Nasdaq fell 5% this Wednesday against a 3% decline in bitcoin price. Shares of the Target chain of stores fell 25% last Wednesday.
The quarterly results of the essential retail chains Walmart and Target, which presented lower incomes than in previous periods, accentuated this week the fears in the market about how much inflation has impacted the economic sector.
This Wednesday, this uncertainty was highly prominent in the department store area. It expanded its tentacles downward pressure on shares in other vital economy departments, including the bitcoin and digital assets market space.
According to the financial report Seeking Alpha, the first warning sign arrived with Walmart’s quarterly financial results on Tuesday, May 17, which presented a prominent drop in incomes. Despite an increase in sales in the quarter, the fact that the expected earnings per share (EPS) were not optimal led to an 11% fall in Walmart stock last Tuesday, which has continued until this Thursday, 19.
This Wednesday, the publication of the results of Target confirmed the tendency of consumers to focus their investments more on goods like food and reduce the consumption of other services such as television. Both Target’s sales and incomes presented lower rates than estimated.
The impact of the fall in profits was more prominent than in the case of Walmart, as shares of Target fell 25% on Wednesday.
The Nasdaq index, led by the leading technology entities such as Apple, Alphabet (Google), Amazon, and Intel, resulted in the most significant losses this Wednesday, 4.73%, followed by S&P 500 and Dow Jones. This Wednesday, the Bitcoin price crumbled down due to a high correlation, losing at least 2.94%.
This figure is a little more than half of the loss appearing in the Nasdaq index, which establishes a new remarked point in the behavior that this digital asset recently had concerning risk assets. Until now, bitcoin price decadence had been steeper than in stocks.
A coupling of the bitcoin price with the Nasdaq and S&P 500 indices remains on the spot. The cost of bitcoin faced a slight recovery in the last hours and was trading at USD 30,095. This week, bitcoin managed to appreciate 14%, while Nasdaq experienced a slight increase registered at 1%.
According to the closeness of the spot price of bitcoin with its realized price, Glassnode highlights in its recent Week-on-Chain report that the gathering procedure is happening due to traders who consider that bitcoin could get undervalued. The cost would reach a high peak in the long run.
However, the economist and expert Harry Dent highlighted that the world would be at the beginning of a long bearish period. According to Dent, Bitcoin could crumble down to as low as $3,000 before starting a breakout to the $500,000 mark.
By: Jenson Nuñez
