Huge losses in tech stocks, which mostly occur after Wall Street closes, are not reflected in bitcoin price weakness.
disassociate from big tech because disappointing gains don’t lead to big losses in BTC price.
Economic data for Q3 2022 saw heavy losses for some tech stocks, but BTC/USD avoided a chain reaction.
Bitcoin Hodlers Deduct Q3 Tech Results
The largest cryptocurrency lost $800, or 3.8%, on October 27, after reaching its highest levels in six weeks.
At the time of writing, Bitcoin was still hovering around $20,200, offering more consolidated trading behavior than a major correction.
The same was not true for tech stocks: these were led by a dramatic 20% drop in Amazon during after-hours trading as they missed earnings targets. Amazon’s market capitalization has seen the biggest decline after the end in history, to more than $230 billion.
“There’s obviously a lot happening in the macro environment, and we’re going to balance our investments to be more efficient without compromising our key long-term strategic bets,” CEO Andy Jassy said in the company’s third-quarter earnings report.
While evidence of the turbulent state of flux experienced by tech giants worldwide this year, the Amazon crash did not bring copycat movements to crypto markets.
The same goes for the equally painful results of Meta, whose share price fell below $100 to return to 2015 levels this week.
This is a sea change from the end of 2021, believes the economist, trader and entrepreneur Alex Krueger, the time marked by steep price reductions that coincided with the underperformance of Netflix.
“Last January, Netflix earnings and its subsequent 20% decline caused $BTC to fall 20%, $ETH 30%. Today Amazon earnings and its subsequent 20% decline caused $BTC to fall 2%, $ETH 3% “, he tweeted on October 28:
“Most of the weak hands are gone.”
With that, Netflix is down 50% year-to-date with its current share price around $300. BTC/USD is down about 6% more, data from Cointelegraph Markets Pro and TradingView show.
BTC/USD vs Netflix stock 1 week chart. Source: TradingView
The correlation has not disappeared
The observation fuels a growing narrative about the correlation of Bitcoin with traditional markets.
Related: A record 55,000 Bitcoin, or more than $1.1 billion, was just withdrawn from Binance
Last week saw no clear lock-in moves between BTC and stocks, with the former ending as stocks cooled. As Cointelegraph previously reported, Bitcoin’s growing correlation with gold is now turning heads once again.
In general, however, a long-term trend change in the correlation with the S&P 500, for example, is still far from confirmed.
BTC/USD correlation chart vs S&P 500. Source: TradingView
“Although it is too early to say whether this trend will continue, it is worth watching,” summed up Mario Nawfal, founder of blockchain consultancy IBC Group.
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 trading move involves risk, you should do your own research when making a decision.