The S&P 500 and Nasdaq Composite saw their worst day since 2022, and the day following, cryptocurrency prices dropped due to a reversal in technology stocks.
Early on Thursday, the price of bitcoin was down 2% at $64,299.18. Due to investors’ withdrawal from high-risk assets, such as cryptocurrency, disappointing quarterly results from Alphabet and Tesla late on Tuesday affected the whole tech industry.
“With the global financial markets in disarray, it’s quite evident that the setbacks are more about larger picture macro forces,” said Joel Kruger, market strategist at LMAX Group.
Amidst softening economic statistics, poor US incomes, and ineffectual accommodating central bank actions, worries about the state and prospects of the global economy have grown.
Since most significant assets—including equities, commodities, and currencies—have fled to established safe havens, there has been nowhere to run.
He continued, saying that the market is still dealing with the aftermath of the ongoing Mt. Gox repayment schedule, which has led to a sustained wave of selling pressure on bitcoin this month.
Source (CNBC)
