The correlation between bitcoin and tech stocks, especially chip manufacturers, is noteworthy at the moment. It appears that link has to do with the use of chips for bitcoin mining or global investment funds viewing these assets as high-risk, potentially high-return opportunities.
Last month, the correlation between bitcoin and these tech stocks rose to 80 percent over a 40-day period.
Bad start to April
Now bitcoiners may need to beware, as Nvidia’s shares fell 6.2 percent from early April and AMD’s fell 7.5 percent.
Investors are starting to worry about Nvidia’s profits, which appear to be somewhat disappointing. Microsoft ordered fewer chips and it is currently more difficult to purchase new chips from Nvidia.
Furthermore, AMD’s strong position in cloud computing is also slowly starting to pose a threat to Nvidia.
It is certainly not the case that the bears are currently in control of the bitcoin price, but the bulls are also struggling to regain momentum.
At the time of writing, the bitcoin price is clocking in at $69,350 and a decline of 2.38 percent is expected in the past 24 hours.
Pressure on the bitcoin price
In addition, the inflation figures published in America today also seem to cause some uncertainty and downward pressure.
If inflation is also higher than expected in March, there is a chance that the US central bank will apply the brakes even more when it comes to lowering interest rates.
In theory, that could be disastrous for Bitcoin’s coming months. In the longer term, this does not necessarily have to be a problem.
Why not?
Because the high interest rates also mean that the American government is losing more and more money on its gigantic debt mountain, which in theory means that more dollars have to be created and that is positive for the bitcoin price.
Source: https://bitcoinmagazine.nl/nieuws/tech-aandelen-beinvloeden-de-bitcoin-koers
