Bitcoin yesterday suffered its worst one-day drop since November
Wall Street continues to throw away all of the good will it built up in July. Stocks are once more in the red across the board, with crypto exchange Coinbase Global Inc (NASDAQ:COIN) and China tech giant Alibaba Group Holding Ltd (NASDAQ:BABA) falling victim to sector headwinds.
COIN Sinks With BTC
COIN is off 1.8% to trade at $74.13, after Bitcoin (BTC) suffered a dramatic overnight drop. BTC suffered its worst one-day drop since November yesterday, with catalysts ranging from tenuous world markets to Elon Musk and SpaceX -- per the Wall Street Journal -- "wrote down the value of bitcoin it owns by a total of $373 million last year and in 2021 and has sold the cryptocurrency."
Coinbase stock is off by 25% in August alone, but remains up 108% in 2023. Keep an eye on the shares' 80-day moving average, a trendline that's containing today's pullback so far.
BABA, China Stocks On Shaky Ground
Alibaba stock, meanwhile, is down 3.8% to trade at $87.17 after real estate giant Evergrande filed for bankruptcy protection in the U.S. Investors are fleeing any U.S.-listed shares of Chinese companies amid another real estate fiasco that points to an ailing economy.
BABA has ceded its year-to-date breakeven level today, and despite a year-over-year deficit of 4%, 13 of the 14 brokerages covering the tech stock rate it a "buy" or better, with zero "sells" on the books.