The “Magnificent Seven” stocks have seen a sharp decline, threatening to bring more downward pressure on Bitcoin’s price.
The Magnificent Seven, a moniker for some of the top-performing tech stocks such as Nvidia and Microsoft, lost over $650 billion in cumulative market capitalization during regular trading on Aug. 5.
Despite staging a slight recovery since, another potential decline in the top tech stocks could lead to lower Bitcoin BTCUSD prices, according to Akshay Nassa, founder of Chimp exchange. Nassa told Cointelegraph:
“The correlation between stock market performance and cryptocurrency values is well-documented; as major tech stocks falter, investor sentiment generally shifts away from alternative assets, including Bitcoin.”
The correlation between Bitcoin and tech stocks gained even more importance, as the tech-heavy Nasdaq has entered a significant correction, which could spill over into the crypto space, according to Nassa.
