in Malta, announced the launch of USDT futures trading, served as a virtual derivative product that is quoted and settled in USDT. Each contract has a face value of a fixed amount of digital tokens.
Recently, Bitcoin evangelist, Pierre Rochard, made an appearance on Peter McCormack’s podcast, WhatBitcoinDid. According to Rochard, there is, and always has been, value accruing to conversion between fiat currencies and Bitcoin.
Grayscale Investments, the world’s largest currency asset manager has received FINRA approval for the public quotation of eligible shares of Grayscale Digital Large Cap Fund under symbol GDLCF on OTC markets, announced the company on Monday.
Last spring and the beginning of summer 2019 saw digital asset markets spike considerably in value, and many speculators assumed the rise was due to institutional investors. However, BTC and a variety of other popular digital asset prices started plummeting in August.
Today on Bloomberg Markets, CoinList Co-founder and President, Andy Bromberg, spoke about the drop in Bitcoin’s value and how the Bakkt launch is a signal of more comfort about institutions entering the space.
There was major panic in the cryptocurrency market today as most coins took double digits losses of over 10%, with some like Bitcoin SV losing close to 30% of its value in 24 hours. The Ethereum price also exhibited a 16% loss, but things might be looking up.
As the Bitcoin price is seemingly intent on trending lower over the next few hours and days, there will be other markets reaping the benefits. Altcoins need to rise up in value to thwart Bitcoin’s gravitational pull.
Hopes for an institution-led bull run appear to have been wildly premature. Less than two days after Bakkt opened for trading, cryptocurrency markets have lost over $30bn in value. All large-cap cryptocurrencies are down, with Bitcoin (BTC) now firmly back in four-digit territory.
A mixed trading week in crypto markets ended strongly with BTC enjoying strong gains backed by its hash rate hitting a new all time high and ETH rising in value backed by a surge in network gas usage.
Digital currency markets have dropped in value over the last three weeks, losing $25 billion since mid-August. Market prices have been creeping downward on thin global trade volume and the last two months of volatility seem to be taking a toll on short-term bullish optimism.
Interest for "BTC" has exploded to a new record on Google Trends as search results for bitcoin's ticker symbol skyrocket. The phenomenon started around August 30, when "BTC" searches suddenly went parabolic.
Interest for “BTC” has exploded to a new record on Google Trends as search results for bitcoin’s ticker symbol skyrocket. The phenomenon started around August 30, when “BTC” searches suddenly went parabolic.
Are you holding cryptocurrencies other than bitcoin? If so, you might want to overhaul your portfolio. That's because an expert in classical charting principles warns that buying altcoins is not a wise investment decision.
The Dow Jones dropped by more than one percent on September 3 following several weakened futures trading sessions, dropping 285 points as the U. S. and China imposed additional sanctions over the weekend, triggering conversations about a possible recession.
Time to burst a bubble. Bitcoin isn’t a safe haven asset. And that’s a good thing! Bitcoin is a revolution. A change in the way we exchange value. A shift in the established system. A radically alternative monetary policy.
The article is penned by Charles Edwards - Investor in mispricing. Stock & crypto news, strategies and opportunities as they arise. Twitter: @caprioleio The NEXO Token Value Proposition In a world of zero and negative interest rates, and overpriced assets, the NEXO Token offers a unique value proposition.
By CCN Markets: On this day in 1999, TY inc. abruptly ended the sale of Beanie Babies. It marked the end of a wild toy craze that sent the value of some of these toys soaring and made collectors willing to pay thousands of dollars for a single bear.
Cryptocurrency markets are in the midst of a significant sell-off, with top digital assets losing over five percent in value over the past twenty-four hours. As the Bitcoin price has now fallen through two key support levels, analysts are predicting further losses, with BTC likely to fall below $9,000.
Last week cryptocurrency prices bounced around after a majority of coins dropped in value on August 21. Today on August 26, digital currency markets have gained around 1. 52%, gathering $4 billion since the initial slump.
By CCN Markets: Perceptions of gaming and gamers are on the cusp of changing thanks to the rising popularity of mobile games. This year alone, the value of the gaming market is expected to jump to a staggering $152.
Cryptocurrency markets fell hard on August 21 following the $700 price drop bitcoin core (BTC) saw during the early morning trading sessions. Most digital assets have lost 2-8% in value as the overall market valuation of all 2,000+ coins has plunged to $263 billion.
Nevermind the double-digit price swings. Despite the day-to-day roller coaster ride of crypto markets, spiking demand in China and Argentina point to a pivot point for the largest digital currency – from risky bet to safe store of value.
In the last couple of days, BTC has been under immense selling pressure. The digital asset has gradually shed value leaving many questioning when this will end. Some believe bitcoin, and cryptocurrencies in general, are plummeting due to the growing economic tensions.
Everyone can see the cryptocurrency markets aren’t heading in the right direction. Bitcoin is bleeding value once again, which automatically forces the rest of the markets to follow suit. With Ethereum dipping below $180 and Litecoin not sustaining $80, the remainder of the week looks rather bleak once again.
What started out as a trade dispute between the world’s two largest economies is now a full-blown currency war as the U.S. and China bring their big guns to the battlefield. The impact on the global financial markets was immediate and severe, driving up safe-haven assets as ordinary people fear losing the value of their […]
The post Currency War Erupts as US and China Bring Out the Big Guns appeared first on Bitcoin News.
In a single day, $1. 05 trillion was wiped out of the US stock market. This decline represents one of the largest of any single day in recent times and also reflects a mix of unsatisfactory economic data and huge struggles among major companies.
GameStop stock (NYSE:GME) price drop has had a profound impact on the meme coins, leading to widespread declines in meme coin prices. While GameStop Corp. is a renown American video game, consumer electronics, and gaming merchandise retailer, its stock among the meme stocks which is the reason as to why its price movement correlate with […]
Ronin, an EVM blockchain specifically designed for gaming, is the brainchild of Sky Mavis, the creators of the popular Web3 title, Axie Infinity. This game alone has generated over $1. 3 billion in revenue.
Coinspeaker
Hong Kong IPO Market to Rebound This Year after Turbulent 2022
Despite the raging impact of inflation in different economies, monetary authorities have not been sitting on their oars, rather, they have been fighting the surge through consistent interest rate hikes.
Bitcoin over the years has shown an increasingly strong positive correlation with the S&P 500 and other major US stock market indexes. When the correlation weakens and turns negative, price movements in BTC can be especially substantial.
