Electronic commerce and cloud computing giant has lost more than $250 million since hitting the $1 trillion key-achievement in early September.
Let’s clarify the numbers, we are talking about approximately $250B which is more than the total market capitalization of a whole crypto market cap that is currently standing at $203B.
Amazon has now lost about a quarter of a trillion dollars from its high pic.twitter.com/wtPANJ23pp— Joe Weisenthal (@TheStalwart) October 29, 2018
The reason for this is the on-going trade war of the U.S. and China. Tech companies that were normally buying the supplies from China have to deal with increased tariffs for their parts. Apple, Amazon, Alphabet, and stocks of the other tech giants are trading in the red zone.
Prior to this, Amazon reported an increase in net profit in the third quarter to $2.883 billion, compared to $256 million for the same period last year. Securities began to fall after the company presented sales forecast for the holiday season with numbers that did not satisfy market expectations.
Traditional asset investors got affected by the market sell-off, meanwhile, the crypto market turned out to be a more stable investment option. Even the first cryptocurrency - bitcoin, that was criticized for being unpredictable and a highly volatile asset has shown more stability during this period. This a very good example of how decentralized currencies are not affected by international political agendas.
After tumbling more than 6% today, Amazon shares currently stand at $1,538.88, giving the tech giant a $750.58 billion market cap.
Over the last year, since it’s almost $20,000 high, bitcoin has been steadily declining into a more stable zone within the $6,300-$6,500 range. According to the Bitcoin Volatility Index, the 30-day fluctuations of the main cryptocurrency fell to 1.50%. Last time such a value was recorded in early 2017.
However, any person who follows the price of Bitcoin will not need any tools to notice low volatility, however, that’s not the question, but whether low volatility really signals the departure of speculators from the market.
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