Bitcoin
Bitcoin and Nvidia fall and shake up the market’s get-rich-quick brigade
(Bloomberg) — Bitcoin and Nvidia Corp. have just reminded investors that the market’s hottest trades are far from one-sided bets.
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The biggest digital asset posted one of its sharpest drops on Monday since the start of the crypto market rally early last year, leaving investors yearning for $60,000 as a technical floor for the token to avoid further pain.
Meanwhile, Nvidia – the poster child of the artificial intelligence revolution – has fallen nearly 7% and lost about $430 billion over the past three sessions. This is the largest three-day loss in value for any company in history.
Over longer periods, both assets still deliver impressive returns. But the turmoil raises the question of whether fissures in the dynamic trading zeitgeist point to a tougher outlook for risk appetite as the prospect of higher interest rates for longer hangs over markets.
“People are realizing now that momentum works both ways,” said Chris Weston, head of research at Pepperstone Group. Bitcoin needs “sentiment to feed the beast” and Nvidia is “an incredibly saturated long position,” he added.
Bitcoin stabilized on Tuesday, rising around 3% to reclaim $61,000. Asian stocks and futures on the tech-heavy Nasdaq 100 index rose. The measures suggest that broader investor sentiment remains resilient, supported by gains in global equities, gold and cryptocurrencies over the past year.
Carol Schleif, deputy chief investment officer at BMO Family Office LLC, highlighted on Bloomberg Radio that an equal-weight version of the S&P 500 rose on Monday as Nvidia struggled. The equal weight gauge eliminates size biases and dilutes the influence of megacap technology.
“We need to expand the market for this to be sustainable,” she said. “We believe fundamentals can support more industries than just technology.”
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