The aftermath of the tech stock crash sweeps across Asia-Pacific, with South Korean stocks plunging the most. Bitcoin briefly fell below the 60,000 mark, and silver dropped another 10%
The Korea Composite Stock Price Index once plummeted by 5%, leading the decline in Asian stock markets. The Japanese stock market continued its weakness, with the Nikkei 225 index opening down more than 1%, marking the third consecutive trading day of decline. Bitcoin experienced a significant drop during the Asia-Pacific session, falling below $61,000 during the day, and its price has halved compared to the peak in October last year. Over the past 24 hours, more than $2.3 billion in cryptocurrency long positions have been liquidated
The overnight sell-off of technology stocks quickly spread globally, putting pressure on the entire Asia-Pacific market, with risk assets entering a clear "de-leveraging resonance" phase.
Wallstreetcn mentioned that weak employment market data in the U.S. intensified market pessimism, leading to a systematic decline in the U.S. tech sector overnight. On Friday, the Korea Composite Stock Price Index plummeted by as much as 5%, leading the decline in Asian markets.
The Japanese stock market continued its weakness, with the Nikkei 225 index opening down more than 1%, marking its third consecutive trading day of decline. U.S. stock futures saw an expanded decline during trading, with S&P 500 futures down 1% and Nasdaq 100 futures down 1.6%.
The stall of tech stocks quickly ignited a chain reaction in higher-leverage assets. Bitcoin experienced a sharp drop during the Asia-Pacific session, followed by a V-shaped recovery within the day, dipping below $61,000 at one point, with its price halved compared to last October's peak.
(Bitcoin has now dropped 50% from its peak)
As Bitcoin broke below the key psychological level of $70,000 yesterday, forced liquidations significantly amplified volatility, with over $2.3 billion in cryptocurrency long positions liquidated in the past 24 hours.
Deutsche Bank pointed out that the ongoing sell-off indicates that traditional institutional investors are withdrawing, and the narrative of crypto assets as a "safe haven" or "digital gold" is rapidly losing effectiveness. Data from CryptoQuant shows that U.S. Bitcoin ETFs have shifted from net buying to net selling, indicating a substantial reversal in institutional demand.
Wallstreetcn mentioned that under the renewed pressure of margin increases at the Chicago Mercantile Exchange, spot silver continued its downward trend during the Asian session on Friday, with intraday declines exceeding 10%, rebounding after dropping to the $64 level.
This round of collapse perfectly replicates the historical script where silver peaked due to high leverage and volatility facing regulatory "precision strikes." The exchanges' continuous and intensive margin increases sharply raised the holding costs for long positions, ultimately leading to a break in the funding chain and triggering a panic sell-off The spot gold trend is similar, with prices once falling below the $4,700 mark, and then rebounding supported by buying funds, rising more than 2% from the daily low.
(The daily decline in spot gold has narrowed to 0.25%)
