Bitcoin Follows Tech Down, Fat Finger Trading Enters Crypto

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Last Updated on 7 May 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Bitcoin traded as low as $35,000 at a certain point on Friday as crypto markets mostly traded in sync with tech stocks again, which means everything saw major losses. Saturday morning at the time of writing this article, Bitcoin trades at $35,800 and Ether changes hands for $2,600.

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Worst one-day drop

Coins which had gained the most in April, such as Apecoin and Stepn, were in the first week of May among those that are losing the most. Talk about a reversal of fortune. Similar signs are being seen in tech markets where stocks that have brought huge gains for investors in the past years, such as Netflix and Amazon, are now among the biggest losers.

The Nasdaq Composite knew its worst one-day plunge since June 2020 on Thursday while Friday did not bring relief. It is clear that investors are going full risk-off and that crypto is seen as being the same level of risk as tech stocks right now.

The selloff of everything tech and crypto by major Wall Street investors can be traced back to several causes. Firstly there is rising inflation and the threat of the Federal Reserve rising interest rates, a move that will most likely be mirrored by the European Central Bank later this year. The combination of those two economic factors makes life more expensive for the masses and makes lending more difficult to obtain. Investors thus believe that markets will go into recession and are going full risk-off, leaving tech stocks and cryptocurrencies out of favor.

Furthermore, Russia’s invasion of Ukraine (which, lest we forget, has been ongoing for three months already) is sending energy prices ever higher and heightens concerns about supply chain constraints and weakening business conditions in many developing parts of the world. All this causes concern.

This week markets took a sudden a U-turn following the Federal Reserve’s meeting.

Lucas Outumuro of IntoTheBlock stated.

Market participants welcomed Jerome Powell’s statement of no 75-basis points on Wednesday, rising strongly, just to end at lower levels on Thursday. Stock market indices and crypto moved in sync, yet again.

Fat finger trading enters crypto

Earlier this week a so-called flash-crash occurred in European stock markets, with the Scandinavian indexes being the heaviest hit. At a certain point, the Stockholm OMX 30 share index fell by as much as 8%, before recovering most of those losses to close the session down 1.9%. Global bank Citi later released a statement, claiming that one of their traders had made a so-called ‘fat finger’ error.

On Monday, one of our traders made an error when inputting a transaction. Within minutes, we identified the error and corrected it

A spokesperson for Citi stated.

The term relates to a mistake being typed into a keyboard, causing millions of dollars of losses because a zero was added where it shouldn’t be or a comma was forgotten to be inserted. Human error.

On Wednesday, a crypto community group supporting the Juno coin made a similar, albeit smaller error. They moved some $36 million dollar to a faulty address on the blockchain where no one has access to anymore. Ouch.