Tech Crash Could Drag $BTC Below $50K as the Sell-off Continues

• Experts predict major tech stocks' plunge may cause Bitcoin ($BTC) to fall below $50K, its lowest since February.
• Investors may flee to safe-haven assets like gold and government bonds if the stock sell-off continues to offset potential losses.
• Despite the broader downturn, some tokens, particularly TON ($TON), XRP ($XRP), and Stellar ($XLM), have started showing signs of recovery.

Akshay Nassa said $BTC could drop below $50K if the Magnificent Seven' stocks continue losing value. Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla have lost over $650B in cumulative market capitalizationsince Monday, dragging down both traditional stock and crypto markets.

Does this prediction hold some truth? Let's explore the correlation between stock and crypto markets.

Bitcoin in Danger as Tech Giants Tumble

Nassa highlighted that investors typically flee alternative assets like crypto when major tech stocks fail. This week, the correlation became even more prominent as the Nasdaq, which hosts many tech company stocks, lost over 8% of its index value.

Alvin Kan shares Nassa's opinion, noting that investors will seek low-risk assets if the Magnificent Seven falls further.

Currently, $BTC is 22.81% below its all-time high of $73K, recorded in March. Despite dipping by nearly 11% last week, itrebounded by 4.5% in the last 24 hours, suggesting a cautious recovery. A drop to $50K would translate into an over 32% loss.

Last week, analysts predicted that $BTC would enter a new bullish cycleand reach $190K by 2025, yet the sudden stock market crash casts a shadow of doubt over this optimistic forecast.

The broader community sentiment remains bearish, with a 0.1% 24-hour crypto market cap decline. However, some top tokens soared, namely $TON (+11.6%), $XRP (+18.8%), and $XLM (+9.6%).

Tech Titans Continue to Tumble

Since Monday, the Magnificent Seven stocks experienced substantial losses:

• Apple (-6.46%)
• Microsoft (-5.30%)
• Alphabet (-6.57%)
• Nvidia (-15.89%)
• Meta (-6.20%)
• Tesla (-15.73%)

Of the seven, only Apple and Alphabet saw a minor price increase in the last 24 hours, 1.25% and 0.21%, respectively. Nvidia continues to lose value at the fastest pace, with a 5.08% daily drop.

Other tech giants have also suffered.

One of the world's largest CPU manufacturers, Intel,lost 37.68% since Monday, partially due to the oxidation and voltage issues revealed with its processors.

Intel's competitor, TSMC, also experienced a 4.88% setback.

LSEG suggests the seven largest tech corporations are set to lose over $800B in cumulative stock market value for the session.

Final Thoughts

The recent tech stocks' plunge ignited concerns about Bitcoin's future trajectory. Correlation between traditional and crypto markets is apparent, but is its magnitude sufficient to drag $BTC below $50K? This question is open to debate.

ReferencesClick to expand and view sources

• Bitcoin (CoinMarketCap)
• Cryptocurrency Prices by Market Cap (CoinGecko)
• Magnificent Seven set to shed $800 billion in value (Reuters)
• Magnificent Seven Stocks Slide, Valuations Looking More Interesting' (MorningStar)
• Apple (Nasdaq)
• Microsoft (Nasdaq)
• Alphabet (Nasdaq)
• Amazon (Nasdaq)
• Nvidia (Nasdaq)
• Meta (Nasdaq)
• Tesla (Nasdaq)
• TSMC (MarketWatch)
• Intel (Nasdaq)

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