Whether you believe it or not, bitcoin prices fell to its lowest level in 14 months, and in just the past week, the market is still not out of the whole encryption currency low performance, overall market capitalization was below $150 billion. Not only that, the well-known encryption currency exchange Coinbase bitcoin prices fell to $4218, but since October last year, the lowest point in the first week. Since the encryption of money market is bleak, many investors want a return to the traditional stock market, but the problem is that the stock market does not seem to intend to open arms to welcome investors to return.
Hard for a whole year, back to the night before liberation
After this Tuesday once again fell, the Dow Jones industrial average, the S & P 500 index and the NASDAQ index has been smooth, the annual increase in 2018. Is a “black Friday” this weekend? The answer to this question at present, no one can answer.
Many investors began selling stock “FAANG” – “FAANG” refers to the Facebook (Amazon), Amazon, apple and Google (Apple), Netflix (Google) five U.S. stock market value of the largest technology company, now the company’s stock price has a bear firmly in the urban area. From the beginning of the third quarter, FAANG stock market value has dropped from the highest point of the year over $1.
Chip maker Nvidia and AMD also suffered serious losses, these companies accused of encryption currency miners on chip demand began to decrease, they lead to impaired performance. Although this kind of rhetoric may not be honest, but it is undeniable that many people will use the GPU chip NVIDIA and AMD in the past to mining does not support the ASIC mine mining encryption currency, but now with the currency price fell sharply, the demand has become less and less.
TS Lombard global macroeconomic analysis business general manager Dario Perkins believes that the technology industry in the short term the unexpectedly weak might have a significant impact on the global economy. Because from the macro environment, FAANG the five tech giants spending will also bring some negative impact on the U.S. stock market trend.”
2017 years after the bull market high risk asset return
Yi Rui investment (eToro) senior market analyst Mati Greenspan noted that the technology industry and the encryption currency market collapsed at the same time, may have a certain correlation between each other. He claimed that investors can not get rid of such a feeling that the current technology stocks sold off in some way and we see the currency market crash is related to encryption.
Mati Greenspan further said that the recent trend of encryption currency market can find the root of the problem in the financial crisis in 2008, when the fed into the market a lot of money trying to stabilize the financial system, and these funds in the most part of now are beginning to enter the market, but investors rarely research on these funds, also don’t know what is the value of the assets in logic. He said:
“2017 is a special year high risk assets, including money and encryption technology stocks. In 2018, we have seen the drawdown caused by the market falls.”
However, the downturn in the market will certainly make many short-term speculators return to reality, because they can not simply think that the market is not only high or. In addition, Mati Greenspan also reminded investors should focus on “more predictable long-term returns”, and the encryption currency market may need to wait a long time to see. But he also said that if the market now has changed, it is sure to be a clear call sign. (the first chain to get, the translator from CCN Chaindder)