Tech
Crypto Stocks Fail to Capitalize on Big Tech Rally
Crypto stocks missed the opportunity to rally after the stock market posted huge gains. The US market rallied to record highs in closing gains following a swing in macro factors related to the just-released US employment data. According to the Department of Labor, the US economy gained 206,000 jobs in June, down from May’s figures.
Additionally, the unemployment rate has risen from 4% to 4.1%, with commentators suggesting stronger reasons for interest rate cuts. The announcement of rate cuts by the Federal Reserve is a bullish signal, as more funds will flow to the producer, while the opposite restricts market activity. Crypto stocks would benefit from a rate cut, however, several factors have led to a bearish trend in these assets.
Crypto stocks remain red
A plethora of crypto stocks continue to trade negatively to end the week extending their weekly losses. Coinbase (CURRENCY), the largest digital asset exchange by volume in the United States fell 0.56% to trade at $223. The asset’s weekly numbers are still slightly negative at 0.13% while long-term outflows are at 11%.
Similarly, MicroStrategy (MSTR), saw losses of 1.56% today to fall to $1,281. Portraying the bearish outlook is the asset’s 15% weekly plunge that erases previous gains made in the first quarter of 2024. Bitcoin (
BTC) mining companies also compounded the exits as many traded in line with the underlying business. Marathon Digital (MARA) is trading at $20.17, down 3.86% in the last 24 hours. Monthly figures also point to the downside for the business.
Cryptocurrency free fall stalls stocks
While big tech companies sent the Nasdaq and S&P 500 soaring, crypto stocks failed to replicate their performance. Meta Platforms posted gains of 4% while Tesla garnered inflows of 2% today. Microsoft, Apple, and Alphabet posted positive numbers at market close. Cryptocurrencies fell on falling prices and liquidations among cryptocurrencies. Bitcoin price dropped below $55,000 while altcoins and meme coins saw a similar decline. Spot outflows Bitcoin ETFs also contributed to the bearish sentiment.
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David is a financial news contributor with 4 years of experience in Blockchain and cryptocurrency. He is interested in learning about emerging technologies and has an eye for breaking news. Keeping up to date with trends, David has written in several niches including regulation, partnerships, cryptocurrency, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horseback riding.