Bitcoin (BTC) is decoupling from big tech as disappointing earnings fail to spark any major BTC price losses.
Economic data for Q3, 2022 saw heavy losses for some tech stocks, but BTC/USD avoided a chain reaction.
Bitcoin hodlers shrug off Q3 tech results
The largest cryptocurrency shed around $800 over Oct. 27, or 3.8%, after hitting its highest levels in six weeks.
At the time of writing, Bitcoin was still around $20,200, offering more consolidatory trading behavior than a major correction.
The same was not true of tech stocks, these led by a dramatic 20% rout in Amazon during out-of-hours trading thanks to missed earnings targets. Amazonโs market capย sealed the biggest such post-close drop in history, at over $230 billion.
โThere is obviously a lot happening in the macroeconomic environment, and weโll balance our investments to be more streamlined without compromising our key long-term, strategic bets,โ CEO Andy Jassy commented in the firmโs Q3 earnings report.
While evidence of the problematic state of flux experienced by tech giants worldwide this year, Amazonโs comedown notably failed to spark copycat moves on crypto markets.
The same is true with similarly painful results from Meta, the stock price of which fell below $100 to return to 2015-levels this week.
This is a sea change from the end of 2021, economist, trader and entrepreneur Alex Krueger believes, that time marked by heavy price declines, which came in step with poor performance at Netflix.
โLast January Netflixโs earnings and its ensuing 20% crash sent $BTC down 20%, $ETH down 30%. Today Amazonโs earnings and its ensuing 20% crash sent $BTC down 2%, $ETH down 3%,โ he tweeted on Oct. 28.
โWeak hands are mostly gone.โ
With that, Netflix is down 50% year-to-date with its current stock price around $300. BTC/USD is down around 6% more, data from Cointelegraph Markets Pro and TradingViewย shows.
Correlation has not gone away
The observation feeds into a growing narrative over Bitcoinโs correlation to traditional markets.
Related:ย A record 55,000 Bitcoin, or over $1.1 billion, was just withdrawn from Binance
The past week has not seen the clear-cut lockstep moves between BTC and equities, with the former playing catch-up as stocks cooled. As Cointelegraph reported, Bitcoinโs growing correlation to gold is now gaining attention once again.
Overall, however, a long-term trend change in correlation with the S&P 500, for example, is still far from being confirmed.
โWhile itโs too early to say if this trend continues, itโs worth watching,โ Mario Nawfal, founder of Blockchain consultancy firm IBC Group, summarized.
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