Investing in Stocks, Crypto and Real Estate. Not advice. On tiktok @nyherald

Tech and Crypto Crash on Rate Hikes

stock market
Stock Market Crash

Tech and Bitcoin continued it’s descent on the heels of impending rate hikes. It didn’t help that Goldman Sachs updated their forecast for interest rate hikes to a total of 4 this year. The sell off was wide, with 70% of S&P 500 stocks declining.

Withdrawal of stimulus and a rotation away from tech due to rate hikes was the most likely culprit although tension between Russia and Ukraine did not help matters.

Bitcoin briefly dropped below $40K and ended the day at just over $41K. Similarly, Ethereum dropped below $3K and ended the day just over.

Our take: No end in sight. Wednesday will offer an inflation report which will likely solidify the need for rate hikes and a hot report may validate sentiment around Goldman’s call for a more hawkish stance.