Bitcoin May Drop Below $50K if Magnificent 7 Stocks Suffer Another $500 Billion Loss

Bitcoin May Drop- Bitcoin Risks Falling Under $50K if Magnificent 7 Stocks Face Additional $500 Billion Loss

Bitcoin May Drop– The Magnificent Seven tech stocks have faced a severe decline, which could put additional downward pressure on Bitcoin’s price.

The Magnificent Seven refers to top-performing tech stocks like Nvidia and Microsoft. On August 5, these stocks collectively lost over $650 billion in market capitalization during regular trading.

Although there has been a slight recovery since then, further declines in these major tech stocks could lead to lower Bitcoin prices, according to Akshay Nassa, founder of the Chimp exchange. Nassa told Cointelegraph:

There is a well-documented correlation between stock market performance and cryptocurrency values. As major tech stocks decline, investor sentiment often shifts away from alternative assets like Bitcoin.

The connection between Bitcoin and tech stocks has become even more significant as the tech-heavy Nasdaq index is undergoing a notable correction, which Nassa suggests could impact the cryptocurrency market as well.

Further Decline in Magnificent Seven Could Impact Bitcoin Price, Says Bitget Wallet COO

According to Alvin Kan, COO of Bitget Wallet, while stocks are generally more resilient to market volatility, another drop in the Magnificent Seven tech stocks could negatively impact Bitcoin’s price. Kan also pointed out that other factors affecting Bitcoin and crypto prices include the Bank of Japan’s recent interest rate cut and aggressive ETH selling by market makers like Jump Trading.

Local Bitcoin Bottom May Be Near, Analysts Suggest

Historical chart patterns analyzed by pseudonymous crypto analyst Rekt Capital suggest that Bitcoin may be nearing a local bottom. However, the extent of the current correction largely depends on the inflows from US spot Bitcoin exchange-traded funds (ETFs).

Recent data from Farside Investors shows that US Bitcoin ETFs have experienced three consecutive days of net outflows, with cumulative losses exceeding $148 million on August 6. ETF inflows are crucial for driving cryptocurrency price increases; by February 15, ETFs accounted for about 75% of new investments in Bitcoin, which helped push its price above $50,000.

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