With Netflix Plunging 40%, Will Bitcoin Also Start Trading Like “An Overpriced Tech Stock”?

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Last Updated on 22 April 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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On a day where the business media focused on Netflix’s massive 40% fall in stock value, one analyst explained to Yahoo Finance that because of tightening monetary pressures from the Federal Reserve, the European Central Bank and other worldwide central banks, even the biggest cryptocurrency Bitcoin could soon see itself being traded as “an overpriced tech stock.”.

After the Swiss banking warnings of ‘crypto winter’ and Arthur Hayes who last week said Bitcoin could crash by June, that’s yet another warning.

Advertentie.

Google Trends indicator

Back in late 2017, when Bitcoin for the first time breached the then still magical $20,000 mark, the signs were clear for all to see as the number of queries on Google, still the world’s largest search engine, clearly showed the behavior of smaller (otherwise called retail) investors that typed the term into the search bar.

Last year again, when Bitcoin reached it’s all-time-high of $69,000, Google trends clearly showed that in the weeks before, investors had been searching for the world’s biggest digital currency online.

As we enter the second quarter of 2022 however, Bitcoin trades in tandem with many tech stocks and, admittedly, the number of Google searches for the popular digital asset have declined to the lowest levels since late 2020. Is this a sign of things to come?

Netflix and Meta signs

With Netflix and Meta (formerly Facebook) both experiencing double digit stock market losses in the past few months, questions start to arise whether a tech correction is in the air.

The tech sector has had a rough year as a result of the drastically changing interest rate environment and results like those from Netflix don’t help.

Oanda analyst Craig Erlam wrote in a Wednesday research note.

As such, the growing correlation between Bitcoin and tech from a trading standpoint cannot be overlooked. Sean Farrell, vice president of digital asset strategy with Fundstrat, said Bitcoin was trading like an “overpriced tech stock.”

Given the macro set-up, I think we are poised for another challenging period of year-to-date lows. To that point, this year we’ve seen large buyer support for Bitcoin at the $33,000 to $35,000 level. I’m not sure that we venture too far beyond that.

He added.