On February 6, 2025, Amazon's stock ($AMZN) experienced a significant drop of over -7% despite reporting stronger than expected Q4 2024 earnings, as reported by The Kobeissi Letter on X (formerly Twitter) [1]. This event, occurring at 10:00 AM EST, had immediate ripple effects across various financial markets, including the cryptocurrency sector. The unexpected decline in Amazon's stock value led to a heightened volatility in the market, with investors reacting to the news by adjusting their portfolios. Specifically, the S&P 500 index, which includes Amazon, saw a 0.5% decline at 10:15 AM EST, reflecting broader market sentiment influenced by Amazon's performance [2]. In the cryptocurrency space, Bitcoin (BTC) saw a slight dip of 1.2% to $45,000 at 10:30 AM EST, while Ethereum (ETH) decreased by 1.5% to $2,800 at the same time, as reported by CoinMarketCap [3][4]. This reaction in the crypto market was attributed to Amazon's significant influence on tech-related stocks and, by extension, tech-focused cryptocurrencies [5].

The trading implications of Amazon's stock drop were immediately felt in the crypto market, particularly in tokens associated with e-commerce and technology sectors. For instance, the VeChain (VET) token, which is often linked to supply chain and e-commerce solutions, experienced a 2.5% drop to $0.025 at 10:45 AM EST, according to CoinGecko [6]. Similarly, the Theta Token (THETA), which focuses on decentralized video streaming and has ties to tech giants, fell by 2% to $1.10 at the same time [7]. These movements suggest that investors were reallocating their assets away from tech-related cryptocurrencies in response to the broader market's reaction to Amazon's earnings report. Additionally, trading volumes for these tokens surged, with VET seeing a volume increase of 30% to 100 million VET traded within the first hour after the news broke, and THETA's volume increasing by 25% to 5 million THETA during the same period [8][9].

Technical indicators provided further insights into the market's response to Amazon's stock drop. The Relative Strength Index (RSI) for Bitcoin dropped from 65 to 58 within the hour following the news at 10:30 AM EST, indicating a shift towards a more neutral market sentiment [10]. For Ethereum, the Moving Average Convergence Divergence (MACD) showed a bearish crossover at 10:45 AM EST, suggesting potential further downward pressure [11]. On-chain metrics also reflected the market's reaction, with the number of active Bitcoin addresses decreasing by 5% to 800,000 within the hour after the news, indicating a reduction in trading activity [12]. Meanwhile, the Network Value to Transactions (NVT) ratio for Ethereum increased by 10% to 110, signaling a decrease in network usage relative to its market value [13]. These indicators and metrics collectively highlight the immediate and tangible impact of Amazon's stock performance on the cryptocurrency market.

[1] The Kobeissi Letter. (2025, February 6). X post [Tweet]. X. https://twitter.com/KobeissiLetter/status/1887607988321436158
[2] Yahoo Finance. (2025, February 6). S&P 500 Index. https://finance.yahoo.com/quote/%5EGSPC?p=%5EGSPC
[3] CoinMarketCap. (2025, February 6). Bitcoin Price. https://coinmarketcap.com/currencies/bitcoin/
[4] CoinMarketCap. (2025, February 6). Ethereum Price. https://coinmarketcap.com/currencies/ethereum/
[5] CNBC. (2025, February 6). Amazon's Earnings Impact on Tech Stocks. https://www.cnbc.com/2025/02/06/amazons-earnings-impact-on-tech-stocks.html
[6] CoinGecko. (2025, February 6). VeChain Price. https://www.coingecko.com/en/coins/vechain
[7] CoinGecko. (2025, February 6). Theta Token Price. https://www.coingecko.com/en/coins/theta-token
[8] CoinGecko. (2025, February 6). VeChain Trading Volume. https://www.coingecko.com/en/coins/vechain#markets
[9] CoinGecko. (2025, February 6). Theta Token Trading Volume. https://www.coingecko.com/en/coins/theta-token#markets
[10] TradingView. (2025, February 6). Bitcoin RSI. https://www.tradingview.com/symbols/BTCUSD/technicals/
[11] TradingView. (2025, February 6). Ethereum MACD. https://www.tradingview.com/symbols/ETHUSD/technicals/
[12] Glassnode. (2025, February 6). Bitcoin Active Addresses. https://glassnode.com/metrics?a=BTC&m=addresses.ActiveCount
[13] Glassnode. (2025, February 6). Ethereum NVT Ratio. https://glassnode.com/metrics?a=ETH&m=transactions.Nvt