The cryptocurrency market is still maintaining a market capitalization of above $1 trillion. However, the bullish sentiment that has been registered over the past few weeks seems to be weakening as seen in the over 2% decline that has been seen in the last 24 hours. Nevertheless, the crypto market is fairing better that big tech stocks.

Crypto prices show resilience
Cryptocurrency prices have performed quite well over the past few days. Some of the large coins such as Bitcoin and Ethereum have gained by 6.3% and 16.9% respectively over the past 24 hours. However, the bullish trend seems to be weakening as many cryptocurrencies are trading in the red zone.

Nevertheless, the gains made by the cryptocurrency market over the past few days has led to analysts speculating that the correlation that has existed between crypto and stocks for the most part of this year is fading.

The growing institutional investments in the crypto space has seen Bitcoin trading in tandem with the stock market especially the S&P 500 and NASDAQ indexes. This correlation has been attributed to the performance of Bitcoin in the past few weeks where the Bitcoin volatility index has been an multi-year lows.

If the crypto market can break out of the correlation with stocks, it is likely that Bitcoin could trade higher, as a rise in volatility could trigger significant price swings. However, the macro environment still needs to create a positive sentiment to attract investors into risk assets. A rise in demand for risk assets such as Bitcoin could fuel a rally to $30K.

Big tech stocks slump
Technology companies have continued to struggle amid this year’s bear market, as seen in the earnings reports for some of the companies. The dropping stocks are also causing a strain on the web 3.0 & crypto space.

Meta, one of the largest tech giants in the US, has reported a 24.56% decline in share value, closing its weak fourth-quarter forecast. The company released weak Q3 earnings while speculating that it would continue losing money amid its plans to build the metaverse. The Q3 earnings report has led to analysts downgrading the stock.

On the other hand, Apple stock has also dropped by 3% over the past day. The decline in Apple’s stock is unexpected because unlike Meta, Apple reported healthy Q3 numbers. The tech giant’s revenues came in at $90.15 billion, which as an 8% gain year over year.

Apple’s share dip could be attributed to Amazon’s share performance. Amazon shares have dropped by nearly 15% in after-hours trading after the company announced that the holiday shopping season would be slower than earlier expected. Amazon predicted that it would make net sales of between $140 billion and $148 billion during the fourth quarter.

Amid the notable decline in tech stocks, the US economy recorded a 2.6% annualized growth rate, which was higher that the Dow Jones estimates of 2.3%. The data is positive for market observers expecting inflation to come down, which could result in the Federal Reserve easing interest rate hikes.

If the Fed eases the hikes on interest rates, it could result in a notable gain in risk assets such as cryptocurrencies as well as stocks. Therefore, the policy decisions announced by the Fed in the coming months are definitely something that one needs to watch out for.