The digital currency seems to be breaking away from the tech groups with which its prices have been moving in tune with for some time.
Bitcoin (BTC), the most popular cryptocurrency, is rebounding despite big tech’s massive losses this week, and has risen to $20,000 after several weeks of trading in the $19,000 level.
The digital currency is clinging onto the $20,000 level and was trading at $20,467 in mid-day, an increase of 7% during the past seven days, according to CoinGecko.
Tech giants lost a whopping $560 billion in market value this week after Amazon (AMZN) – Get Amazon.com Inc. Report led a disastrous earnings season for the mega cap companies. Microsoft (MSFT) – Get Microsoft Corporation Report, Alphabet (GOOGL) – Get Alphabet Inc. Report and Meta Platforms (META) – Get Meta Platforms Inc. Report were all disappointing, while Apple (AAPL) warned it was still impacted greatly by supply chain disruptions.
The crypto market has been evolving for several months in tune with tech stocks on the stock market because investors believe that cryptocurrencies are as risky an asset as tech. Uncertainties about the health of the economy are weighing on risky asset classes, which are more bets on the future and not the present.
During October, bitcoin failed to generate any major upside momentum, but has remained range-bound and avoided making new lows.
Earlier in October, BTC dipped below $19,000 for several days, but avoided setting new lows.
The recent valuation of bitcoin has left investors curious about if new lows could occur before the end of 2022.
Bitcoin still has many fan such as like Ark’s Cathie Wood, but there has not been a major move to the upside as several asset classes have seen corrections due to fears of a recession from elevated levels of inflation.
The market cap of bitcoin is now at $392.8 billion. Ether (ETH), which is the digital asset with the second largest market cap of $184.9 billion, is trading at $1,537, an increase of 19.7% during the past seven days, according to CoinGecko.