Stocks and cryptocurrencies have been struggling this whole week, but today we saw a major turn downwards. 

There was red almost everywhere you looked today, just take a look at the map below.

And cryptocurrency wasn’t spared from the carnage either… As I write this, bitcoin is down almost 12% to $37,820 and ethereum is down over 14% to $2,734. 

Looking back at stocks, we hit new 7-month lows in the Nasdaq Composite after it dropped for the fourth day in a row.

Tech stocks have had more than their fair share of trouble lately, struggling to hang onto any kind of meaningful gains.

But I don’t want today’s update to be all doom and gloom, I believe there is a silver lining here… 

Perhaps we’re now moving toward the capitulation we need to see before the market can stabilize. We just have to keep an open mind here and try our best to tune out the noise. 

While tech has been the epicenter of this correction, every sector is vulnerable here. Even crypto hasn’t provided a safe haven in these recent conditions. 

Bitcoin and the broader crypto market as a whole have been acting as a high-sentiment beta assets – this means that they tend to move in tandem with the broader markets and are impacted by the recent negative sentiment. 

Macroeconomic fears and poor tech company earnings are only exaggerating this correlation. 

The sell-off has pushed the overall crypto market cap back below $2 trillion. 

So, where do we go from here? If you look at major market news outlets, you probably see a fair bit of half-baked opinion pieces about what will happen next, but ultimately it’s tough to say. 

The most important thing you can do is pay attention to reactions, most major moves like this are overreactions and don’t stick around too long. So sit tight, take a break from the news and enjoy the weekend, we can always reassess the situation on Monday. 

To a bright future,

Ray Blanco
Chief Technology Expert, Technology Profits Daily
AskRay@StPaulResearch.com