Will the stock market's bearish outlook affect the Cryptocurrency Market?

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About 3 months ago I was reviewing what was happening in other markets as the cryptocurrency market kept falling. So I opened up tradingview and what I saw was something so incredible I had to look a second time, I thought I had opened up the BTC/USD chart but it had not yet fallen. I was a bit confused but I realised my Tradingview opened to the DOW at the time it was looking extremely euphoric and then upon a little more research I saw it was in the longest bullrun it ever had. I instantly wanted to see does this just apply to the Dow Jones or does it also apply to the likes of the Russel, S&P500, Nasdaq, Vanguard and then I even looked at the housing market. What I saw I am honestly going to say baffled me, what was there before me was a perfect opportunity, I knew that soon the stock market would fall and started letting people know about hedging.

Last year for many was a huge learning experience and even if many lost money, they learned about financial markets for the first time and may have bought their first ever investments. This was a huge plus for many people who were labelled noobs or noob investors. Why you may ask? Well the simple answer is that noobs tried investing for the first time. Now you sit there and think but they got Rekt right? I was speaking to one of my friends whos been around since 2013 he told me he made mistakes the last bullrun and bear market and because of the understanding he had from those losses and mistakes he made millions this past bullrun. Another nice fact to share with is this was just the start of the knowledge pool and we still only have 2% of the world owning cryptocurrencies. So applying what was missed by many i was this as an opportunity to share my findings and you will see many doubted me, but 3 months later the markets are all down on average 15%.

Now to discuss, will the stock market continually falling affect crypto? The simple answer is yes, I thought maybe some of this will flow into cryptocurrencies at the time but I also realised since that crypto was nowhere near where it needed to be to see that growth! Since I made the video above we have seen all markets fall considerably as people hedge to metals and fiat. A question you may be asking yourself; How will this affect crypto if we go into a full blown recession? This is a hard question to answer, but I will give what I believe will happen. If we go into full blown recession in 2019 all markets will suffer including crypto, this is a harsh but real reality, when money is tight people pull out of investments and go into cash and precious metals like gold. Many think if the recession happens over time with education on mass about cryptocurrencies and the usecases of blockchain technology there will be a slow growth and sometime in 2020 another potential bullrun. Will they be right is to be seen, but I am sure of one thing that by 2022 all those who remain in the space and focus on the goal of mass adoption will be grately rewarded as the 2017 bullrun will be laughable in 5-10 years time.

Joel Kovshoff

Director at BlockRake

 

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Joel Kovshoff
Joel Kovshoff

Educator, Start-up Accelerator, Trading services, Speaker, MC and Entrepreneur


Cryptocurrency Education / Block Traders
Cryptocurrency Education / Block Traders

Vlog about Cryptocurrencies and Traditional markets

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