NASDAQ Underperforms Other U.S. Indices; Bitcoin Awaits Catalyst

The State Administration of Foreign ExchangeNASDAQ is underperforming compared to the S&P 500 and the Dow Jones Industrial Average. Of course, the US Stock market and the three main indices are strongly correlated. However, the NASDAQ is known to be linked to risk aversion to a greater extent.

This is pressuring the price further, with the Federal Reserve likely remaining restrictive throughout the year. However, many traders are contemplating the right time to buy the discounted price.

NASDAQ 4-hour price chart.

One of the key components for the NASDAQ is Apple (NASDAQ:AAPL), which is looking to launch its new iPhone 14 model next Wednesday. Analysts and investors are known to be specifically interested in the sales figure of the company’s latest product and also how the product is reviewed over the coming weeks.

According to the latest reports, specialists of Wedbush Securities believe that the initial order will be for 90 Million products. In contrast, the company has advised they predict initial sales to be above 240 million.

The company has derived this figure as there are currently this many iPhone users who may upgrade. Also, Apple estimates the increase in the price of a new product by $100 due to the increased cost of production. Investors are also considering if this will affect the product’s demand levels.

Bitcoin - Technical View

Bitcoin has remained relatively stable over the past week after the significant decline experienced in August. The price has more or less remained within a recurring price range with no major lasting trends. Investors are most likely waiting for further price drivers to determine how they wish to position themselves in the cryptocurrency market.Bitcoin price chart.

The fundamental side of the asset remains negative. Over the past week, the total market capitalization, which includes not only Bitcoin, but all cryptos, dropped to $985 Million. This is the fifth consecutive decline in overall market capitalization. Another concern for Bitcoin holders is that the market share of Bitcoin has decreased to 39.05%.

Overall, the price of the Cryptocurrency market seems to be pressured by monetary policy decisions throughout the world’s largest economies as well as the lower risk appetite within the market. The lower risk appetite for the market has also resulted from deteriorating economic conditions and high inflation.

Investors are hoping that upcoming developments will again increase the demand for the cryptocurrency market. For example, the transition of the Ethereum network to the Proof-of-Stake (PoS) algorithm and the release of the important Vasil update of the Cardano network should take place throughout the month.

It is expected that they will be able to raise the price of ETH and ADA, but of course, the whole market is correlated to an extent and may support the price of other cryptocurrencies, such as Bitcoin. However, the release date is not yet 100% certain.

Some cryptocurrency experts believe both projects will not be ready until 2023. In the meantime, analysts believe the price will remain within its current price range. This may benefit some investors looking for a slightly lower level of volatility and more surety. 

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