Bitcoin (BTC) Price Soars 20% in a Week While Apple Stock (AAPL) Looks Set for a Major Selloff
The crypto Christmas has started early as prices shot up in the market for the past week. Bitcoin has seen an $800 dollar spike in price to over $4000 representing a 20% increase during this period.
However, this is a consolation to the massive drop in price the coin faced during 2018, shedding off 80% of its value.
Apple (AAPL) is not in any festive mood as indicated by the death cross has formed on the stock price for the first time since 2015. This indicates an upcoming bearish run on the stock as 2018 continues to disappoint among all FAANG stocks. Apple is the last of the five top tech stocks to show signs of an upcoming selloff this year.
The current state of the technological sector is having a significant effect in Bitcoin’s price as suggested by various analysts. As Fudstrat Co-founder, Tom Lee said,
“As growth stocks, tech, and FAANG come under pressure, it’s going to hurt bitcoin. The downturn in FAANG is hurting those owning bitcoin.”
The Gravitational Fall Of Apple (AAPL) Prices
Apple (AAPL) recorded its lowest prices since February earlier on Friday as news emerged of Apple stopping the production of over 4 million iPhones. This comes after a court order ruled in the favor of Qualcomm who owned the patent.
The district court in Munich, Germany stopped the sale of iPhone 7 and 8 (including their Plus versions) and the iPhone X for infringing on Qualcomm patent.
Trading at $156.83 USD, AAPL has dropped 4% in the past 24 hours after reaching a high of $232 earlier in August. The asset is expected to drop further after the formation of a death cross that shows an upcoming bear run on the market.
After Facebook, Amazon, Nexflix and Google stocks all formed the death cross on its technical charts, Apple has completed the FAANG curse of 2018.
Death Cross: The short-term moving average (MA) crosses below the long term moving average (MA).
Bitcoin (BTC) vs Apple (AAPL)
The year has been rough to the cryptocurrency market as seen by Bitcoin’s drop from highs of $18,000 to a current celebratory price of $4,000 USD. However, it will come as a surprise to many that the coin has performed better than Apple (AAPL) shares in the year.
Technology stocks have had their best year yet, with some reaching record highs. However, after the sharp increase, the tech stocks lost all of their year-to-year gains in 3 months.
“Bitcoin will never go to zero because it is a hedge against falling currencies, inefficient economies and increasingly systemic inequality. Bitcoin represents the currency of a better future for society, and people will always invest in their future.”
A bright future awaits for Bitcoin, which has faced a huge correction during the year after a strong bullish run in 2017. Bitcoin performing better than APPL shows the market is consolidating rather than failing.