Ask HN: It used to be that when stocks fall, Bitcoin goes up. What happened?

https://news.ycombinator.com/item?id=10113799

by traviagio • 11 years ago

10 17 11 years ago

news.ycombinator.com

T-A• 11 years ago

This? http://www.coindesk.com/bitcoin-price-slumps-following-bitfi...

traviagio• 11 years ago

I am not talking about a temporary flashcrash. People used to think of Bitcoin as a safe heaven when else goes downhill. Just like gold. I don't think that's the case anymore.

vectorpush• 11 years ago

People used to think of Bitcoin as a safe heaven when else goes downhill

I don't really think this is true. There might be some bitcoin enthusiasts who hold this view, but I haven't seen any evidence of this belief in the wider finance community.

Kinnard• 11 years ago

There are too many factors to tease out what's going on at any given moment. There may be upward pressure from what's happening in equity markets and demand for bitcoin as a vehicle currency[1] to get ether, and there may be downward pressure because of a possible hard fork as well as the outage of a major exchange.

If you really knew what caused what with the bitcoin price, that'd be really special information and you'd be a very special person.

You can make your best guesses as to which forces will dominate. And you can be wrong.

These dynamics change as the scope changes.

[1] http://www.answers.com/Q/What_is_a_vehicle_currency

ant6n• 11 years ago

Gold was also down today.

Falkon1313• 11 years ago

Silver and gold both seem to be dropping lower than they've been in years. Legend has it that when stocks go down, precious metals should go up. But what if gold, silver, and stocks were all in a bubble at once? They all kind of look bubbly by the long-term charts. Would that signify that we're finally reaching the end of the recession, or that we're beginning a new one?

aminorex• 11 years ago

Andresen and Hearn are forking the blockchain. The future of bitcoin thus becomes clouded.

bbcbasic2• 11 years ago

I thought bitcoin went up on hype, down on fear. Opening up China markets, for example pushed the price up to over $1000. Then that hype died, along with MtGox and here we are.

davidgerard5• 11 years ago

Opening up China markets, for example pushed the price up to over $1000.

I thought it was pretty established that (a) that was Willybot (b) there was no exchange you could actually get dollars out (so, not Mt. Gox) of where the price was over $1000.

Phlarp2• 11 years ago

(a) seems to be the generally accepted reason behind the runup to $1200 but (b) is patently false. I sold coins on coinbase and mtgox during this period and received deposits of USD within the week. The amounts were all below the six figure mark, so perhaps there were individuals with million dollar or more holdings that had issues finding instant liquidity. However, I imagine this is true of almost all assets of comparable size.

bbcbasic2• 11 years ago

Ok maybe a robot trader did it (with the help of the pump and dump strategists that follow such bubbles), but it certainly wasn't anything to do with the real economy, which supports my original point.

If I remember correctly, the price went over $1k on Btc-e and you could get your money out, but it was always certainly trading lower than a Goxcoin.

deciplex• 11 years ago

Perhaps we have finally found the one thing that, apparently, is not good for Bitcoin.

davidgerard5• 11 years ago

Bitcoin is so thinly traded that it's hard to say anything useful on price movements and outside events.

Look at the spam attack - Bitcoin was all but unusable, and the price went up.

Ask HN: It used to be that when stocks fall, Bitcoin goes up. What happened?

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