The release of several earnings reports on October 25th caused a significant drop in the value of the top seven blue-chip tech firms, known as the “magnificent seven.” This resulted in over $280 billion being wiped from their market caps and raised concerns about a potential tech recession. Alphabet, the parent company of Google, saw the biggest decline, with its share price falling over 9% and $180 billion being wiped from its market cap. This was Google’s worst-performing day since the start of the COVID-19 pandemic. Other tech stocks like Amazon, Nvidia, and Meta also experienced significant drops in their share prices. However, Microsoft was the exception, as its share price rose by 3.1% after reporting better-than-expected growth in its Azure business. The widespread tech selloff led to a five-month low for the S&P 500 index. This has sparked fears of a stock market crash, as reflected in increasing Google searches for the term. In contrast, the cryptocurrency market has been trending upward, particularly with the optimism surrounding potential spot Bitcoin exchange-trade fund approvals in the United States. The market cap of cryptocurrencies increased by 16.3% to reach $1.3 trillion over the past week. Bitcoin, Ether, BNB, and XRP have all seen positive gains within this period. It’s worth noting, however, that the crypto market is not immune to tough macroeconomic conditions, as evidenced by its significant drop when the real gross domestic product of the United States decreased in early 2022. Some analysts speculate whether Bitcoin will decouple from tech stocks and the S&P 500, while others argue that it still behaves like a “tech stock” due to its extreme volatility. Nevertheless, Bitcoin has shown a decoupling from the Nasdaq 100 index, indicating a potential “flight to safety” toward Bitcoin. In the United Kingdom, the Financial Conduct Authority (FCA) has reported numerous breaches of the new crypto marketing rules since their implementation in early October. Firms have failed to provide sufficient risk warnings and information about the risks involved in crypto investments. The FCA has taken action against illegitimate schemes as well as seemingly legitimate businesses, emphasizing the need for authorized firms to take their regulatory obligations seriously. The FCA is also collaborating with various platforms and providers to remove and block banned promotions. The new rules aim to increase consumer protection and apply to all businesses promoting crypto, even those without a UK presence. While implementing these rules may be challenging for businesses, it is believed that they will ultimately contribute to increased adoption and consumer protection in the crypto market.