"We attribute some of today's stock market selloff to the ongoing plunge in bitcoin's price,"
"There has been a strong correlation between it and the price of TQQQ, an ETF that seeks to achieve daily investment results that correspond to three times (3x) the daily performance of the Nasdaq-100 Index."
"It's possible that the rout in bitcoin is forcing some investors to sell stocks that they own,"
Nvidia reported blockbuster earnings that initially triggered a massive market rally, lifting the Dow by about 700 points. The rally retraced and the Dow fell roughly 300 points as investors reacted to lingering AI-bubble concerns and a mixed September jobs report showing strong payroll gains but a rising unemployment rate. Federal Reserve officials pushed a more hawkish tone, casting doubt on an imminent rate cut. Bitcoin plunged more than 30% from recent highs, creating margin pressures and correlated selling in leveraged equity products. Some market participants linked the crypto rout to forced liquidations that pressured stocks.
Read at Fortune
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