Wed, June 26, 2024 at 03:09

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some intriguing news about Bitcoin and Nvidia.

  • Both assets recently experienced significant declines.

  • 
• Annie

  • Oh, really?😮 Could you tell me more about what happened?

  
• 

  Kang-hoon

  • Certainly.

  • On Monday, Bitcoin fell more than 8%, dropping below $60,000.

  • Nvidia also saw a 7% decline, which wiped out $430 billion in market capitalization.

• Annie

  • That's a huge drop for both!😲 What caused this decline?

  
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• 

  Kang-hoon

  • The volatility is largely due to concerns over potential rate hikes.

  • Bloomberg noted that the appetite for risky assets could worsen as long as the possibility of a rate hike lingers in the market.

• Annie

  • I see.

  • So, are investors losing confidence in these assets?

  
• 

  Kang-hoon

  • Not entirely.

  • Despite the sharp drops, both Bitcoin and Nvidia rebounded.

  • Bitcoin bounced back above $61,000, up more than 3%, and Nvidia rebounded around 5%.

• Annie

  • That's a relief!😊 Does this mean the market sentiment is still strong?

  
• 

  Kang-hoon

  • Yes, overall investor sentiment remains strong.

  • However, experts like Carol Schleif from BMO Family Office LLC warn that the market needs to expand for sustainability.

• Annie

  • Expand?

  • What does she mean by that?

  
• 

  Kang-hoon

  • She means that the momentum needs to broaden across various industries, not just tech stocks.

  • This expansion is crucial for long-term sustainability.

• Annie

  • Got it.

  • So, do you think this news is good or bad for the market?

  
• 

  Kang-hoon

  • In the short term, I would say it's bad news.

  • The significant drops and the underlying volatility indicate potential instability, especially with the looming threat of rate hikes.

  • 
• Annie

  • That makes sense.

  • Thanks for the detailed explanation, Kang-hoon.

  • This helps a lot with my investment decisions.😊

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • Always here to help.

  • Just remember to stay informed and cautious in these volatile times.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.