Tech
Ether suffers biggest drop in three months
What’s going on here?
Ether, the second largest in the world cryptocurrencyfell 6% yesterday, the biggest drop in three months.
What does this mean?
After hitting a low of 7%, ether settled at $3,170 just as the launch of the first U.S. exchange-traded funds (ETFs) tracking the cryptocurrency failed to generate gains. Bitcoin was no slouch either, sliding 3% to $63,930. A simultaneous slide in tech stocks exacerbated the slide in cryptocurrency values, with the Nasdaq falling nearly 4%, its worst performance since 2022. Poor earnings from big names like Alphabet and Tesla soured investor sentiment across the board.
Why should I care?
For markets: A ripple effect on the market.
The market-wide sell-off hasn’t just hit cryptocurrencies, with tech-focused stocks like Coinbase falling 2.3% in pre-market trading, while mining firms Riot Platforms and Marathon Digital saw declines of between 3.4% and 4%. European market woes compounded the impact, with stocks down 1.4% in early trading. Investors should keep an eye on tech and cryptocurrencies, as they appear to be intertwined in this broader sell-off.
The bigger picture: Macroeconomic changes are driving the course.
Cryptocurrencies remain sensitive to global economic trends, not just sector-specific news like ether ETFs. With tech stocks in free fall and investor sentiment shaken by disappointing earnings and macroeconomic concerns, it’s clear that broader economic forces are at play. This highlights a crucial point for investors: staying informed about macro trends is essential to navigating the volatile waters of cryptocurrency and technology.