Shares from Tech Companies are Pushing the Stock Market Down and It is Impacting Bitcoin Price

Stocks sank for a third day due to concerns that valuations have reached extreme levels.

Investors are watching closely how tech stocks react this week after last week’s sale, which was fuelled by concerns on the valuation and reports that huge options positions were created for speculative purposes.

The relationship between the U.S. and China is also back in focus after President Donald Trump said he plans to end America’s dependence on the country. Trump also threatened to punish any American companies that create jobs abroad and ban those doing business in China from winning federal contracts.

Stocks Correlation to Bitcoin

This week, research firm Glassnode released an article on bitcoin and warned of a down trend in price.

Despite the bad news for the price, Bitcoin continues for the 15th straight week with positive onchain fundamentals, with an increase in liquidity by 14 points and a drop in investor confidence.

“Bitcoin has shown a consistent correlation with traditional financial markets as it matures as an asset, and the downward performance of S&P – and the stock market in general – threatens to bring down BTC and other crypto as investors deviate from the risk and make their crypto assets liquid” said the analytics company.

The company recommends keeping an eye on the financial market as a supplement to onchain fundamentals to understand Bitcoin and cryptocurrency trends in general.