On February 3, Asian cryptocurrency stocks had a dramatic decline, with Bitcoin falling to $91,163, its lowest level in almost three weeks. The decrease coincided with mounting concerns about trade tensions and economic uncertainty, sparking a larger market sell-off.
For its Bitcoin-focused investment strategy, Metaplanet, often compared to MicroStrategy, saw a 9.44% decline in its stock price on the Tokyo Stock Exchange. SBI Holdings, a major investor in blockchain and digital assets, experienced a 3.60% decrease.
Hong Kong’s cryptocurrency market also suffered. OSL Group, the city’s first legal cryptocurrency exchange operator, dropped 2.69%, while Boyaa, Asia’s largest publicly traded corporate Bitcoin holder, sank 4.64%.
Market analysts attribute the significant drops to growing concerns about an impending trade war. Recent tariffs placed by the United States on imports from Mexico, Canada, and China have caused investor concern, resulting in a sell-off in both traditional and digital markets. According to Justin d’Anethan, head of sales at token advice business Liquifi, investors are reacting to two threats: the impact of trade tensions on traditional markets and the ripple effect on cryptocurrency.
The broader Asian market echoed this anxiety. Japan’s Nikkei 225 index lost 2.66%, while Hong Kong’s Hang Seng index dropped merely 0.04%.
Looking forward, traders predict continued volatility as US futures point to a tough week for global markets. Bitcoin and other digital assets, which are traditionally considered risk assets, continue under pressure as fears of economic upheaval grow.
