The aftermath of the collapse of technology stocks swept through the Asia-Pacific, with Korean stocks plunging and leading the decline. Bitcoin once fell below the 60,000 mark, and silver fell another 10%.

# Source: Wall Street Insights

# By Bao Yilong

The Korea Composite Stock Price Index plummeted by as much as 5%, leading the decline across Asian stock markets. Japanese equities extended their weakness, with the Nikkei 225 opening more than 1% lower and falling for the third consecutive trading day. Bitcoin saw a sharp crash during the Asian trading session before staging a V-shaped rebound intraday; it broke below the $61,000 mark in trading, and its price has halved from the peak hit last October. Over $2.3 billion in cryptocurrency long positions have been liquidated in the past 24 hours.

The sell-off in tech stocks overnight has quickly spread globally, weighing on the entire Asia-Pacific market and pushing risky assets into a clear phase of **deleveraging resonance**.

As noted by Wall Street Insights, weak US labor market data has amplified market pessimism, triggering a systemic sell-off in the US tech sector overnight. On Friday, the Korea Composite Stock Price Index tumbled by up to 5%, leading the declines in Asian stock markets.

Japanese stocks continued to trade weakly, with the Nikkei 225 opening over 1% lower and declining for the third straight session. US stock futures extended their losses in trading, with S&P 500 futures now down 1% and Nasdaq 100 futures falling 1.6%.

The slump in tech stocks has quickly ignited a chain reaction across higher-leveraged assets. Bitcoin crashed sharply in the Asian session, then staged a V-shaped recovery intraday, breaking below $61,000 in trading; its price has halved from the October peak.

(Bitcoin has now fallen 50% from its all-time high)

After Bitcoin broke below the key psychological level of $70,000 yesterday, forced liquidations have significantly amplified volatility, with over $2.3 billion in crypto long positions liquidated in the past 24 hours.

Deutsche Bank pointed out that the sustained sell-off indicates an exodus of traditional institutional investors, and the narrative of crypto assets as a "safe haven" or "digital gold" is rapidly losing validity. Data from CryptoQuant shows that US Bitcoin ETFs have shifted from net buying to net selling, marking a substantive reversal in institutional demand.

Wall Street Insights noted that under the pressure of another margin hike by the Chicago Mercantile Exchange (CME), spot silver extended its sharp decline in the Asian session on Friday, plunging by as much as 10% intraday; it rebounded after falling to the $64 mark, narrowing its losses.

This crash is a near-perfect repeat of historical episodes where silver peaked after being hit with **targeted regulatory measures** amid high leverage and extreme volatility. Consecutive and intensive margin hikes by the exchange have sent the holding costs for long positions surging sharply, ultimately leading to a capital chain collapse and a stampede-style sell-off.

Spot gold followed a similar trajectory: its price briefly broke below the $4,700 mark, then rebounded on the back of buying support, rising more than 2% from the intraday low.

(The intraday decline of spot gold narrowed to 0.25%)

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