Crypto prices plunge as tech stocks suffer yet more losses
By Liam Sheasby, News Editor
21 Nov 2018
Sell-Off in global markets continue due to an ongoing implosion of tech. Tech's popular FAANG stocks have lost more >$1tn. Will this become a Dot com crash 2.0? https://t.co/9gL2VX1BuE via @welt pic.twitter.com/KNHXLECsI9— Holger Zschaepitz (@Schuldensuehner) November 20, 2018
The US stock markets saw significant losses on Monday and Tuesday across the Dow Jones, Nasdaq, and S&P 500 as tech firms – particularly Apple, down -4.5% – experienced difficulties in the face of trade disruptions between the US, China, and neighbouring nations.
The markets closed low on Monday before continuing their losses yesterday. By the end of Tuesday’s trading the Dow Jones industrial average was down by 555 points, which equates to 2.2%. The S&P 500, a larger spread of firms, was down by 1.8%, while the tech-heavy Nasdaq was down 117 points (1.67%).
Journalists, as pointed out below, worked out that at the lowest point yesterday the value lost since the FAANG highs worked out at 1 trillion Dollars, with many arguing that tech stocks are more and more commonly hitting a price ceiling before correcting – corrections that many would argue are precursors for a big tech stock crash like that of the Dot Com Bubble in 2000.
Dow now dropping 622.....I didn't do the math but CNBC did, and the FAANGs have now given up one trillion in market cap from their respective 52-week highs.— Jason Brooks (@brookskcbsradio) November 20, 2018
The US markets have begun to show slight signs of recovery today, but with Thanksgiving beginning tomorrow the full extent of the losses as part of the bigger picture of market trends won’t be fully established until next Monday at the earliest.
Below you can see an interview by CNN Business with JPMorgan’s David Kelly, Chief Global Strategist, who believes this IS a correction and the rapid price rises and falls are reflecting stock interest and demand.
Chief Global Strategist for JPMorgan Funds David Kelly explains why current market turmoil is a normal correction, not a bear market, and why he doesn't expect a recession anytime soon https://t.co/vuWhvnq7jX pic.twitter.com/XagvSWgF6Z— CNN Business (@CNNBusiness) November 20, 2018
Major cryptocurrencies such as Bitcoin, Ethereum, Stellar, and Litecoin have all registered huge losses in the past week as well, coinciding with these huge stock market losses.
In the last seven days, Bitcoin has lost over 27% of its price, while Bitcoin Cash has lost 51.48% value. Ethereum is down by nearly 33%, while Stellar is down just under 19% and Litecoin just under 31%.
Market analysts cite the pressure of regulation as threatened by the US Securities and Exchange Commission (SEC) who warned the cryptocurrency industry that it has the ultimate control over assets that class as securities and will punish those companies and investors who don’t abide by the rules and declare their securities correctly – especially in instance of launching ICOs.