Bitcoin has been tracking with some of the high risk tech bets (such as QuantumnScape, QS) over the past month:
As of a couple days ago the NASDAQ is in correction territory (more than 10% drop).
As tech equities continue dropping, so do the cryptocurrencies - or vice-versa. The additional 7% drop in Bitcoin after the close of the markets yesterday may be a signal of what to expect in the tech equities today.
My thought: many of the same people (and institutions) who invest in new technology outfits also invest in cryptocurrencies.
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Bitcoin dumps to hit six-month lows near $38K
Bitcoin is leading the way down for all crypto as macro indicators may spell disaster for the market in the short term, according to some analysts.
Bitcoin (BTC) has dumped 7.5% in the past 12 hours, plunging to six-month lows from $43,328 at 4 pm UTC on Thursday to $38,258 by 4 am UTC on Friday.
At the time of writing, Bitcoin was trading at $38,761, according to Cointelegraph.
The price crash has so far wiped about $50 billion from the overall crypto market. The total crypto market capitalization has been on a slow decline since early November 2021 when it reached a peak of $3 trillion.
Without a single bombshell piece of news that many could blame the dump on, investors are wondering what caused the price action. Some pointed to macro indicators, with tech stocks on Nasdaq entering into “correction territory” and several interest rate hikes are expected to come in 2022.
But Bitcoin moves in mysterious ways. It could just as easily be the news that Bitcoin bull Raoul Pal has apparently sold all his Bitcoin and only has 1 BTC left…
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