Asian crypto-related stocks tumbled on February 3rd as Bitcoin plummeted to $91,163, a three-week low. This decline coincided with escalating global trade tensions and widespread market sell-offs.
Japanese companies with significant Bitcoin holdings were particularly affected. Metaplanet, often likened to MicroStrategy for its Bitcoin treasury strategy, saw its shares fall by 9.44% on the Tokyo Stock Exchange. SBI Holdings, a prominent investor in crypto and blockchain ventures, experienced a 3.60% decline.
In Hong Kong, the downturn also impacted key players in the digital asset space. OSL Group, operator of the city’s first licensed cryptocurrency exchange, dropped 2.69%. Boyaa, recognized as Asia’s largest publicly traded corporate Bitcoin holder, saw its shares fall by 4.64%.
Market analysts attribute the widespread declines to newly implemented U.S. tariffs on goods from Mexico, Canada, and China. These tariffs have fueled anxieties about a potential global trade war, impacting both traditional stock markets and the cryptocurrency sector. Justin d’Anethan, head of sales at Liquifi, highlighted the amplified investor concern affecting both markets.
Broader market indicators reflected the negative sentiment. Japan’s Nikkei 225 index decreased by 2.66%, while Hong Kong’s Hang Seng index experienced a slight dip of 0.04%. U.S. stock futures also signaled a potentially challenging week ahead.
The crypto market downturn coincides with the Lunar New Year trading period, historically associated with positive price movements for Bitcoin. However, the escalating trade tensions threaten to disrupt this long-standing trend. The intensified trade war concerns have triggered a broad sell-off in risk assets, including cryptocurrencies like Bitcoin and Ether.
In conclusion, the sharp decline in Bitcoin’s price, coupled with rising global trade tensions, has significantly impacted Asian crypto stocks. While the Lunar New Year period traditionally favors bullish crypto market trends, the current economic climate presents a significant challenge to this historical pattern. The coming weeks will be crucial in determining whether these anxieties will continue to weigh down the crypto market or if a recovery is on the horizon.
