Market

Dow Jones Tanked 400 Points, Sell-off in Tech Sector Continues

Published

4 Monaten ago

September 11, 2020

The mega-cap stocks in the tech sector continue with another round of correction after a momentary pause on Wednesday. Investors have started fearing the possibilities of the next big tech bubble while analysts say that this is momentary turbulence with little signs of a deeper slide.

On Thursday, September 10, being boosted mainly by the tech sector, the broader markets entered another major correction with Dow Jones (INDEXDJX: .DJI) dropping over 400 points. The S&P 500 (INDEXSP: .INX) corrected 1.7% while the Nasdaq Composite (INDEXNASDAQ: .IXIC) corrected another 2% on the charts. Each of these three indices has corrected nearly 5-6% over the span of last week.

Thursday’s market crash comes after the indices showed some optimism on Wednesday from the previous Tuesday drop. Clearly, the markets are whimsical at this stage as there’s no clear direction ahead. Arian Vojdani, investment strategist at MV Financial, told CNBC:

“It’s a tricky market. You look up one second and the market’s down. You look down the other second and you’re back up. Investors would be remiss to try and trade on this right now”.

The tech sector continues to pull the markets down as some of the mega-cap companies enter a major correction. On Thursday, Apple Inc (NASDAQ: AAPL) shares corrected another 3.26% while Microsoft Corporation (NASDAQ: MSFT) and Facebook Inc (NASDAQ: FB) corrected over 2% each. The E-commerce giant and Wall Street’s favorite Amazon.com Inc (NASDAQ: AMZN) stock also corrected nearly 3%.

Investors have started taking a more cautious approach towards big-tech companies which have been the favorites for 2020. Analysts are saying that the valuations of the giant tech companies have reached historical-high-levels. Hence, we can expect a healthy correction going forward.

Will Tech Sector Push Dow and Other Indices Lowe?

There’s a massive buzz on Wall Street that we are possibly entering a new tech bubble anytime soon. The tech sector has single-handedly fueled markets after the March 2020 market crash led by the Coronavirus pandemic.

Investors are now having a more cautious sentiment for the tech sector at this stage. However, analysts think that is just some sort of turbulence instead of any deeper slide. Liz Young, the director of market strategy for BNY Investment Management, told CNBC that the market can regain its footprint in some time.

Young believes that some investors have still parked their cash on the sidelines waiting which should provide support for the stocks. “I don’t think we’re in a place now where you have to start selling rallies and taking exposure off the table,” said Young.

On the other hand, the health of the U.S. economy doesn’t look to be in a good shape. The latest data released by the Labor Department showed that the unemployment benefits and claims remained high.

It will be interesting to see that with more job losses in recent time, how does the economy take a turn during Q3 and Q4 of 2020.

Business News, Indices, Market News, News, Stocks

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Market

Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago

Published

30 Minuten ago

Dezember 29, 2020

While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.

In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.

The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.

With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.

Grayscale’s AUM May See More Boost in 2021

While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.

Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.

With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Market

eToro Said to Be in Talks With Goldman About Possible $5B IPO: Report

Published

1 Stunde ago

Dezember 29, 2020

The crypto trading/investment management platform is also considering the possibility of a merger with a special purpose acquisition company.

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Market

Altcoin Rally Dimming Bitcoin’s Shine, Polkadot Gains 34% in One Week

Published

2 Stunden ago

Dezember 29, 2020

Polkadot (DOT) saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value.

Bitcoin bullish run looks to have come to a halt amidst an altcoin rally which has seen relatively lower coins put up impressive performances in the past few weeks. Bitcoin dominance is gradually fading as many experts believe the biggest digital coin is backing down as some top altcoin are showing strong “moves” or signals.

Bitcoin hit an all-time high over the weekend, the third time its price has done so in just over 2 months. The price of the biggest digital coin touched $28,400 on December 27, before a lightning drop took it to $27,000 just hours of that incredible feat.

Bitcoin failed to hold onto the $27,000 mark as its price further dropped to $26,000 a day after and is now testing lower levels centered on $26,000 as immediate support. Reports from crypto exchanges revealed BTC/USD trading at lows of $25,830 during the early hours of December 29.

While Bitcoin has seen red over a couple of days, some altcoins are putting up impressive numbers, giving off signals of a strong altcoin rally. Despite XRP’s current issues, the altcoin market is showing glimpses of its glory days as some digital coins are poised to see major gains over the next couple of weeks. Ethereum (ETH) is at the forefront of the rally, with its price climbing above $700 for the first time since May 2018.

Polkadot (DOT) also saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value. The coin is now the seventh-largest token by market cap. Kusama (KSM), a cousin of Polkadot, also saw its price gain 46% last week, pushing its price from $43.1 to $63. The digital token is currently trading at $56 but experts are adamant a breakout above $65 is possible as the token has rebounded off the 20-day exponential moving average ($50.90)

Speaking on the possibility of a long term altcoin rally, analyst Van de Poppe stated that altcoins are next in line to see greens. He added that the next “impulse wave” on Bitcoin next year should be able to take the market to $40,000 or $50,000, but until then, the possibility of a continuance altcoin rally is very much likely.

Although many factors could be in play with regards to the latest Bitcoin price dip, it’s recent fallout with Ripple’s XRP leads the way. Ripple was hit with a lawsuit from the United States Security and Exchange Commission (SEC) and subsequently suffered drops that left its price in a pit. XRP, the fourth-largest cryptocurrency by market cap, is now trading at $0.20 as news broke that Coinbase, a major US cryptocurrency exchange has decided to suspend its trading from next month.

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Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

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