While tech stocks are having another bad day, with the Nasdaq Composite Index currently down 3 percent, it’s a double whammy if you’ve also invested in cryptocurrencies (and bad news for all those crypto-beachers in Bali when they wake up). .
Bitcoin fell as much as 5 percent on Monday to around $32,630 and is now 50 percent below its peak reached in November last year. The top 500 digital assets have also collapsed by 50 percent during this period. Cryptocurrencies have since lost $1.6 trillion in market value, reports Scott Chipolina, with rate hikes prompting investors to flee the riskiest corners of global financial markets.
“This is a risk for all asset classes, including crypto,” said Daniel Ives, strategist at Wedbush Securities, who added that there was “nowhere to hide.”
Bitcoin is trading at its lowest since July 2021, but the losses in the broader crypto market are even bigger. An FT Wiltshire gauge that tracks the top five non-bitcoin coins is down nearly 70 percent from its recent high. Once fast-growing coins like Solana, billed as an alternative to the Ethereum network, have quickly lost value.
Listed shares of crypto-exposed companies have also plummeted. MicroStrategy, run by crypto advocate Michael Saylor, is down 55 percent so far this year. Coinbase is down 65 percent in 2022, falling below $100 on Monday for the first time since the New York Stock Exchange went public last April.
The pullback also underscores how closely tied the performance of Bitcoin and other cryptocurrencies is to the US stock market. The correlation between bitcoin and the Nasdaq Composite, a measure that caters to America’s big tech companies, has reached record highs, according to data provider Kaiko.
“Some investors play crypto like a hedge against inflation, but it trades like the Nasdaq’s Siamese twin,” Ives said.
The Internet of (Five) Things
1. US-sanctioned crypto mixing
Crypto is also under pressure from authorities for its use in money laundering. The U.S. Treasury Department on Friday announced action against Blender.io for its role in helping a North Korean-sponsored hacker group launder $20.5 million in “illegal proceeds” from one of the largest crypto heists of all time.
2. Semiconductor manufacturers are still looking good
Tech stocks may fall, but chipmakers continue to post strong results, says Lex. Germany’s Infineon was trending on Monday, reporting a (modest) second-quarter profit increase and raising full-year revenue guidance of €13 billion to €13 billion to €14 billion. Infineon’s specialization in the auto industry — more than two-fifths of its revenue — means the company benefits from a healthy EV and assisted vehicle trade.
3. NSO stonewalls about legality
Israeli spyware company NSO Group has blocked questions about whether it is operating legally, according to consultants acting on behalf of the controversial company’s owners. The Berkeley Research Group has told EU lawmakers that its inquiries about the “legality” of NSOs “were ignored and/or thwarted by the NSO Group’s management team.”
4. Mukesh Ambani is stepping up e-commerce offerings
Investments by Indian tycoon Mukesh Ambani’s Reliance Industries hit a three-year high with 10 deals in the first quarter. Two, valued together at around $330 million, should bolster Reliance Retail’s e-commerce platform, with investments in delivery startup Dunzo and robotics company Addverb, which aims to help Reliance automate its warehouses.
5. Tech Comment: Snapchat’s lessons, Amazon streaming continues
Elaine Moore urges Elon Musk to learn from Snapchat’s changing fortunes. The app now has 100 million more users than Twitter and its customer base is growing faster than Facebook’s. Chloe Cornish writes about the streaming battles for India’s film-loving, price-conscious consumers. At a glamorous corporate event, global media companies appear unfazed by Netflix’s recent humiliation.
Tech week ahead
Tuesday: In the US, the networked fitness company is struggling peloton reports its first quarter amid reports that it intends to sell a 20 percent stake in the company. in japan, Sony and Nintendo announce quarterly results. Elon Musk addresses the FT Future of the Car Summit in London. Register by clicking here.
Wednesday: Walt Disney is expected to see an increase in revenue in the second quarter as it benefits from more subscriptions to its Disney+ streaming service. Rivianthe Amazon-backed electric truck and SUV maker is also expected to report after the market close. Airbnb announces its 2022 product update, which could include improvements suggested by iPhone designer Sir Jony Ive.
Thursday: Japanese technology group SoftBank reports gains, as does Taiwan contract manufacturer Foxconn. The findings will shed light on the extent of the problems in the tech supply chain and whether Covid lockdowns in China will further undermine the situation and hit consumer electronics manufacturers worldwide. Manufacturer of memory chips in the USA micron organizes its investor day.
Friday: An update on Take Private plans is awaited by Toshiba when it reports quarterly results.
Tech Tools – Briiv Air Filter
The £299 Briiv Air Filter is a terrarium with added pizzazz, writes Jamie Waters. A see-through jar filled with a miniature forest of lush lichen, its fan exhaling arctic clean air from reindeer moss, coconut shell fiber and activated charcoal inside. Tests show that it effectively improves the air quality in a 36 m² room in just one hour and has the same air-purifying effect as 3,043 indoor plants.
Source: Crypto News Austria