Is Nasdaq’s Latest Slip Good for Cryptocurrencies?

2018/4/4 1:36:44

Sylvestre says: “The conclusion I arrived at, by comparing the VIX and Bitcoin and concluding that as the market performs better, so will Bitcoin. So what’s going on here? How can the entire crypto market be up when some of the biggest stocks are down double digits? Fundamentals.”


By Jake Sylvestre for CCN, Apr 4, 2018

 

The Nasdaq continued the fall from its all-time high on March 12, 2018. The Nasdaq is down nearly 10% since the high on a variety of news. The Nasdaq, which tracks tech stocks has suffered under the weight of massive losses in market capitalization by the likes of Facebook, Amazon, and Twitter. The causes, which we’ll analyze below, are two-fold. In typical American fashion, they both revolve around Donald Trump.

 

The first Trump revolving drag on the Nasdaq has been the never-ending controversy over Facebook. Facebook continues to suffer the fall out of the Cambridge Analytica Scandal. Here’s how the story goes:

 

  • Aleksandr Kogan,  a data scientist, develops a Facebook survey app called MyDigitalLife. MyDigitalLife amasses 300,000 users and has access to the data of more than 50 million of those users friends.

 

 

  • The company was then able to use organic Facebook action: likes, shares, and comments to target “persuadable” voters, leading to the election of Donald J. Trump

 

 

In the days since Wylie’s stunning accusations, both Cambridge Analytica and Facebook have both vehemently denied these accusations. Nonetheless the damage has been done: Wylie and Zuckerberg are testifying in front of Congress, and Zuckerberg has been asked(and refused) to appear before Parliament; Cambridge Analytica is being investigated by Nigeria for the role it played in their elections, and Palantir has launched an internal investigation  into its own employees connections to Cambridge Analytica (a sensitive matter in front of a potential IPO).

 

All this chaos has certainly done damage to Facebooks stock. Since the scandal broke, it has dropped more than 15%. The fallout of the scandal has spread beyond Facebook and is being echoed across the social media sector with Twitter following Facebook: the stock is down by 22% (despite not leaking any data). The scandal has, of course, raised broader questions over the sustainability of the business models of the many tech & media giants that appear on the Fortune 500 list and shows no signs of stopping.

 

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https://www.ccn.com/is-nasdaqs-slip-good-for-crypto/

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