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Just as US stocks shrink, Asia companies are also recording significant losses as Bitcoin, and other major cryptocurrencies face declines.
Stocks of companies related to crypto in Asia tanked amid the general stock plunges that have also affected cryptocurrencies. The losses began due to the Federal Reserve’s interest rate hike announcement. The Fed placed a 0.5% jump on interest rates in order to fight inflation. Even tech stocks are having their share of the ongoing downturn. Coinspeaker reported earlier this week that tech stocks lost more than $1 trillion within three trading sessions after the increase in interest rates. While Apple Inc (NASDAQ: AAPL) shed $220 billion during the period, Microsoft’s valuation reduced by $189 billion. The same goes with Meta Platforms (NASDAQ: FB), which recorded a loss of $199 billion, and Alphabet Inc (NASDAQ: GOOG) lost grip of $123 billion. Other top tech companies are also in their lows.
Just as US stocks shrink, Asia companies are also recording significant losses as Bitcoin, and other major cryptocurrencies face declines. Just yesterday, the broader crypto market missed about 16% of its overall capitalization. Precisely, Bitcoin has plunged to its lowest price in 10 months to trade at around $32,000. As a matter of fact, the price of Bitcoin fell to about $24,000 less than 48 hours ago before a slight correction that pushed up the top crypto asset. The likes of Ethereum and Luna are also plummeting, raising concern in the crypto community.
Companies in Asia on Loss Spree as Crypto Market Plunges
The current crypto bear market has influenced some companies in Asia. On the same day 16% left the overall crypto capitalization, Japanese investment advisory firm Monex Group (TOKYO: 8698) closed at a loss of 10%. In addition, Hong Kong-listed BC Technology Group (HKG: 0863) lost as much as 18%. OKG Technology (HKG: 1499) also had its share of losses of companies in Asia that dropped due to the crypto declines.
While Bitcoin recovered from $24,000 to $30,000, OKG and Monex also pulled in but 1% profit. Monex is the parent company of different businesses, including trading platform TradeStation and crypto exchange Coincheck. On the other hand, BC Technology owns OSL, a crypto brokerage and lending company.
Meanwhile, the Chinese Meitu added 1.1% earlier today after a slight dip the previous day. Meitu is a Chinese app developer that has investments in Bitcoin. As of April 2021, the company had more than 940 BTC after purchasing an additional $175.6 coins for $10 million. This came after the company began a “cryptocurrency investment plan” a month earlier. At the time, the company also has 31,000 ETH in possession. As part of its newly-adopted initiative, Meitu has infused $100 million in BTC and ETH. According to the Chinese company, the crypto investments are in preparation for its debut in the blockchain space.