Bitcoin Shows Strength as Meta & Amazon Dip
Bitcoin (BTC), the largest cryptocurrency by market capitalization, is outperforming major tech stocks such as Amazon and Meta. The development emphasizes BTC’s disconnection from tech stocks. While major tech companies reported a weak third-quarter earnings report, Bitcoin continued to show strength.
Amazon shares fell 20% in after-hours trading. At over $230 billion, Amazon recorded the largest post-closing loss in history.
Regarding the firm’s Q3 report, Amazon CEO Andy Jassy stated,
“There’s obviously a lot going on in the macroeconomic environment, and we want to balance our investments to become more streamlined without compromising our important long-term, strategic efforts.”
Meta stock, on the other hand, fell by up to 24%, reaching 2015 levels below $100. Almost the entire technology sector has suffered losses this year, but Meta’s share decline has outpaced the sector as a whole. Meta shares are down 67% from a year ago, compared to tech-heavy Nasdaq’s 31% decline over the same period. The shocking market value loss caused by Meta’s fall amounts to around $700 billion.
Additionally, Netflix’s stock price is below $300, representing a 50% year-to-date decline.
Bitcoin (BTC), on the other hand, is only down 6% more than Netflix.
Is Bitcoin decoupling from tech stocks?
Although recent developments play into Bitcoin’s disconnection from tech stocks, there is no clear indication that the trend has taken full shape.
Mario Nawfal, founder of IBC Group, a blockchain consultancy, stated,
“While it’s too early to tell if this trend will continue, it’s worth watching.”
Still, the original cryptocurrency did not escape the economic fall of 2022. According to Santiment, Bitcoin whales have been dumping their holdings, mainly for stablecoins. They expect the big wallets to jump back to Bitcoin when prices are “exciting enough.”
Many do not expect the next bull run anytime before the world pulls itself out of the current economic predicament.
At press time, Bitcoin (BTC) was trading at $20,183.40, down 2.2% in the last 24 hours. BTC is down around 58% in 2022. Additionally, the currency is down 70.7% from its all-time high of $69,044.77, reached in November 2021.
