U.S. Stocks Under Pressure as Weakness in Tech Sector Drags Market; Bitcoin Dips Below $113,000
Due to the weakness in technology stocks on Wall Street, U.S. stocks faced broad pressure on Tuesday, with Bitcoin also briefly falling below $113,000 and Ethereum plummeting close to the $4,000 mark.
(Background: CryptoQuant Analyst: Bitcoin Returns to $115,000 Level, Futures Cooling! Awaiting Federal Reserve’s Speech on Friday)
(Context: U.S. Policy Proposal: Suggesting Trump Use Tariffs from Other Countries to “Increase Bitcoin Holdings,” Ensure USA is Great)
Cryptocurrency Market Faces Headwinds
The cryptocurrency market encountered headwinds again last night (19th) after the U.S. stock market opened with technology stocks leading the decline. The price of Bitcoin also fell in tandem, dipping below $113,000 around 07:45 this morning, reaching a low of $112,710, before slightly rebounding to $113,326 before press time.
The strong upward momentum of Ethereum also stalled, with the price of ETH briefly falling below $4,100 this morning, currently reported at $4,109.
Technology and Semiconductor Stocks Lead Decline
The sell-off in the U.S. stock market was concentrated in large technology and semiconductor stocks. NVIDIA fell by 3.5%, while AMD and Broadcom dropped by 5.44% and 3.55%, respectively. Palantir, which had been rising, also retracted by 9.3%. Other tech heavyweight stocks faced similar pressure: Tesla fell by 1.75%, Meta retreated by 2.07%, and Netflix dropped by 2.48%.
The U.S. stock market closed mixed on August 19th:
- S&P 500 Index fell 0.59% to 6,411.37 points
- Nasdaq Composite slid 1.46% to 21,314.952 points
- Philadelphia Semiconductor Index dropped 1.81%, closing at 5,671.51 points
- Dow Jones Industrial Average, buoyed by Home Depot, briefly reached historic highs and ended slightly up 0.02% at 44,922.27 points.
Central Bank Annual Meeting Approaches, Rate Cut Expectations Drive Volatility
The global central bank annual meeting will soon take place from August 21 to 23 in Jackson Hole, Wyoming, with Wall Street focusing on Federal Reserve Chair Powell’s remarks. According to the CME FedWatch tool, federal funds futures indicate an 85% probability of a 25 basis point rate cut in the September meeting.
Market participants note that if Powell conveys a more dovish signal, growth stocks may experience a technical rebound; conversely, if he reiterates a “data-dependent” stance and “inflation risks,” technology stocks may continue to adjust, prompting investors to be cautious of risks.
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