FAANG stocks lose more than $ 1 trillion – More than all combined cryptocurrencies


The shares of Facebook, Amazon, Apple, Netflix and Google have lost more than $ 1 trillion of market capitalization from their historical highs, marking an even greater loss of the dollar value of all the cryptocurrencies combined in 2018.

FAANGs bite

Bitcoin and cryptocurrencies, in particular, are not the only bubble in the city.

The actions of technology advocates like Google, Amazon and Facebook, collectively known as FAANG, have lost more than $ 1 trillion dollars in market capitalization from their all-time highs.

Comparatively, despite a nightmare for cryptocurrencies, the total capitalization of cryptocurrency declines by about $ 700 billion from its historical maximum of $ 830 billion in January 2017.

total market capitalization

Among the FAANG, Netflix (NFLX) was the worst, with a decrease of -34.8% for the year (to December 13), followed closely by Facebook to -33.7%, according to data from Investopedia.

Apple Inc. (AAPL) did not go much better than the disappointing iPhone sales, down 26.8% from its record price and nearly -14% just in the last month.

Amazon.com Inc. (AMZN) also fell by a considerable 19.1% with the parent company of Google Alphabet Inc. (GOOGL), immediately behind with a -16.9% drop.

The rush to record high ratings for FAANG shares has been an impressive bullish period, which seems to have peaked in July 2018. Interestingly, this month was also the last time that Bitcoin (BTC) saw the prices over $ 8,000.

But while the narrative of "Bitcoin is dead" seems to be very exaggerated, according to a recent study by the University of Cambridge, the "bubble" of the cryptocurrency is certainly still relatively more serious than the FAANG "with a decrease of 85 %.

Everything is boiling

For example, the S & P 500 and the Nasdaq 100, for example, fell by 9.9% and -12.1%, respectively, compared to their highs compared to the FAANG. In fact, the recent stock route was driven by the once-incandescent FAANG, as technology-oriented ETFs have seen "massive outflows" in November, reports Bloomberg.

"The conditions that have allowed this type of high growth to outperform have changed, if not even reversed," says David Lafferty, chief market strategist at Natixis Advisors. "I simply do not see much on the upside."

Similar conditions may have also allowed this exuberance to fall back into the nascent cryptocurrency sector at the start of this year. Both Wall Street and retail investors have begun to purchase high-risk, high-paying-in casinos and new ICOs in the world, pushing the price to record levels by the end of 2017.

At that time, the recently launched Bitcoin futures marked the entrance of Bitcoin into traditional finance, increasing the price of Bitcoin to new levels. Today, BTC price 00 it is about 85% down from its historical high of nearly $ 20,000.

Adoption of Bitcoin "Guided by bank failures"

Unfortunately for both stocks and cryptocurrency, Lafferty does not see much hope in the short term, as the central bank's policy has shaken many investors.

"The Fed's grip is coming where it's starting to hurt," he says. "GDP is expected to slow down in 2019, which will lead to a natural decline in earnings growth, which means for multiples and investor sentiment is in the air."

Paris protests buy bitcoins

Elsewhere, protests throughout France and the slowest global economic growth may be a sign of a looming financial crisis, which in 2008 generated Bitcoin as a decentralized and apolitical alternative to the existing financial system.

In other words, do not be surprised to see a divergence between Bitcoin and the performance of the stock market in the future.

The former investor and Wall Street market analyst Max Keizer has recently declared Bitcoinist that Bitcoin was, in fact, designed to thrive in times of economic turbulence. He explained:

The adoption of bitcoins has always been driven by bank failures, rescues, bail-ins and political unrest. The problem that Bitcoin has had recently is its competitor, the US dollar, is on the rise.

Ten years after his birth, it will be interesting to see if Bitcoin – which is not a shared stock or a company but a digital protocol for the transfer of value – can eventually break away from traditional markets and provide shelter during the next cycle.

The head of research at Fundstrat Global Advisors, Tom Lee, has recently defined BTC as undervalued, as its fundamentals are as strong as ever.

"The fair value of Bitcoin, given the number of active portfolio addresses, the use of accounts and the factors influencing the offer, is between $ 13,800 and $ 14,800," said Lee.

In the macroeconomic environment, Lee believes that the sales of first coin supply (ICO) securities are the reasons for the lower price.

Therefore, the market correction could actually turn out to be healthy for Bitcoin, the safest blockchain in the world, as unprofitable businesses and low-quality projects fall into ruin, leaving only the cream of the crop for the next upward run.

Can bitcoins prosper in the next financial crisis? Will the FAANG titles be surpassed in the near future? Share your thoughts below!

Images courtesy of Shutterstock, coinmarketcap.com, thetechnicals.com

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