Wall Street dey wonder if Bitcoin be di reason why stock market turn anyhow dis week. E start well well afta Nvidia drop strong earnings, wey make people no fear AI bubble again. Dow Jones shoot up 700 points, collect back small ground wey e lose before because of AI. Walmart too drop sweet results wey ginger market.
Market Turn Yakata
But market just change mouth suddenly, Dow lose 300 points. Wall Street dey scratch head dey wonder wetin happen. Some people dey talk say na because dem still dey fear AI go bust, some say na because September jobs report show say jobs dey, but unemployment rate climb reach di highest level in four years.
Federal Reserve Dey Vex
Federal Reserve policymakers dey sound like dem dey vex, wey make am be like dem no go cut interest rate next month. Market veteran Ed Yardeni talk say all dis things plus di way Bitcoin dey fall hand dey cause wahala.
“We dey blame some of di stock market selloff on top di way Bitcoin price dey fall,” e write. “Strong connection dey between am and di price of TQQQ, ETF wey dey try make money three times (3x) di way Nasdaq-100 Index dey perform every day.”
GENIUS Act Dey Blame?
Yardeni say na GENIUS Act cause Bitcoin to dey fall, wey dem sign on July 18. E say di rules wey dem make for stablecoins don remove Bitcoin from di money system. “E fit be say di way Bitcoin dey fall dey force some investors to sell stocks wey dem get,” e add.
Bitcoin don fall pass 30% from di time wey e dey shine, wey make am be di worst fall since 2022. Traders wey use borrow money to bet on crypto go need to sell dem position if dem no fit pay back di money.
Crypto Market Dey Suffer
Crypto market dey suffer bad bad dis month, lose pass $1 trillion in recent weeks. Bitcoin don drop to di lowest level since April and e dey look like e go be di worst month since 2022. E don fall pass 33% from di time wey e high pass, wey make am enter bear market territory.
Plenty things dey cause crypto to dey fall, analysts say. Cryptocurrency dey follow riskier growth stocks like AI and technology, wey dem too dey suffer because of valuation worries and economy wey no dey stable.
Global interest rate wahala and di way corporate digital asset treasuries and big crypto holders dey move to cash dey weigh crypto down too.