Bitcoin’s recent declines assume it could be facing a scenario that would drop digital Other Cryptocurrencies a bit more, taking them to a floor near $17,000.
It has been seen how the types of traders making investments in Bitcoin have changed, who are not usually indifferent to investments in NASDAQ. It is why today’s technology actions and their movements are more related to that of cryptocurrencies.
Although there have been ups and downs in the technology sector in the last few months, the accompaniment in the downward trends has been quite similar. However, the NASDAQ assets are backed, allowing us to see the impact digital currencies can have on the financial environment. More information on Bitcoin-Prime trading system
The pattern continues to be fulfilled in both scenarios; users are selling their digital assets and technological actions due to the risk they are experiencing; all this is due to the solid financial measures that are being taken as monetary policies, without leaving aside the geopolitical situation that Ukraine and Russia are going through.
How is the NASDAQ made up?
NASDAQ means National Association of Securities dealers automated Quotation, considered the largest second-tier electronic exchange in the United States.
It includes companies in the field of technology in its various areas, be it electronics, information technology, biotechnology, or telecommunications, to name a few.
This sector of the world economy is listed on a financial index, in which around 5,200 companies are listed. It is considered one of the most volatile within the stock market, where its movements are usually swift and can lead to dramatic increases or decreases.
On the other hand, NASDAQ is the market maker, operating directly with buyers and sellers worldwide to keep financial operations in constant movement. So that is where it is usually compared to Bitcoin since this determines where it goes and where the crypto market is headed at a particular time.
Bitcoin and NASDAQ
Both the traditional and the crypto markets are in constant movement to date. Many of their investors are in a continuous speculative mood regarding what will happen with the downtrend both are experiencing.
During the seven months of 2022, Bitcoin and NASDAQ have been strongly related since, according to the statistical indices that make it easier to visualize and understand market behavior, they have revealed the correlation between the two in the last 40 days has markedly decreased.
It means that, to date, both financial elements are moving in the exact directions, which could deduce that cryptocurrencies are not so far from being a financial tool with a global impact.
It could be considered that this relationship is because both financial instruments are based on technology, which is why the followers and users of both markets are closely linked, not only at an informational level but also in terms of investments.
NASDAQ securities trading system
The NASDAQ trading system is based on operations where people can trade shares in this market in a digitalized and electronic way.
The companies in this financial group are usually state-of-the-art and advanced in the various topics of electronic systems and computer engineering.
The operations carried out in this market generate confidence and security in its investors since they are transparent and regulated by the Government of the United States. The processes that have been carried out there have been carried out for more than 30 years; only in the last decades, the impact of technology on society increased and, therefore, its followers.
Unlike other markets, another point that is usually linked to cryptocurrencies is that the negotiations are not carried out by people destined for this purpose but rather by the buyers and sellers who interact through a secure electronic connection.
These systems are so sophisticated that they usually recognize a purchase-sale transaction at any geographical point in the world in milliseconds.
Conclusion
There are more and more needs satisfied by technology, not only at a personal, professional, or corporate level but also at a financial level, which is quite comfortable for many.
The cryptocurrencies could be going through a consolidation phase since, after the bearish stage they are experiencing, they could change the perspective of many towards the management and adoption of crypto assets as financial instruments.
The relationship of both markets has made more than one doubt that they may be volatile, they also take risks like other stocks, but it represents a market that could change the way of seeing the traditional financial system.
