Bitcoin made some headway last week as it broke out of a consolidation patter and looked well on its way to recouping the July-August losses. But the mood changed early this week and it’s been steady selling, culminating in a 5% loss today.
The drop in bitcoin is something of a red flag for tech stocks ahead of Nvidia earnings. There has been a tight correlation for most of the year between the Nasdaq and BTC, though it’s disconnected this week. Some of that might be related to selling around the Mt. Gox bitcoin but I also worry that it’s been notably quiet around crypto lately as bitcoin has spent six months in a range.
Another worry for crypto is that alt coins have struggled. Ethereum has barely recovered from the early-August rout and is down 3.4% today.
This article was written by Adam Button at www.forexlive.com.
