The financial results of the tech giants are causing Bitcoin to drop!
A series of recent financial reports from major tech companies has sent shockwaves through the markets. These reports, released at the end of the week, have notably affected the price of Bitcoin. Details follow.
Financial results of tech giants
Recent publications of the financial results of major tech companies have highlighted disappointing performances. Intel, for example, reported revenues of $12.83 billion for the second quarter of 2024. This amount is below the estimated $12.95 billion. The percentage of adjusted gross margin stands at 38.7%, compared to an estimate of 43.6%. These results led to a nearly 6% drop in Intel’s stock after the market closed.
Similarly, Amazon also disappointed with net sales of $147.98 billion, narrowly missing the forecasted $148.78 billion. Third-quarter revenue and net sales projections have also been revised downwards. According to analysts, “these revisions indicate potential troubles ahead for Amazon.”
A storm anticipated for Bitcoin
The impact of Intel’s and Amazon’s negative results was quickly felt in the crypto market, particularly on the price of Bitcoin. The price of the crypto asset dropped partly due to the negative financial reports from these tech companies. In reality, subpar company results naturally lead to a drop in stocks. Since BTC often trades like a tech stock, it is also dragged down.
However, recent announcements from Apple, which exceeded expectations, could provide a counterbalance to this downward trend. Indeed, Apple released better-than-expected financial results, which could help stabilize markets in the short term.
Nevertheless, experts advise caution, suggesting increased monitoring of the influence of upcoming financial reports on cryptos. This caution is driven by the necessity to anticipate market movements and adapt strategies accordingly.
The increasingly marked correlation between cryptocurrencies and the performance of tech companies illustrates the growing maturity and integration of these assets into the global economic landscape. For investors, it underscores the importance of not underestimating the impact of financial reports on their crypto portfolios. The coming months could reveal key trends for the sector, offering both challenges and opportunities for market players.
