Tech takes a beating while Crypto remains standing, Doge soars

---

Normally, the crypto market is highly correlated with the tech market. Stocks like Meta (formerly Facebook), Alphabet (the company behind Google), Microsoft and Apple are a good indicator of what Bitcoin, Ethereum and many others will do behind the times.

When the Nasdaq goes up, major cryptocurrencies usually go up one percent. Also in a decline in the crypto market usually. However, this week was different.

566 billion dollars

Bitcoin and Ethereum held up well, Dogecoin was the absolute winner of the week after it was announced that Elon Musk would take over Twitter. In one week, Doge rose 46%. Meanwhile, tech stocks fell sharply.

Seems only right to bring this gem of a meme back for #Dogecoin today 🤗🚀 pic.twitter.com/g0j9Nffp0e

— SlumDOGE Millionaire (@ProTheDoge) October 28, 2022

For example, Meta, the share of Facebook’s parent company, fell to about $99 this week, a fall of about 70 percent since the beginning of the year. Mark Zuckerberg feels it in his wallet.

Meta is just barely making it to the top 20 largest American companies, but if it doesn’t change course soon, it will be out of there too.

#Meta selloff erases quarter of company’s value after #metaverse losses top $9 billion

Facebook owner Meta’s shares sank by 25% amid a wide selloff that suggests investors are none too pleased with CEO Mark Zuckerberg’s metaverse strategy. pic.twitter.com/VWqDI907aC

— Jakes Nfts (@jakes_nfts) October 28, 2022

The prices of other tech giants such as Alphabet and Microsoft also fell sharply. Altogether, Alphabet, Amazon, Apple, Meta and Microsoft lost a good $566 billion in market cap this week.

Earlier this month, tech stocks and crypto were expected to continue to move in tandem. Ben McMillan, CIO for IDX Digital Assets, even said in Time that:

I do think a positive correlation between bitcoin and risk assets, in particular things like technology stocks, is here to stay. That’s something investors have to think about in their positioning now that they can no longer necessarily rely on a low correlation between bitcoin to tech stocks or bitcoin to equities going forward.

This week, that prediction turned out to be wrong.