NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

‘Big Tech’ Pullback Explains Why Bitcoin Rally Has Paused in Q3

Yashu Gola
Yashu Gola
4 years ago
3 mins read
apple, netflix, facebook, amazon, google, big tech, faang, bitcoin, btcusd, xbtusd, cryptocurrency, crypto

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

  • Bitcoin rally has paused ahead of the “Big Tech” earnings report next week.
  • Despite logging a massive growth in the second quarter, a veteran analyst sees Apple, Amazon, Alphabet, Microsoft, Facebook, and Netflix at overbought valuations.
  • He expects a minor stock pullback in the Big Tech shares, which makes 18 percent of the US stock market.
  • Meanwhile, Bitcoin’s correlation with the US benchmark S&P 500 could expose it to similar downside risks.

Bitcoin and Big Tech do not concern each other historically, but that is about to change during the July’s earnings session.

The benchmark cryptocurrency is moving at a snail-like speed as it remains stuck inside a $300 trading range. The parameters are pretty low for an asset that typically moves wildly on a day-to-day basis. Its impatient daytraders are therefore jumping the ship to seek opportunities in parabolic crypto assets like LINK, XLM, and others.

bitcoin, btcusd, xbtusd, cryptocurrency, crypto

Bitcoin rangebound between $9,000 and $9,300 for the last two weeks. Source: TradingView.com

Despite blanketed by a long-term bullish narrative that envisions its price at $100,000, Bitcoin is not showing any enthusiasm to make that happen.

The last three months, instead, has seen the cryptocurrency tuning itself to a string of macro narratives, including an escalating COVID pandemic, the central banks’ stimulus policies, and fears of an economic slowdown. That has brought Bitcoin close to acting like a stock market.

And it is, indeed. The cryptocurrency’s short-term correlation with the S&P 500 reached an all-time high last week. Barring few exceptions, it moved hand-in-hand with the US benchmark index, suggesting that its interim market outlook entirely depends on how the US equities will perform.

bitcoin, btcusd, xbtusd, cryptocurrency, crypto

Bitcoin-SPX 1-month realized correlation reaches an all-time high last week. Source: Skew

That is what brings Bitcoin in the proximity of the Big Tech – a make-believe index of technology stocks belonging to top companies like Apple, Alphabet, Facebook, Netflix, and Amazon.

Largest Piece of Pie

Big Tech shares at a $7 trillion valuation cover 23 percent of the S&P 500. Meanwhile, they are also 40 percent of the Nasdaq Composite index. On the whole, the so-called FAANG stocks are 18 percent of the entire US stock market.

A recent Bank of America survey found that US tech and growth stocks received more positive bets than any other sector during the Q2, be it Bitcoin or the lower-risk US government bonds. As a result, their stock rates hit record highs in recent days as investors treated them as a haven during the coronavirus-induced lockdown.

apple, netflix, facebook, amazon, google, big tech, faang

FAANG stocks rally of 2020. Source: TradingView.com

That explains why a tech-heavy Nasdaq Composite outperformed its benchmark S&P 500.

But it appears the tech party is coming to an end as investors grapple with a rising number of infections in the US, followed by another lockdown. The BofA survey pointed the same after the first US states started reversing their reopening plans in the face of COVID threats.

Tech Bubble Burst and Bitcoin

Jefferies Global Equity Strategist Sean Darby earlier this week switched his position on Big Tech from “modestly bullish” to “modestly bearish.” The analyst said that he sees a minor stock pullback as the S&P 500 and the Nasdaq Composite trades based on an old fractal.

Calling the tech stocks overvalued, Mr. Darby cited the ‘Four Horsemen’ scenario of the 1990s. In it, four stocks – Microsoft, Oracle, Dell, and Cisco Systems – were dominating the stock market, adding that FAANG is “making a similar trajectory as previous bubbles.”

The BofA survey also stated that Big Tech is now the “most overcrowded trade,’ something that is running ahead of its true valuations as investors seek haven against low-yielding bonds. That amounts to a correction – big or small.

That brings attention back to Bitcoin. The cryptocurrency is practically trading cluelessly without a strong narrative. But as the Big Tech slumps during the earnings session next week – just as Netflix plunged on Thursday after releasing its financial results – it will bring the S&P 500 and Nasdaq down in unison.

Bitcoin, like a mute follower, risks falling downwards under the same setup.

Tweet123Share196ShareSend
Yashu Gola
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Read more

Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Close

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin price preview July news

Bitcoin July Preview: History Says Don’t Trust The Quiet

Market tactician Daan Crypto Trades (@DaanCrypto) has put a statistical spotlight on Bitcoin’s habit of dozing through June before rewarding...

Jake Simmons 6 hours ago
Bitcoin Price Holds Steady

Bitcoin Price Holds Steady — Bullish Monthly Structure Suggests Rally Continuation

Bitcoin price started trading in a range below the $108,800 zone. BTC is now consolidating and might aim for a...

Aayush Jindal 6 hours ago
XRP

Insane Or Insightful? VC Firm Says XRP Could Reach Nearly $9,000 In Just 5 Years

US regulators and market watchers are eyeing a fresh valuation study that puts XRP on track for a dramatic price...

Christian Encila 8 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin crash

Analyst Calls For Bitcoin Crash As Price Pulls Above $108,000 — Details

Scott Matherson 32 minutes ago

Bitcoin Market Enters Caution Zone Amid Rising Sell-Side Pressure, Analyst Says

Ash Tiwari 4 hours ago
Big Money Buys Ethereum as Retail FOMOs Into Bitcoin, What Happens Next?

Big Money Buys Ethereum as Retail FOMOs Into Bitcoin, What Happens Next?

Samuel Edyme 5 hours ago

Premium Sponsors

Press Releases

  • Bitcoin Eyes $112K on Fed Cut Bets and ETF Frenzy

    5 hours ago
  • 仮想通貨プレセール残り24時間で800万ドル目前 次の100倍銘柄となるか?

    ...

    18 hours ago
  • 1ドル以下で注目される仮想通貨おすすめ、Solana系トークンに割安銘柄あり?

    ...

    18 hours ago
  • Най-добрите криптовалути преди...

    18 hours ago
  • リップルとSECの訴訟終了後に注目すべき新しい仮想通貨プロジェクトとは

    ...

    19 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.