After a strong rally over the week, the crypto market is crashing today once again. The Bitcoin price has fallen by over 2% in the last 24 hours and is trading at $20,309. The crypto market is crashing as Amazon missed the mark on its earnings report. As a result, Amazon’s shares have fallen by 13%. They fell to as much as 21% after missing their fourth-quarter sales prediction by a wide margin.
The crypto altcoins market is also crashing due to the strong impact of the tech stocks crash. Cardano prices have fallen over 5% in the last 24 hours and are trading at $0.3837. Ethereum has fallen more than 3% and is at risk of falling below the $1.5K mark.
Why Is Crypto Crashing Today
The crypto market is crashing as the macroeconomic conditions start to get worse again. US President Joe Biden claimed that the US economy is strong and resilient. The recently released GDP data also affirmed Biden’s stance. The US GDP growth came out to be at 2.6%, which exceeded the expected 2.4%.
However, tech companies paint a different picture of the economy. Recently, Meta missed the mark on the earnings report and fell 20%. Similarly, Amazon also highlighted poor performance in its data. Amazon revealed that sales will rise only by 2% to 8%. Economic uncertainties of inflation and recession have tanked Amazon’s performance and stock.
According to experts, this could be the worst earnings season for tech companies since the Lehman Brothers crash. It could be worse than the recessionary period during the Covid-19 pandemic. Crypto assets show a strong correlation to the general stock market. They show an especially strong correlation to tech stocks and to the tech-oriented NASDAQ. Therefore, due to bad tech earnings, the crypto market is crashing as well.
How Will Crypto Perform In Near Future
Michael van de Poppe, the CEO of Eight Global and major crypto influencer, believes that the crypto market can rally again. He believes that since the GDP Price Index has fallen by 5% in one quarter, CPI and PCE will fall as well. The crypto market can rally as the Fed may pivot due to cooling inflation.