Asian crypto stocks fall amid overall market decline
Asian crypto stocks plunge as Bitcoin falls to a three-week low.
Asian crypto stocks plummet amid trade war fears and Bitcoin downturn
Asian cryptocurrency stocks took a beating on Feb. 3 as Bitcoin dipped to $91,163, its lowest level in over three weeks, triggering a broad sell-off in altcoins. Major players such as Japan’s Metaplanet and SBI Holdings, along with leading Hong Kong firms, experienced sharp declines amid rising trade war fears and market uncertainty.
Key Takeaways
- Bitcoin and Altcoin Slide: Bitcoin fell as low as $91,163, dragging down Asian crypto stocks and altcoins.
- Notable Declines: Japan’s Metaplanet dropped 9.44%, SBI Holdings sank 3.60%, while Hong Kong’s OSL Group and Boyaa lost 2.69% and 4.64%, respectively.
- Trade War Concerns: Tariff escalations between North America and China are amplifying investor fears, contributing to the sell-off.
- Lunar New Year Window: Despite the traditionally bullish Lunar New Year trading period, trade war risks may jeopardize Bitcoin’s 10-year winning streak during this season.
Market Turbulence in Asia
Asian crypto stocks were hit hard on Feb. 3, as Bitcoin slid to its lowest level in more than three weeks. Japan’s Metaplanet, often compared to MicroStrategy for its aggressive Bitcoin treasury strategy, closed the day down 9.44% on the Tokyo Stock Exchange, while SBI Holdings, a major investor in crypto and blockchain technology, fell 3.60%.
Metaplanet stocks chart. Source: finance.yahoo.com
Similar declines were observed in Hong Kong, with OSL Group losing 2.69% and Boyaa, the largest publicly-traded corporate Bitcoin holder in Asia, dropping 4.64%.
The Impact of Trade Tariffs and Market Sentiment
The steep declines in Asian crypto stocks coincide with escalating trade war fears following US President Donald Trump’s imposition of tariffs on imports from Mexico, Canada, and China. These tariffs have prompted retaliatory measures and added to the volatility in both traditional and crypto markets.
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Justin d’Anethan, head of sales at token launch advisory firm Liquifi, attributed the pronounced market declines to investor fears triggered by the broader impact of these tariffs on risk assets, including cryptocurrencies.
Looking Ahead Amid Lunar New Year Traditions
The crypto market is currently in its Lunar New Year trading window, historically one of the most bullish periods with an 83% success rate. However, the growing apprehension over a potential trade war could disrupt Bitcoin’s decade-long trend of Lunar New Year gains. With US futures tied to major stock indexes showing red signals, investors remain cautious about what the coming week may bring, even as the underlying fundamentals of the crypto market continue to evolve.
Recently we wrote, that Bitcoin price has experienced a sharp decline, shedding 12% from its value over just three days, with a notable 7% drop on Monday, February 3, 2025, during the Asian session.
