Will tech rout pull down crypto as well?

Pondering on whether Bitcoin could finally reach $70,000, I wrote last Sunday: ‘If the stock markets really start a selloff, crypto will normally fall along with it. If the stock markets remain stable, Bitcoin can indeed go higher.’

It seems that those stock markets I referred to (and especially those where many technological shares are traded) have indeed started a sell-off due to the poor results of both Alphabet and Tesla.

$1.2 TRILLION

That’s how much the US stock market lost in one day - yesterday. 😳

NASDAQ had its worst day in 22 years.

Que paso, amigo? pic.twitter.com/cJoFIOGIhK

— S.L. Kanthan (@Kanthan2030) July 25, 2024

The American tech stock exchange Nasdaq recorded its worst day in two years this week. Crypto followed the morning after when it turned out that an Ethereum ETF did not really provided the hoped-for results and that the correlation between tech stocks and crypto (and especially Bitcoin) continues to exist.

Nasdaq

Nailed it ?

Down 14% since . https://t.co/U9yqKFy4W6 pic.twitter.com/KPWeb2qyZ3

— The Great Martis (@great_martis) July 25, 2024

However, optimism returned this morning, probably due to the start of the big Bitcoin 2024 conference in Nashville and Asian traders who still chose to pick up crypto despite all the bad news and therefore sent prices higher again. At the time of writing, Bitcoin is already trading at $66,200.

A look at #Bitcoin 2024’s Industry Day ⚡️ pic.twitter.com/OGQA2r3tfR

— The Bitcoin Conference (@TheBitcoinConf) July 25, 2024

Asian hours

As is often the case, Bitcoin fell fastest during the Asian trading hours on Thursday, after investors in Seoul and Tokyo processed the results from the United States. It also rose fastest on Friday morning, once again mostly during Asian hours.

The price of Ethereum, which according to some analysts is increasingly trading in correlation with that of chip maker Nvidia (which is having a bad month of July), fell faster than the other digital coins in the CoinMarketCap top 10.

Next week, Microsoft, Meta, Apple and Amazon will also report results. If those would turn out to be as bad as Alphabet and Tesla, it is possible that tech stocks would undergo a correction.