Markets by Trading view

This week’s Trading Trends focus on Crypto

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Every week millions of investors visit TradingView’s platform. This week many of them will have been checking Twitter’s share price, mainly due to the news of Elon Musk’s bid to buy the social media giant. Others will have been keeping their focus on crypto. Many spectators are comparing May 2022 to the crypto winter of 2017/18.

The situation surrounding TerraUSD this week has spooked investors across the world. Reuters reported that the stablecoin lost a third of its value on Tuesday. The coin has dropped further today. The point of a stablecoin is that its pegged to the U.S. dollar. TerraUSD, however, was forced to break its peg. In turn Luna Foundation Guard, the people behind TerraUSD, started to buy bitcoin to support its dollar peg. The knock on effect across the market has been deafening.

The challenges faced by TerraUSD has affected the wider market already. According to TradingView, “CEO Michael Saylor won’t want Bitcoin falling much lower than $30k. It if hits $21k, rumors suggest MicroStrategy will get margin-called.”

The panic about crypto is real and justified. One member of the ‘bitcoin & crypto – United Kingdom’ group on Facebook suggested that he has “never seen such panic – not even after the 17/18 crash.” Let’s hope the President of El Salvador has a plan. Mass protests in the South American country could soon be a real prospect.

What about equities?

Some of the stocks being discussed amongst TradingView users is Disney. DisruptionBanking wrote a story about the company in March, where the company’s approach to China was analysed. Things have progressed and Disney is now facing further problems.

Disney shares are down over 30% since January, however theme parks revenues are increasing. Travel is booming, so increased attendance and more hotel and cruise bookings may mean that things will improve:

Another of the companies we have written about frequently at DisruptionBanking is Coinbase. Last November we explained to our readers why they should consider selling their stock in Coinbase. Things have not improved since our stark warning.

This Tuesday Coinbase stock took a further hit of 20%, dropping over 70% since late March. One of the reasons is that the company’s trading volume is down by 44%. Retail monthly transaction users have also fallen by 20%. Coinbase insist the results are in line with their expectations. But how much longer will investors put up with the slide?

Largest companies by market cap performance this week

TradingView have a very useful function where one can review the performance of the largest companies by market cap. You can view other equities too, but we thought it would be a good exercise for our readers to understand the performance of the largest firms this week.

Apple, Microsoft, Alphabet, Meta, Amazon, Netflix (the FAANGs) and Tesla are all down this week. Tesla has taken the largest dip, dropping by over 15% this week. The FAANGs have only performed slightly better. All these equities have a ‘Sell’ Technical Rating on TradingView’s platform today. In the meantime, pharmaceutical companies Pfizer and Merck are showing some growth, but generally the whole of the market has dropped this week. There is a definitive ‘bearish’ sentiment to markets this week. Let’s hope that next week things improve.

#Coinbase #TerraUSD #Disney #Bitcoin #TradingView #TradingTrends

Author: Andy Samu

Disclaimer:

This Article is most definitely not Financial Advice.

Our readers are reminded that investing in cryptocurrencies or equities can mean that you will lose all your money. Only invest what you can afford and always look before you leap.

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