Market Recap: Crypto and Tech Jump as Investors Take Advantage of Low Prices

Tech stocks rip higher

Tech stocks jumped significantly today — a relief to a sector that has been battered since the start of the new year.

In the last month, the Nasdaq 100 index shed over 9% while the QQQ ETF, an exchange-traded fund that tracks major companies in the technology sector, dropped by over 9.5% on the year. Some of the biggest tech losers in the new year include several of Cathie Wood's Ark Invest ETFs. The ARKK innovation ETF has fallen over 22% so far this year.

Investors seemed to take advantage of down markets today, especially within the tech sector. The Nasdaq increased by 3.29% by the end of the day. QQQ saw a jump of 3.2% and ARKK went up almost 9.5%. Semiconductor companies like Nvidia and AMD also saw huge increases with 7.21% and 8.56%, respectively.

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Crypto jump

Similar to tech stocks, bitcoin, etheruem — and the cryptocurrency industry in general — have experienced a significant drop in the new year. Bitcoin has dropped nearly 20% year-to-date while ether has fallen closer to 30%. The entire market capitalization of the cryptocurrency market has dropped by roughly $520 billion.

Investors turned back to riskier assets like tech and crypto in an attempt to take advantage of lower entry points.

Bitcoin increased by 1.26% by the US market close and increased as much as 2.10% intraday. The more volatile ether rose by 2.95% toward the market close and increased by as much as 2.9% intraday.

Other more volatile altcoins like Solana saw jumps of 7% or more. Investors seem to be looking to increase positions in both tech and cryptocurrency after the intense drops at the start of 2022.

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Top stories

Story: SEC Approves First National Blockchain-powered Boston Security Token Exchange

• The SEC has given the nod for BSTX to begin providing customers a market and price feed based on blockchain technology.
• The move marks the first time the SEC has granted approval for a national blockchain-enabled securities exchange.

Story: A DAO May Close Up Shop and Liquidate 81 Bored Ape NFTs

• The DAO’s NFT holdings are worth roughly $11.8 million, according to crypto data provider Zapper.
• Bored Ape Yacht Club NFTs currently have a floor price of $309,353 in ether, according to OpenSea.

Story: Bored Ape NFT Holders in Limbo After Steep OpenSea Losses

• An OpenSea spokesperson told Blockworks 130 wallets were refunded, totaling 750 ether or $2,014,905.
• Some victims adorned their avatars with “BrokenSea” and “Lost Ape” shirts.

Story: Bitcoin Network Transaction Volume Surpasses AmEx, Research Shows

• Bitcoin’s transaction volume has increased by 100% annually over the past five years, a new report said.
• Consumer spending has slowed amid rising inflation and new Covid variants.

Earnings season

Major earnings reports are scheduled for tomorrow among crypto-adjacent companies that could have some sway on markets.

Alphabet, which recently revealed that Google would be creating a blockchain unit and making a push into the industry, is set to have its earnings call post-market tomorrow. PayPal made a push into the cryptocurrency industry in the last year with crypto wallet support. Its earnings call is Tuesday after market close. MicroStrategy, a company that has become well-known for its massive bitcoin holdings, will also release earnings after hours on Tuesday.

Going forward

There is still a large amount of uncertainty in the near-term markets. An immense level of confidence has been placed on cryptocurrency, NFTs and the metaverse in a more broad and long-term sense, especially with the number of large brands and companies investing in the space. But fears regarding Covid-19, raging inflation and interest rate changes have increased volatility in the markets. Markets will likely remain this way until more clarity regarding policy changes is announced by the Federal Reserve.

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