"Stock selloff resumes, bitcoin nears USD 30k

[FXMAG]

Risk aversion sends Wall Street lower

Wall Street remains uninspired to ‘buy the dip’ as inflation seems poised to remain stubbornly high, which will force the Fed to tighten policy to levels that will jeopardize the soft landing most traders were expecting. ​ No one can confidently answer the question of when stocks will hit the bottom, but if the options market is the primary focal point for many traders, that could suggest downward pressure on stocks could last a while longer.

Too many investors are in risk-off mode and targeting a deep bear market for tech stocks. The problem for tech stocks is that a lot of companies will struggle with rising costs as they pay their employees with equity. ​

Stocks extended declines after the NY Fed survey showed longer-term inflation expectations jumped, prompting fears of weaker growth that likely lead to a recession. The inflation expectations for three years from now increased from 3.7% to 3.9%. ​ The one-year inflation expectation fell from 6.6% to 6.3%. ​ ​

Bitcoin

Bitcoin is breaking below some key technical levels as the never-ending selloff on Wall Street continues. ​ The institutional investor is paying close attention to bitcoin as many who got in last year are now losing money on their investment. ​ If the USD 30,000 level breaks, that could trigger a flash crash environment if several whales unload.

https://www.fxmag.com/stock-markets/stock-selloff-resumes-bitcoin-n...