Bitcoin & Cryptos Win the Fight against Bears But Lose against Stock Market Madness

Achal Arya Bitcoin News published October 13, 2018 | modified October 13, 2018

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Bitcoin & Cryptos Win the Fight against Bears But Lose against Stock Market Madness

Greens are back as Bitcoin rises to $6,325 while Digitex Futures, Steem, and Tron lead the crypto gains. Crypto market fell down in tandem with the stock market crash and now both are recovering. This has now raised the notion that cryptos might not work as a hedge when stock market erupts in madness.

Greens back in the crypto market

Bitcoin is in the green by about 0.14 percent at $6,325. After dropping to about $6,200 level but saved by the $6k mark, it is yet again crawling upwards. The world’s leading cryptocurrency’s daily trading volume has now dropped down to $3.3 billion while having a market cap of $109 billion.

Bitcoin 5-days price chart, Source: TradingView

In tandem with Bitcoin, altcoins are also recovering. Tron (TRX) is the top gainer among the top cryptocurrencies with over 7.38 percent gains. Digitex Futures (DGTX) is the biggest gainer with 59.30 percent while with 8.54 percent gains Steem is making a good recovery.

To 11 cryptos, Source: Coinmarketcap

Global stock market madness spilled into crypto, Bitcoin- No safe haven?

It all started when the day before yesterday, the global stock market took a severe hit. Yesterday has been a turbulent day that took S&P, Nasdaq, tech stocks, Asian market, and even currencies down.

This raised the hopes of the crypto enthusiasts to see the money flow from the mainstream market into the crypto as the crypto trader and analyst Alex Kruger had shared: “A BTC breakout today, in a day when stocks and bonds are getting crushed, would be noticed by the whole world and would be very bullish. Waiting.”

However, cryptocurrencies lost in tandem with the stock market. To which Kruger shared,

“Treasuries and Gold are two assets widely used as portfolio hedges. Correlations with stocks broke down in 2018. Hence, in the event of a market crash, portfolios may suffer losses both from the stocks side and the hedge side. Forcing PMs to sell assets, accelerating a crash.”

A couple of months back, Matt Hougan, vice president of research and development at Bitwise Asset Management Inc had shared with Bloomberg,

“Non-correlation is not the same as inverse correlation so there’s no guarantee that when the market goes down crypto will go up. Over the long term, we think the fundamental drivers of crypto are different from the fundamental driver of equities and other assets, and we would expect the low correlation to persist.”

However, as the founder of Adamant Capital, Tuur Demeester shared on twitter:


Now, today crypto market starts making recover and US stock market has also rebounded where S&P 500 ends 1.4% higher, Nasdaq gains 2.3% and tech stock enjoyed the bounce back as well.

Now, this has brought forth the notion that crypto won’t be getting the limelight when traditional markets begin to fall.


To which, popular crypto trader, Crypto Squeeze agreed with. However, it could also be argued that Bitcoin hasn’t been in a position to spike yet as it recorded low trading volume.  

Do you think in future as the stock market will crash, Bitcoin and cryptocurrencies will be seen as an alternative option of investment? Share your thoughts with us by commenting below!

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Achal Arya 384 Articles
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.
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