Big Tech Trading Like Bitcoin on a Bad Day After Disappointing Earnings
Bitcoin, known for its volatility, has only lost 18% or more in one day on 10 occasions over the last 10 years, and only twice in the last 5 years
Source: Shutterstock
key takeaways
- Bitcoin managed to stay above $20,000 as Big Tech stocks continued their decline in after-hours trading
- Amazon lost more than 20% during the after-hours session Thursday while Meta closed Thursday nearly 25% lower
Based on Thursday’s session, Big Tech is starting to trade like cryptocurrencies.
Although bitcoin managed to stay above $20,000, paring just 2% over the day, Big Tech stocks continued their decline in after-hours trading following disappointing earnings results.
Amazon lost more than 18% during the after-hours session Thursday after the company missed on revenue. Meta closed Thursday nearly 25% lower, ending the trading session at its lowest price since 2016, after posting a 4% year-over-year revenue decline.
Apple, by contrast, posted a record quarterly earnings but still could not escape the market decline and lost 5% during the trading session, according to data from Investing.com.
Bitcoin’s volatility is legendary, but…
Bitcoin, known for its volatility, has only lost 18% or more in one day on 10 occasions over the last 10 years, and only twice in the last 5 years.
Bitcoin’s 20-day volatility is now lower than both that of the Nasdaq and S&P 500, according to research from data firm Kaiko. Both BTC and ETH have outperformed META over the past year.
“Bitcoin’s market share of trade volume hit its highest level in more than two years,” Kaiko noted in a research report released Thursday. “Bitcoin dominance has increased sharply since April which suggests that sentiment has turned predominantly bearish after the collapse of Terra’s ecosystem and the wave of high-profile bankruptcies over the summer.”
Disappointing earnings, coupled with a looming central bank decision and a tumultuous macroeconomic environment, is creating an increasingly uncertain outlook for equities.
“US stocks are struggling for direction after a mixed bag of earnings was accompanied with economic data that supports the idea that the economy is weakening,” Edward Moya, senior analyst at Oanda, said. “Mark Zuckerberg is looking reckless here…artificial intelligence investment was boosted and now everyone is expecting Meta to have a free cash flow problem.”
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