Bitcoin (BTC) is disassociating itself from the big techs, as the disappointing results have not caused big losses in the price of BTC.
Economic data for the third quarter of 2022 caused heavy losses in some technology stocks, but the BTC/USD pair avoided an on-chain reaction.
Bitcoin holders shrug off Q3 results
The largest cryptocurrency shed around $800 on Oct. 27, or 3.8%, after reaching its highest levels in six weeks.
At press time, Bitcoin was still hovering around $20,200, offering more consolidated trading behavior than a major correction.
The same was not true for tech stocks, which were hit by a dramatic 20% drop in Amazon during after-hours trading as earnings targets were missed. The market capitalization of Amazon Registration the biggest drop in history after the close, with more than USD 230,000 million.
“There is obviously a lot going on in the macro environment, and we will balance our investments to be more agile without compromising our major long-term strategic bets,” CEO Andy Jassy said in the company’s third-quarter earnings report.
Although it is proof of the troubled state of change that tech giants around the world have experienced this year, the fall of Amazon has not sparked copycat moves in cryptocurrency markets.
The same goes for the equally painful results of Meta, whose price fell below $100 to return to 2015 levels this week.
This is a radical change compared to the end of 2021, according to the economist, trader and businessman Alex Krueger, that time marked by sharp price drops, which came hand in hand with the poor results of Netflix.
“Last January Netflix earnings and its subsequent 20% drop caused BTC to drop 20%, ETH 30%. Today Amazon earnings and its subsequent 20% drop caused BTC to drop 2%, ETH 3%”, tweeted on October 28:
“The weak hands have mostly disappeared.”
With this, Netflix is down 50% so far this year and its current price is around $300. The BTC/USD pair is down a further 6%, according to data from Cointelegraph Markets Pro and TradingView.
The correlation has not disappeared
The observation fits into a growing narrative about Bitcoin’s correlation with traditional markets.
The past week has seen no clear moves between BTC and stocks, with the former playing catch-up as stocks cooled. As Cointelegraph previously reported, Bitcoin’s growing correlation with gold is gaining attention once again.
Overall, however, a long-term trend reversal in correlation with the S&P 500, for example, is still far from confirmed.
“Although it is too early to say whether this trend is continuing, it is worth watching,” summarized Mario Nawfal, founder of the Blockchain consultancy IBC Group.
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