Bitcoin Shows Greater Resilience Than Nasdaq During Tech Sell-Off

Bitcoin recorded a 1.27% decline between October 9 and October 16. During the same period, the Nasdaq-100 index suffered a 5.49% devaluation amid a broad sell-off in the technology sector.

Brokerage data shows that hedge funds reduced their tech positions at the fastest pace since 2016. The semiconductor sector led global sell volumes during the five trading sessions ending October 15.

Net leverage for hedge funds reached its lowest level in a year at 48.6%. The technology sector currently accounts for 23.5% of net allocation in prime brokerage books, remaining in the 90th percentile of the last five years.

Bitcoin ETF flows in the United States showed mixed behavior in recent weeks. After a period of net outflows, October 19 saw inflows of 526.7 million dollars, with the IBIT fund leading the charge.

The sell-off in global stocks, which exceeded the previous year's flow distribution by two standard deviations, impacts risk perception in the markets. This correlation between tech stocks and crypto assets may alter dollar volatility and the demand for reserve assets during periods of instability.