Bitcoin is Falling Along with Technology Companies

Over the past seven days, the value of BTC has decreased by 12%, to $39 thousand, while the potential for a further drop in quotations remains. Nevertheless, the negative is now observed not only for cryptocurrency, but in general for risky instruments, for example, US technology stocks: over the past week, the Nasdaq index, with which BTC correlates, sank by 4.3%.

At the same time, the dynamics of shares of companies that showed the most rapid growth after the outbreak of the pandemic generally coincides with the dynamics of BTC: for example, CrowdStrike Holdings (cybersecurity) lost 13% in a week, Sea Limited (mobile games) – 15%, and so on. In other words, we are talking about a global decrease in risk appetite, which is reflected in the cost.

Including cryptocurrencies.

There is no positive news on digital assets, while the expected reduction of the Fed’s stimulus programs, geopolitical tensions in Eastern Europe, the suppression of protests in Canada – all this does not serve as the best background. In such conditions, we should expect a further decline in quotations up to $ 35 thousand and below.