Bitcoin and crypto flashcrash because of ETF rumor, technology stocks keep dropping

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Last Updated on 4 January 2024 by CryptoTips.eu

Americans and Europeans are quite different, even though both make up ‘the West’ (along with Australia, New Zealand and Canada) and are usually governed in a democratic manner. Yet there are important cultural differences and this is also clear in terms of how they invest.

Europeans are more likely to keep it safe with larger savings accounts and safer investments such as real estate, while Americans like playing the stock market and sometimes want to take a risk on technology stocks or opt to put a large portion of their earnings in crypto.

Many Americans had apparently switched into crypto in recent weeks, especially after tech stocks fell sharply in recent days. The American media already called it the end of the Santa Claus rally, although that may be premature.

However, with the approval for a Bitcoin ETF being delayed again yesterday (some claim it was a rumor from a Matrixport intern), the crypto market experienced a minor flash crash. New investors were not really used to this, and so you quickly noticed a lot of frustration bubbling up on social media.

Advertentie.

Profit warning

Some technology stock choices also appear to be in need of a change. Since December 29, several well-known names have already lost more than 10%.

The last time this happened was at the end of October, after a profit warning from Alphabet (Google’s parent company).

In recent days, it was mainly Apple and the chipmakers who had to take heavy losses. And now the crypto market takes a hit as well. The next few days will show whether it was indeed a rumor or not. In any case, a new reminder that profit and loss in crypto are sometimes close together.

All in all, a very interesting start to the new year.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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