Crypto-linked stocks are taking the biggest hit. Coinbase. Strategy Inc. (formerly MicroStrategy). Marathon Digital. Riot Platforms. Strategy Inc.’s 597,000-coin stake practically makes the stock a levered Bitcoin tracker.
But it’s bigger than direct exposure. When risk appetite cools, high-growth tech is the first thing investors lighten up on.
November’s Chop Is Still In Play
The major indexes are coming off a rebound week:
• S&P 500: +3.7%
• Nasdaq Composite: +4.9%
• Dow: +3.2%
But November wasn’t smooth. The Nasdaq finished down 1.5% and was nearly 8% below the October close at one point. AI name valuations stayed under pressure, and uncertainty over a potential December rate cut kept buyers selective.
Bottom line: investors are willing to buy dips — just not blindly.
What Traders Are Watching Next
Bitcoin now acts like a high-octane read-out of tech-sector sentiment. If crypto stabilizes and buyers return, tech can snap back quickly. If Bitcoin continues to slide, expect volatility to pick up across Nasdaq-heavy growth names.
Seasonality is helping the bull case — December typically posts gains, with the S&P 500 averaging more than +1% going back to 1950. Mark Newton at Fundstrat says momentum is improving after last week’s breadth reset.
But until Bitcoin calms down or the correlation breaks, tech traders have no choice but to follow every move in crypto.
More Information in our Economic Calendar.