- Weak results from key technology corporations fueled the most recent fall in the Nasdaq.
- Investors also sold down Microsoft shares ahead of the company’s earnings call.
In the wake of the Bitcoin (BTC) plunging on Wednesday, the crypto market saw a significant exodus of investors. As a result, the token’s value has recently plummeted along with major U.S. technology equities. After another night of suffering, BTC/USD touched its lowest level since mid-March, although it regained $39,000 on April 27 but could not hold momemntum. When trading opened on Wall Street on April 26, bitcoin touched $37,700 twice, following the stock’s downward trend.
Digital Safe-haven
Even though this sector had previously been identified as a potential source of liquidity, not everyone was certain that the sell-off had ended. A prominent trader, Kaleo, said that the recent reprieve was nothing more than a dead-cat bounce and that the actual suffering would come whenever momentum stopped.
Crypto was under pressure this week as the dollar currency index (DXY) approached multi-decade highs achieved in March 2020. As a result, market mood plummeted due to nervousness among both crypto and conventional traders. Compared to the stock market, BTC is more sensitive to macroeconomic issues like inflation and monetary policy. Additionally, the token’s position as a digital haven is now in jeopardy.
Weak results from key technology corporations fueled the most recent fall in the Nasdaq. An earnings warning from Alphabet, which owns Google, sent its stock plummeting 4%. Investors also sold down Microsoft shares ahead of the company’s earnings announcement after the bell, even though the results came in above estimates. Concerns that Tesla CEO Elon Musk would sell some of his shares in the firm to finance his purchase of Twitter weighed heavily on Tesla’s stock, which fell by 12 percent.
