The market's anxieties about the impact of inflation on the economy were heightened this week by the quarterly results of major retail chains, which showed smaller earnings than expected. This uncertainty was mirrored not only in the department store industry, but also in other sectors of the economy, putting downward pressure on stock prices.
This week's publication of Target's quarterly financial results started the rough week for many NADAQ listed. The disappointing numbers reaffirmed the trend of consumers focused on spending on essentials like food, and holding off on things like televisions and bicycles. Target's sales and profitability fell short of expectations, and their stock plunged 25% on Wednesday as a result of the earnings decrease, which was even more severe than Walmart's.
The first warning came with Walmart's quarterly financial statements on Tuesday, which revealed a large dip in profits, triggering a stock price slump that began on Tuesday and has yet to stop.
Walmart began the week at $150/share and is ending it at $118. Target began the week at $220 and is ending it at $152.
The end result (as time of writing) is Bitcoin losing -1.62% this week, and NASDAQ down -3.79%
Bitcoin gets a bounce...
The "realized price" is a well known metric among Bitcoin price analysists, and is calculated by dividing the sum of the values of all coins at the time they were last moved, by the circulating supply. Analysis company Glassnote points out as the 'realized price' approaches, traders buy without hesistation because they believe they can be confident that Bitcoin is undervalused at the moment.
The current realized price is $24,000, but traders haven't allowed it to get that low - $26,513 is the lowest BTC has gone during the current downtrend. "This may be due in part to the general market awareness of its (realized price) existence" said Glassnode.
"BITCOIN CRASHING. Great news" Rich Dad Poor Dad author Robert Kiyosaki tweeted last week, adding "Once I know bottom is in I back up the truck. Crashes are the best times to get rich."
But don't get excited yet...
We do have enough information where I can say with confidence - this is just another standard dip. One of the larger ones, but the kind we've had before. By that I mean, the kind where we go on to set new all time highs when it's all over.
So play it smart from here, because the right moves made now will pay off large than those done in a bull market. You want to ride the trade you make from the bear market, into the bull market.
On that note, if you're newer to crypto and want a simple, low risk way to get those big future payouts. you want to be dollar cost averaging. It's an insanely simple method, and makes it where you don't need to be right about every move you make. Read about it here, or watch a video on it here.
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Author: Ross Davis
Silicon Valley Newsroom
GCP | Breaking Crypto News
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