Tech takes a beating while Crypto remains standing, Doge soars

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Last Updated on 29 October 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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Normally, the crypto market is highly correlated with the tech market. Stocks like Meta (formerly Facebook), Alphabet (the company behind Google), Microsoft and Apple are a good indicator of what Bitcoin, Ethereum and many others will do behind the times.

When the Nasdaq goes up, major cryptocurrencies usually go up one percent. Also in a decline in the crypto market usually. However, this week was different.

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566 billion dollars

Bitcoin and Ethereum held up well, Dogecoin was the absolute winner of the week after it was announced that Elon Musk would take over Twitter. In one week, Doge rose 46%. Meanwhile, tech stocks fell sharply.

For example, Meta, the share of Facebook’s parent company, fell to about $99 this week, a fall of about 70 percent since the beginning of the year. Mark Zuckerberg feels it in his wallet.

Meta is just barely making it to the top 20 largest American companies, but if it doesn’t change course soon, it will be out of there too.

The prices of other tech giants such as Alphabet and Microsoft also fell sharply. Altogether, Alphabet, Amazon, Apple, Meta and Microsoft lost a good $566 billion in market cap this week.

Earlier this month, tech stocks and crypto were expected to continue to move in tandem. Ben McMillan, CIO for IDX Digital Assets, even said in Time that:

I do think a positive correlation between bitcoin and risk assets, in particular things like technology stocks, is here to stay. That’s something investors have to think about in their positioning now that they can no longer necessarily rely on a low correlation between bitcoin to tech stocks or bitcoin to equities going forward.

This week, that prediction turned out to be wrong.