Market Recap: Crypto and Tech Jump as Investors Take Advantage of Low Prices
Investors turned back to riskier assets like tech and crypto in an attempt to take advantage of lower entry points
Blockworks exclusive art by Axel Rangel
key takeaways
- Crypto and stocks pushed higher today as investors look to take advantage of down markets
- Tech stocks led the way today as the Nasdaq composite pushed up almost 3.3% later in the day with semiconductor stocks like NVDA and AMD jumping as much as 7%
Tech stocks rip higher
Tech stocks jumped significantly today — a relief to a sector that has been battered since the start of the new year.
In the last month, the Nasdaq 100 index shed over 9% while the QQQ ETF, an exchange-traded fund that tracks major companies in the technology sector, dropped by over 9.5% on the year. Some of the biggest tech losers in the new year include several of Cathie Wood's Ark Invest ETFs. The ARKK innovation ETF has fallen over 22% so far this year.
Investors seemed to take advantage of down markets today, especially within the tech sector. The Nasdaq increased by 3.29% by the end of the day. QQQ saw a jump of 3.2% and ARKK went up almost 9.5%. Semiconductor companies like Nvidia and AMD also saw huge increases with 7.21% and 8.56%, respectively.
[stock_market_widget type="accordion" template="chart" color="#5679FF" assets="^NDX" start_expanded="true" display_currency_symbol="false" api="yf" chart_range="1mo" chart_interval="1d"]
[stock_market_widget type="accordion" template="chart" color="#5679FF" assets="^QQQ,ARKK,NVDA,AMD" start_expanded="false" display_currency_symbol="true" api="yf" chart_range="1mo" chart_interval="1d"]
Crypto jump
Similar to tech stocks, bitcoin, etheruem — and the cryptocurrency industry in general — have experienced a significant drop in the new year. Bitcoin has dropped nearly 20% year-to-date while ether has fallen closer to 30%. The entire market capitalization of the cryptocurrency market has dropped by roughly $520 billion.
Investors turned back to riskier assets like tech and crypto in an attempt to take advantage of lower entry points.
Bitcoin increased by 1.26% by the US market close and increased as much as 2.10% intraday. The more volatile ether rose by 2.95% toward the market close and increased by as much as 2.9% intraday.
Other more volatile altcoins like Solana saw jumps of 7% or more. Investors seem to be looking to increase positions in both tech and cryptocurrency after the intense drops at the start of 2022.
[stock_market_widget type="accordion" template="chart" color="#5679FF" assets="BTC-USD,ETH-USD,SOL-USD" start_expanded="true" display_currency_symbol="true" api="yf" chart_range="1mo" chart_interval="1d"]
Top stories
Story: SEC Approves First National Blockchain-powered Boston Security Token Exchange
- The SEC has given the nod for BSTX to begin providing customers a market and price feed based on blockchain technology.
- The move marks the first time the SEC has granted approval for a national blockchain-enabled securities exchange.
Story: A DAO May Close Up Shop and Liquidate 81 Bored Ape NFTs
- The DAO’s NFT holdings are worth roughly $11.8 million, according to crypto data provider Zapper.
- Bored Ape Yacht Club NFTs currently have a floor price of $309,353 in ether, according to OpenSea.
Story: Bored Ape NFT Holders in Limbo After Steep OpenSea Losses
- An OpenSea spokesperson told Blockworks 130 wallets were refunded, totaling 750 ether or $2,014,905.
- Some victims adorned their avatars with “BrokenSea” and “Lost Ape” shirts.
Story: Bitcoin Network Transaction Volume Surpasses AmEx, Research Shows
- Bitcoin’s transaction volume has increased by 100% annually over the past five years, a new report said.
- Consumer spending has slowed amid rising inflation and new Covid variants.
Earnings season
Major earnings reports are scheduled for tomorrow among crypto-adjacent companies that could have some sway on markets.
Alphabet, which recently revealed that Google would be creating a blockchain unit and making a push into the industry, is set to have its earnings call post-market tomorrow. PayPal made a push into the cryptocurrency industry in the last year with crypto wallet support. Its earnings call is Tuesday after market close. MicroStrategy, a company that has become well-known for its massive bitcoin holdings, will also release earnings after hours on Tuesday.
Going forward
There is still a large amount of uncertainty in the near-term markets. An immense level of confidence has been placed on cryptocurrency, NFTs and the metaverse in a more broad and long-term sense, especially with the number of large brands and companies investing in the space. But fears regarding Covid-19, raging inflation and interest rate changes have increased volatility in the markets. Markets will likely remain this way until more clarity regarding policy changes is announced by the Federal Reserve.
Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.
Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.
The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.
