Dogecoin, Cardano Weigh on Crypto Majors After US Tech Stocks Plunge
Crypto majors slid in the past 24 hours following a plunge in US technology stocks as key companies reported lower-than-expected earnings. Bitcoin has previously followed the movement in technology stocks.
The equities drop came even after an unexpectedly strong GDP report in the U.S., with economic growth expanding 2.6% in the third quarter versus expectations for 2.4% growth, as reported. Tech-focused Nasdaq 100 finished 1.63% lower on Thursday, while S&P 500 fell 0.61%.
Dogecoin (DOGE) sunk 7.7% in the past 24 hours following a two-day rise as Elon Musk neared his takeover of microblogging service Twitter (TWTR). Musk has been a major supporter of DOGE, which has become a proxy for sentiment about him. The entrepreneur's statements about the token have also consistently influenced its price.
Cardano (ADA) led a decline in crypto majors, falling 6%. Ether (ETH) and bitcoin (BTC) fell 2% each while Polygon (MATIC) and Solana (SOL) fell a tamer 3%. BNB Chain’s BNB token showed nominal losses as crypto Binance – which issued BNB and supports development on the BNB Chain – confirmed its equity investment in Musk’s Twitter.
Crypto-tracked futures racked up just $97 million in liquidations, a lower-than-usual figure that suggested the declines were mostly spot driven.
Weak third-quarter results from Microsoft (MSFT) and Google parent Alphabet (GOOGL) weighed on U.S. markets on Wednesday. The companies reported a slowdown in revenue-generating units. On Thursday, shares of Amazon (AMZN) fell some 13% and warned of a slower-than-expected Christmas period amid cautious consumer spending. Operating income at Amazon decreased to $2.5 billion in the quarter, compared to $4.9 billion in the same period in 2021.
Overall, shares in Alphabet, Apple (AAPL), Amazon, Meta (FB) and Microsoft have dropped by around $850 billion since Monday, as per reports.