Nasdaq loses more than Bitcoin on risk aversion by investors

Results released by regulators in the United States show that Nasdaq lost more than Bitcoin with investors’ risk aversion due to the US government’s inflation policies.

The quarterly results of major retailers Walmart and Target, which posted lower-than-expected earnings, heightened market fears about the impact of inflation on the economy.

As analyst Froilan Fernandez points out, the first warning sign came with Walmart’s quarterly financial results on Tuesday, May 17, which showed a significant drop in profits.

Subsequently, the release of Target’s results confirmed the tendency of consumers to focus more on food, in addition to reducing consumption of products such as televisions and bicycles.

In this context, he pointed out that the trend of online retailers has shown that consumers, as well as investors, are averse to risk items and focusing their money on safe applications for fear of high inflation.

Based on investor aversion, the drop on Nasdaq was larger than seen on Bitcoin

The following table, taken from the Bloomberg Online newsletter, summarizes the losses of the main stock indices and includes other items such as oil and Bitcoin:

Nasdaq x Bitcoin

The analyst showed that the Nasdaq index, led by the main technology companies such as Apple, Alphabet (Google), Amazon and Intel, resulted in the biggest devaluation in the last 5 days, accumulating a low of 4.73%; followed later by the S&P 500 and Dow Jones.

So, even on the downside, the price of Bitcoin, which also dropped 3% over the period, still fared a little better.

“However, when we look at the year 2022 as a whole, so far, the drops in Bitcoin prices have been more pronounced than in equities”, he pondered.

However, economist and analyst Harry Dent points out that this will not continue this way. After all, he believes BTC is going to start falling “for real” now.

According to him, Bitcoin could drop as low as $3,000 before starting a new rally towards the $500,000 mark.

Also Read: Bill Gates Reveals Why He Doesn’t Invest in Cryptocurrencies

Also Read: Nox Bitcoin Will Refund Customers Who Lost Money With UST Collapse

Also Read: Anchor Lost $1 Billion During UST and Luna’s Death Spiral

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