Chip stocks fall for a fourth straight day; Nasdaq breaks down first
U.S. stocks opened with the Nasdaq down 1.29%. SK Hynix and SanDisk each fell 6%, Micron dropped 3.9%, Western Digital slid more than 5%, and Nvidia fell more than 3%. Chip stocks opened lower for the fourth trading day this week.
High-beta tokens tied to the computing-power narrative are the first to buckle. Leveraged long positions are crowded in these assets, and liquidation levels are close to current prices, so a pullback can trigger cascading liquidations and cause losses far greater than those in the broader market. Spot buying is still providing support, which should narrow the declines. But four straight breakdowns in the Nasdaq suggest institutions are actively reducing risk exposure. A short-term retest of the previous daily-chart low is the most likely path, and any rebound will have to wait for Nvidia to stop falling first. If the exchange rate continues to weaken, that will confirm capital outflows, and altcoins will fall even harder.
For those holding computing-power tokens, what’s your cost basis—and would you dare to buy here, below the liquidation cluster?
$TAO $BTC $ETH
U.S. stocks opened with the Nasdaq down 1.29%. SK Hynix and SanDisk each fell 6%, Micron dropped 3.9%, Western Digital slid more than 5%, and Nvidia fell more than 3%. Chip stocks opened lower for the fourth trading day this week.
High-beta tokens tied to the computing-power narrative are the first to buckle. Leveraged long positions are crowded in these assets, and liquidation levels are close to current prices, so a pullback can trigger cascading liquidations and cause losses far greater than those in the broader market. Spot buying is still providing support, which should narrow the declines. But four straight breakdowns in the Nasdaq suggest institutions are actively reducing risk exposure. A short-term retest of the previous daily-chart low is the most likely path, and any rebound will have to wait for Nvidia to stop falling first. If the exchange rate continues to weaken, that will confirm capital outflows, and altcoins will fall even harder.
For those holding computing-power tokens, what’s your cost basis—and would you dare to buy here, below the liquidation cluster?
$TAO $BTC $ETH