Bitcoin Weak Hands Are ‘Mostly Gone’ As BTC Ignores Amazon, Meta Shares Decline
Bitcoin (BTC) Disconnects From Big Tech As Disappointing Earnings Don’t Lead To Big BTC Price Losses.
Economic data for Q3 2022 saw heavy losses for some tech stocks, but BTC/USD avoided a chain reaction.
Bitcoin hodlers shrug off Q3 technical results
The biggest cryptocurrency shed around $800 on October 27, or 3.8%, after hitting its highest levels in six weeks.
At the time of writing, Bitcoin was still around $20,200, offering more consolidating trading behavior than a major correction.
The same wasn’t true for tech stocks — which were led by a dramatic 20% rout in Amazon in after-hours trading thanks to missed earnings targets. Amazon’s market cap sealed the largest close-quarter drop in history, at over $230 billion.
“There is obviously a lot going on in the macroeconomic environment, and we will balance our investments to become more streamlined without compromising our important long-term, strategic efforts,” CEO Andy Jassy commented in the company’s third-quarter earnings report.
While evidence of the problematic flux experienced by tech giants around the world this year, Amazon’s downturn failed to trigger copycat movements in the crypto markets.
The same is true of similarly painful results from Meta, whose share price fell below $100 to return to 2015 levels this week.
This is a change from the end of 2021says economist, trader and entrepreneur Alex Krueger, at the time characterized by sharp price drops, which came in tandem with poor performance at Netflix.
“Last January, the Netflix earnings and subsequent 20% crash sent $BTC down 20%, $ETH down 30%. Today, Amazon earnings and subsequent 20% crash sent $BTC down 2%, $ETH down 3%,” tweeted on October 28:
“Weak hands are mostly gone.”
With that, Netflix is down 50% year to date with its current share price around $300. BTC/USD is down around 6% more, data from Cointelegraph Markets Pro and TradingView show.
The correlation has not gone away
The observation feeds into a growing narrative about Bitcoin’s correlation to traditional markets.
Related: Record 55,000 Bitcoin, or Over $1.1 Billion, Just Withdrawn From Binance
Over the past week, there has been no clear movement between BTC and stocks, with the former playing catch-up as stocks cooled. As Cointelegraph previously reported, Bitcoin’s increasing correlation to gold is now gaining attention once again.
Overall, however, a long-term trend change in correlation with, for example, the S&P 500 is still far from confirmed.
“While it’s too early to say whether this trend will continue, it’s worth watching,” Mario Nawfal, founder of blockchain consultancy IBC Group, in summary.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
