Bitcoin acts in the same way as the stock market | City & Business | Finance

The cryptocurrencies react to big players in the market like bitcoin, in the same way stocks might react to a financial paper released from a large company.

Kevin Murcko, CEO of cryptocurrency exchange CoinMetro has explained how cryptos hold comparisons with the way the stock market moves.

Mr Murcko said: “Much like the movement of stocks, cryptocurrencies tend to follow the general trajectory of the market and key players in that market.

“In the stock market for example, a negative financial report for one retail stock often hurts other retail stocks as collateral.

“In the crypto markets, this means that if bitcoin does well, or does poorly, these price changes are reflected in those of other cryptocurrencies.”

He went on to say that bitcoin is seen as the “base currency” of the crypto world, with the leading market capitalisation and a point of exchange with fiat currencies like the dollar.

Mr Murcko said: “For these reasons, bitcoin is enormously influential- a canary…