Shock to Crypto Daredevils Joins List of Scary Market Omens
- Retail absence is unwelcome development for the bulls: Maley
- Cryptocurrency selloff not a good thing for equities: Tuttle
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A brutal bout of selling that wiped billions of dollars from profitless growth companies, IPO stocks and SPACs has now caught up with Bitcoin, further stressing risk tolerances and brokerage balances among small-time traders.
Retail dip-buyers, whose willingness to stand firm amid turmoil has helped power the S&P 500 to a 21% gain in 2021, are nursing some of their worst wounds of the year as losses pile up in speculative corners. A hawkish turn from the Federal Reserve and the omicron variant have erased more than 10% off the market value of cryptocurrencies, $50 billion from newly public companies and 14% from a basket of meme stocks.