We all perceive that crypto currency investments, in comparison to equity is much volatile. Lately however, we can notice that technology sector giants have been under a lot of pressure and suffered greatly.
Interesting to point out is that the spread between the 10-day volatility of the NYSE FANG+ Index of global tech stocks, and that of Bitcoin is at a record high, according to data compiled by Bloomberg.
The NYSE® FANG+ Index is an equal-dollar weighted Index designed to represent a segment of the technology and consumer discretionary sectors consisting of highly-traded growth stocks of technology and tech-enabled companies such as Facebook, Apple, Amazon, Netflix, and Alphabet’s Google.
While Bitcoin has been rangebound for months now, the tech behemoths have been front and center of the stock sell-off, with potentially more volatility to come after earnings from Amazon.com Inc. and Google’s Alphabet Inc. disappointed.
How is bitcoin looking?
As we have noticed, bitcoin has been pretty much in the same area for a couple of months now and the descending triangle, which has been formed earlier in the year has yet to be broken.
What can we notice here is that during the last period volumes have been drastically decreasing with the exception of one single day whereby the price increased close to $8,000 during intraday but closed the day still between the triangle range.
I believe that this could be a signal that finally we are now very close to start a new trend in the sector.
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