The tone of the markets has changed as we close out 2018.
This evening’s digest looks at a cooling rally in the tech sector, an energy-tech milestone, as well as volatility among hard assets and cryptocurrency.
Transition is the underlying theme of all these events, from megacap stock profit taking to silver’s violent reversal or Bitcoin flashing warning signals.
Investors are now re-evaluating risk, value and position across all markets, as the calendar-driven growth fades. 2026 is fast approaching.
Tests of tech pullbacks at the end-of-year rally
US key indexes stabilized on Tuesday night, after the tech stocks brought down the rally heading towards 2026.
Bulls riding on the seasonal buying at year’s end will be shocked to find that their momentum has slowed down.
The biggest losers were tech mega-caps, which is not surprising given the outsized rises they have seen in recent weeks.
The smart money will likely lock in profits now, before 2026.
The stabilisation of futures markets suggests that traders are not panicking. However, the tech-driven wobble should be watched.
This pullback is a sign of a deeper issue.
Kraken spin-off unlocked energy technology value
Octopus Energy has decided to split off Kraken from its AI-powered software division, which is worth $8.65 billion. This move will finally give the platform space to breath without being constrained by parent company constraints.
D1 Capital Partners led a $1 billion round of funding, which signals a serious appetite among investors for the energy technology business as if it were able to stand alone.
Kraken is already used by 70 million users worldwide and generates $500 million annually in revenue contracted from EDF and E.ON. This proves that it’s worth the weight of gold.
Octopus will retain a 13.7% share and there is a possibility of an IPO mid-202026. This deal is not about breaking ties, but rather about releasing Kraken’s value on the public market.
This spin-off eliminates the conflict of interest concerns which previously hindered clients’ acquisition and opens up a new runway for rapid growth.
Silver’s Wild Finale
The silver price soared by 150%+ in the first half of 2025, reaching a new record high at $80 per ounce. Profit-taking then slowed it down.
White metals’ performance is similar to gold, with more volatility. Prices gapped down by nearly 9% during a volatile session, as CME margin increases forced liquidations.
The demand for solar panels, electric vehicles, and data centres kept prices stable all year. Tight supplies, coupled with a weaker dollar, amplified the gains.
China’s export restrictions added to the heat, but after such an explosive run up late in the calendar year, it was inevitable that the market would revert from its record highs.
Silver has finally proven that it is not only gold’s inferior cousin but also the metal for the transition to green.
Bitcoin: a technical analysis
Bitcoin’s fall from $126.250 to $89,000 doesn’t represent a simple drawdown. It’s actually a warning signal.
Chart is screamingly bearish: pennant, rising wedge and broken Supertrend, which last caused a crash of 70% in early 2022.
The oscillators are in a downward spiral, the RSI is below 50 while PPO has plunged underwater.
Bitcoin’s lows from April are likely to be tested at $74,368.
What is scaring traders the most? The FOMC Minutes that were released late this afternoon could ease expectations of rate cuts or confirm pivots to the hawkish side.
Irony: Institutions bought into the ETF story all year long, while technicals aren’t interested in narrative. If $74,368 is broken, then $70,000 doesn’t represent hype. It’s just the next line of sand.
The post Evening Digest: Tech rally cools down, Kraken spins off, Bitcoin flashes a warning sign may be updated as new developments unfold.
