Bitcoin (BTC), the largest cryptocurrency by market cap, is outperforming major tech stocks such as Amazon and Meta. The development adds weight to BTC’s decoupling from tech stocks. While major tech companies reported a lackluster Q3 earnings report, Bitcoin continued to show strength.
Amazon shares dropped by 20% during out-of-hours trading. At over $230 billion, Amazon recorded the largest post-close loss in history.
Regarding the firm’s Q3 report, Amazon CEO Andy Jassy stated,
“There is obviously a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets.”
Meta stock, on the other hand, fell by up to 24%, reaching 2015-levels of below $100. Almost the entire tech sector has suffered losses this year, but Meta’s stock decline has surpassed the sector as a whole. Meta shares are down 67% from a year ago, compared to the 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 under $300, which represents a 50% year-to-date decline.
Bitcoin (BTC), on the other hand, is down only 6% more than Netflix.
Is Bitcoin decoupling from tech stocks?
Although the recent developments play into Bitcoin decoupling from tech stocks, there is no clear-cut indication that the trend has taken full form.
Mario Nawfal, founder of IBC Group, a blockchain consultancy firm, stated,
“While it’s too early to say if this trend continues, it’s worth watching.”
Nonetheless, the original cryptocurrency did not escape the economic downfall of 2022. According to Santiment, Bitcoin whales have dumped their holdings, largely for stablecoins. They expect the big wallets to jump back into Bitcoin once the prices are “intriguing 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 by 2.2% in the last 24 hours. BTC is down around 58% in 2022. Moreover, the currency is down by 70.7% from its all-time high of $69,044.77, attained in November 2021.