Could a stock market crash affect BTC price?
The stock market witnessed some downturns following reports of the White House’s intentions to impose a new tax regime sooner than expected.
The Dow Jones Industrial Average shed off 533.37 points or 1.6%, while the S&P 500 lost 1.3% last week.
Analysts claim a stock market crash could be on the horizon. Bitcoin’s price has dipped in recent weeks too. We highlight three reasons why you shouldn’t worry much about the stock market or any impending crash and buy Bitcoin’s dip.
1. BTC Is Not Tied To Major Asset Class
The crypto market follows the universal theory of supply and demand, but it operates on an entirely different spectrum from other asset classes like gold and oil.
Bitcoin is built on the distributed ledger technology (otherwise known as the blockchain), enabling immutable data recording in a decentralized manner. Accordingly, what makes the technology tick relies on a few variables like the problem it solves and how much energy it uses to solve this problem. It’s not dependent on the value of any major asset class.
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