Weak Bitcoin Hands are “Mostly Gone” as BTC Ignores Amazon and Meta Stock Declines.

by | Nov 13, 2022 | Bitcoin, News | 0 comments

Bitcoin, which is known for its volatility, has only lost 18% or more in a single day ten times in the past ten years and twice in the past five.

As of the right moment, the Nasdaq and S&P 500 have more 20-day volatility than Bitcoin, according to analysis from data provider Kaiko. Over the past year, META has underperformed in both BTC and ETH.

Large tech stock losses, which often happen after Wall Street closure, do not translate into a drop in the price of bitcoin.

In a study report published on Thursday, Kaiko reported that “Bitcoin’s market share of trading volume touched its greatest level in more than two years.” Since April, Bitcoin dominance has grown significantly, suggesting that after the collapse of Terra’s ecosystem and the wave of high-profile bankruptcies over the summer, sentiment has shifted primarily to the downside.

The future for equities is becoming more and more uncertain due to disappointing profits, a pending central bank decision, and a turbulent macroeconomic environment.

However, BTC/USD prevented a domino effect. Economic data for Q3, 2022, showed significant losses for some tech stocks.

Hodlers of bitcoin ignore the Q3 tech findings.

After reaching its greatest levels in six weeks, the largest cryptocurrency lost over $800 on October 27, or 3.8%.

As of the publication of this article, Bitcoin was still trading at roughly $20,200, exhibiting more consolidative trading behavior than a significant decline.

However, this was not the case for IT stocks, which were driven by a spectacular 20% decline in Amazon during after-hours trading as a result of failed earnings projections. At almost $230 billion, Amazon’s market cap secured the largest post-close decrease in history.

The CEO Andy Jassy said in the company’s third-quarter results release, “A lot is occurring in the macroeconomic climate, and we’ll balance our investments to be more streamlined without jeopardizing our important long-term and strategic commitments.”

Although a sign of the unsettling state of flux that digital titans around the world have been experiencing this year, Amazon’s comedown notably failed to inspire copycat actions on cryptocurrency exchanges.

However, the same is true for similarly upsetting outcomes from Meta, whose stock price dropped under $100 this week and returned to levels from 2015.

The end of 2021, according to economist, trader, and entrepreneur Alex Krueger, was characterized by sharp price reductions that coincided with Netflix’s subpar performance.

The 20% of slump that followed Netflix’s earnings in January caused $BTC and $ETH to drop 20% and 30%, respectively. On October 28, he tweeted: “Today Amazon’s results and its subsequent 20% drop pushed $BTC down 2% and $ETH down 3%.”

“Weak hands are mostly gone,” with its current stock price of $300, Netflix is down 50% year-to-date, and according to statistics from Cointelegraph Markets Pro and TradingView, BTC/USD is down another 6%.

Continuity of Correlation

The finding contributes to a burgeoning narrative about Bitcoin’s relationship with conventional markets.

The clear-cut lockstep movements between BTC and equities over the last week have not been present, with the latter having to play catch-up as stocks cooled. Bitcoin’s increasing resemblance to gold is currently receiving more attention, as Cointelegraph has reported.

Overall, though, it’s still premature to declare a long-term trend change in association with, say, the S&P 500.

Although it’s too soon to tell if this trend will persist, it’s important to keep an eye on it, according to Mario Nawfal, the founder of Blockchain consulting company IBC Group.

Conclusion

This article expresses just the author’s ideas and opinions, not necessarily those of Cointelegraph.com. Every investment and trading action entails risk, so you should research your options before choosing.