Bitcoin price exceeded $65,450 while Intel shares dropped like a meme coin. Losses are nearing 30%. Intel’s losses, supporting the decline in US markets, represent the fastest drop in 40 years. So why is Bitcoin rising? Will cryptocurrencies increase?
Bitcoin and Intel
The world’s largest and most valuable chip manufacturer, Intel, experienced a nearly 30% loss today. The 5-day loss is exactly 33%. We mentioned that the decline would deepen when the earnings report came in the first minutes of the day. The company announced it would reduce its workforce by 15% and halt dividend payments in the last quarter. Unsurprisingly, Intel shares fell before and after the market opened. Losses are at their highest level in 40 years.
The reason for the decline in Intel shares was not only that the company’s revenues fell short of expectations but also due to the downward revision of expectations for this quarter. In other words, Intel, which is shrinking, halting dividend payments, and seeing reduced earnings, is naturally experiencing a decline. This situation caused INTC shares to drop by 28% to $20.8. The highest level in 54 weeks was $51.28.
So why is Bitcoin rising? There are many reasons for this.
- There is an increasing belief that Iran cannot give a response that will escalate tensions.
- If Iran does not activate its drones again over the weekend or gives a limited response, the fear bubble will deflate further, and we can start Monday with a better market.
- Today’s employment data significantly increased the likelihood of the Fed making a 50bp cut in September. It exceeded 70%.
These are just the price catalysts of the last few hours.
