Bitcoin and crypto flashcrash because of ETF rumor, technology stocks keep dropping
Last Updated on 4 January 2024 by CryptoTips.eu
Americans and Europeans are quite different, even though both make up ‘the West’ (along with Australia, New Zealand and Canada) and are usually governed in a democratic manner. Yet there are important cultural differences and this is also clear in terms of how they invest.
Europeans are more likely to keep it safe with larger savings accounts and safer investments such as real estate, while Americans like playing the stock market and sometimes want to take a risk on technology stocks or opt to put a large portion of their earnings in crypto.
BREAKING NEWS: Rumors have emerged that the SEC will reject all #Bitcoin ETF applications in January. However, these are just rumors so far! pic.twitter.com/MPp8p4P2VG
— sunnydecree (@sunnydecree) January 3, 2024
Many Americans had apparently switched into crypto in recent weeks, especially after tech stocks fell sharply in recent days. The American media already called it the end of the Santa Claus rally, although that may be premature.
However, with the approval for a Bitcoin ETF being delayed again yesterday (some claim it was a rumor from a Matrixport intern), the crypto market experienced a minor flash crash. New investors were not really used to this, and so you quickly noticed a lot of frustration bubbling up on social media.
MatrixPort, a firm that I've never heard of comes out and says that (in their view) the spot #Bitcoin ETFs won't be approved by the SEC this month.
— Caleb Franzen (@CalebFranzen) January 3, 2024
They are one firm. They might be right. They might be wrong.
This report is causing this selloff in #Bitcoin this morning. pic.twitter.com/K8UMifAsOY
Profit warning
Some technology stock choices also appear to be in need of a change. Since December 29, several well-known names have already lost more than 10%.
Tech selloff on the first trading day of 2024: pic.twitter.com/TW1fkTU33t
— Charlie Tian, GuruFocus CEO (@GurufocusC) January 2, 2024
The last time this happened was at the end of October, after a profit warning from Alphabet (Google’s parent company).
In recent days, it was mainly Apple and the chipmakers who had to take heavy losses. And now the crypto market takes a hit as well. The next few days will show whether it was indeed a rumor or not. In any case, a new reminder that profit and loss in crypto are sometimes close together.
The #Bitcoin Spot ETF is one of the most significant events since the existence of Bitcoin.
— Michaël van de Poppe (@CryptoMichNL) January 3, 2024
The second time in a row the markets react from an 'intern' posting unconfirmed information.
That's how easy to manipulate the markets are.
Buy the dips and be patient.
All in all, a very interesting start to the new year.