Kashmir News Reports: Tech Stock Sell-off Causes Bitcoin to Plummet
In recent trading, world shares faced a downward trend in Asia due to heavy selling of technology stocks, leading to a significant drop in the price of bitcoin by up to 8%. The latest wave of concerns surrounding high tech stock prices resulted in South Korea’s Kospi index plummeting by nearly 4%, while oil prices also saw a decline of over $1 per barrel.
Bitcoin was trading close to $71,000 early on Thursday, experiencing a 7.3% decrease after hitting a low of around $69,000 earlier in the day. This marks its lowest level since November 2024. The cryptocurrency market, including bitcoin, has been impacted by recent statements made by U.S. Treasury Secretary Scott Bessent during a House Financial Services Committee session, where he stated that he lacked the authority to mandate banks to purchase such assets.
In terms of stock trading, Germany’s DAX index slipped by 0.2% to 24,568.67, while the CAC 40 in Paris saw a modest 0.2% increase to 8,278.99. On the other hand, Britain’s FTSE 100 index dropped by 0.3% to 10,371.83.
Looking ahead, the S&P 500 index futures showed a 0.2% increase, while the Dow Jones Industrial Average index futures slightly decreased by 0.1%.
In Asian markets, Tokyo’s Nikkei 225 index declined by 0.9% to 53,818.04, with South Korea’s Kospi index experiencing a more significant 3.9% decrease, closing at 5,163.57. Notably, shares of Samsung Electronics, South Korea’s largest company, fell by 5.9%, while chip maker SK Hynix witnessed a steep 6.7% decline.
Despite initial losses, Hong Kong’s Hang Seng index managed to recover and closed 0.1% higher at 26,885.24. Conversely, the Shanghai Composite index dropped by 0.6% to 4,075.92.
In other regional markets, Australia’s S&P/ASX 200 index fell by 0.4% to 8,889.20, while Taiwan’s Taiex index experienced a 1.5% decline.
The previous day saw the S&P 500 index decreasing by 0.5%, marking its fifth modest loss in the last six days. While the Dow Jones index rose by 0.5%, the Nasdaq composite index witnessed a notable 1.5% drop.
Despite more stocks within the S&P 500 index rising than falling, the decline in technology stocks continued to weigh on the overall index for a second consecutive day. Notably, Advanced Micro Devices saw a significant 17.3% drop, despite reporting stronger profits for the latest quarter compared to analysts’ expectations. Similarly, Uber Technologies also faced a 5.1% decrease after reporting lower-than-expected results for the quarter and providing a profit forecast below analysts’ estimates.
Some tech companies, however, managed to perform well amidst the turmoil. Super Micro Computer witnessed a notable 13.8% increase after reporting better-than-expected profits for the latest quarter.
In the energy market, U.S. benchmark crude oil prices fell by $1.05 to $64.09 per barrel, while Brent crude, the international standard, dropped by $1.11 to $68.35 per barrel. The precious metals market saw gold prices rising by 0.2% and silver prices falling by 4.6%.
The recent volatility in precious metal prices can be attributed to investors seeking safer investment options amidst various global uncertainties. Additionally, the fluctuation in prices has been influenced by concerns ranging from trade tariffs to currency devaluation and high government debt levels worldwide.
The currency market witnessed the dollar strengthening against the Japanese yen, rising to 157.03 yen from 156.88 yen. Meanwhile, the euro saw a slight decline to $1.1805 from $1.1809.
The latest sell-off in the tech sector, particularly affecting bitcoin, has raised concerns among investors and analysts. The impact of these developments on the global financial markets remains to be seen, with experts closely monitoring the situation for further insights and potential implications.
For more updates on the latest market trends and financial news, stay tuned to Kashmir News for comprehensive coverage and analysis.
