to be fair, the overall concept of crypto market affecting stock market isn't so outlandish; remember, "subprime" loans wasn't anywhere close to overall size of stocks/bonds yet had a profound effect in 2008-2009.
That said, a little dump like Thursday really doesn't do much, prices were still WAY WAY up for even the week on that day. Furthermore, even if cryptos have an effect on stocks, it is most likely the effect would be delayed by a decent amount of time, measured in months if not years.
Good point, though the mortgage market was roughly $10 trillion at the time. Not subprime, but the entire market. Plus it was much more interconnected to the overall economy than something like bitcoin.
Subprime really wasn't connected to the larger market that much, only in similarity of sector.
Same goes for crypto, it's the subprime of fiat right? While bitcoin itself may not be able to print money, other cryptos DO simply by being created. And also bitcoin itself now forks often, thus doubling and pentupling itself. Regular fiat rarely does that (except in the 1930s when the US gov't spot-reduced the value of the dollar to stop specie payments).
A subprime crash can create a feeling of poorness from once heightened wealth, and that can create tightening of the belt, just like crypto rising creates the opposite ,no? Almost a trillion in crypto has been created from nothing, and those crypto millionaires spend money. That creates a rise in spending, which will create an even worse stoppage of spending on the "other side" if crypto bubble collapses.