Bitcoin has suffered a lot, which is bringing negative signs to the market.

Malicious sales that in the past caused poor growth of businesses, new businesses and PSPCs losing millions of dollars have now occurred in Bitcoin, the world's largest cryptocurrency, more at risk for small traders and brokerage houses. high.

the market is not stable

This year, investor safety in the uncertain economic environment has pushed the S&P 500 up 21%, but the decline in growth from expectations scared the eyes last year. The Fed's hawkish exchange rate and the exchange rate at Omicron reduced the market value of cryptocurrencies by more than 10%, with the market value of newly listed companies valued at $ 50 billion and the same proceeds by 14 billion. %.

Short-term decisions by traders have been tried in the past, but investor attitudes can change without the constant support of big business. The behavioral changes of the big banks in the midst of last week's inflation resulted in a big shift in the risk averse market, with experts taking risk at the fastest in 20 months.

Due to the negative returns, a drop in assets like Bitcoin could lower investor confidence even further. Overall, the funds available to cryptocurrency investors were around $ 250 billion less when the market began to decline on November 26, which could put additional stress on the stock market.

Matt Maley, Trading Expert at Miller Tabak, Inc. said, "A trader will be fired because last week's trading strategy failed. Bull market."

Additionally, if Bitcoin, the world's largest cryptocurrency, continues to trade, the market will face more turbulence. Since the market closed last Friday, Bitcoin has fallen 21% and traded for the week, which once fell to around US $ 42,290, better than its previous high of nearly US $ 69,000 a few years ago. weeks. point towards. At the same time, the open position of Bitcoin futures contracts is still down and profits on some major exchanges have gone bad, meaning short-term holders have paid a price. In the middle of a clearing frenzy.

Bitcoin is a dangerous asset

On the flip side, the fall in the stock markets and cryptocurrencies last week further proves that Bitcoin is still an incomplete hedge against financial institutions.

The Chairman of Mangroup said in a recent report that when the relationship between Bitcoin and real assets is close to zero, whenever the market falls more than 5% in a month in the past ten years, Bitcoin will fall by 86 %, an average of 13% decline.

Maley said, “Bitcoin is considered one of the most important risk-taking / risk-free assets. So this week will be another important warning for the stock.” It is worth the risk, especially if the price of Bitcoin remains low and continues to fall. "

Matthew Tuttle, CEO of Tuttle Capital Management LLC, agrees. He pointed out that although the cryptocurrency bull market prefers to view Bitcoin as a hedge rate hike, it is more profitable.

Tuttle said in an interview. “Real estate sales are not good for the stock market because it is affected by the risk / risk aversion point of view,” Tuttle said in an interview. all thoughts. "

Must cancel sale

The brains of traders have been spinning steadily over the past week, and reputable companies have been hit hard as well.

Casey Wood's "Wood Sister" ARK Innovation ETF fell almost 13% last week, its worst week since February this year. The SPAC index fell 6% over the same period, the worst performance since March. An ETF from investment firm VanEck, which tracks the most popular online companies, also fell almost 9% last week.

High-tech devices had also not been short of sales last week, and among them, Metaplatform (FB.US) fell nearly 8% last week, causing sales of many big products to fall. commercial.

Doug Ramsey, Chief Investment Officer (CIO) of Lutehold Group, said: “Right now the internal metrics that measure retail sales are very onerous. Don't look back next week, I'll be very worried.