Asia Market Open: Bitcoin Tumbles as Asian Equities Reflect Global Tech Retreat

By: crypto insight|2026/02/05 19:00:02

Key Takeaways:

Bitcoin’s price plunged by 6% to $72,000, reflecting the spillover effects from the global tech sector’s downturn into Asian markets.
A staggering $627.96 million in liquidations occurred over the past 24 hours, highlighting intensified forced selling.
Asian equities, including indices like MSCI, Kospi, CSI300, and Hang Seng, faced significant declines as tech sentiment soured.
The U.S. market closed with losses as fears of AI spending peaks and interest in more stable value stocks grew.

WEEX Crypto News, 2026-02-05 10:40:50

In the aftermath of a challenging session on Wall Street, Bitcoin has seen a substantial drop of 6% to $72,000. This downturn was mirrored in the Asian markets as they opened, with widespread caution among traders reacting to the global tech sector’s decline. This development underscores the interconnected nature of global financial markets, where shifts in one sector can have cascading effects across regions and asset classes.

Market Dynamics: Bitcoin’s Volatility and Current Trends

Bitcoin’s recent volatility was accompanied by significant liquidation activities. Over the past 24 hours, CoinGlass reported a total of $627.96 million in liquidations, with long positions accounting for $497.10 million and shorts for $130.86 million. Remarkably, Bitcoin itself was the primary contributor to these figures, with $255.4 million in liquidations. Following suit, Ether saw $181.75 million, Solana $70.84 million, and other smaller cryptocurrencies amounting to $24.09 million.

These figures illustrate a high-pressure situation in the cryptocurrency markets, where forced sales have gained momentum as prices plummeted. Such dynamics not only reflect immediate trading strategies but also longer-term sentiment shifts among investors and traders.

Asian Equities Under Pressure: The Impact of Tech Sector Woes

The Asian equities market started on a weak note, influenced heavily by tech sector anxiety. The MSCI’s broadest index of Asia-Pacific shares, excluding Japan, dropped 1%, while South Korea’s Kospi experienced a more pronounced fall of 1.7%. Meanwhile, Taiwan’s benchmark slipped by 0.7%, China’s CSI300 retracted 0.7%, Hong Kong’s Hang Seng eased by 0.8%, and Japan’s Nikkei remained stagnant.

This retreat is partly attributed to fears of over-expenditure in the AI sector, especially after Alphabet’s announcement of a capital expenditure estimate ranging from $175 billion to $185 billion. This announcement stirred the market, resulting in its shares undergoing significant volatility before settling slightly downwards post-market hours.

Expert Insights on Market Rumblings

Samer Hasn, a senior market analyst at XS.com, provided insights into the current conditions affecting crypto and broader markets. According to Hasn, the overall market sentiment is precariously weak, driven by the battle for dominance in AI technology. The lack of liquidity, due to decreased confidence, has further exacerbated fears.

Additionally, Hasn noted that futures traders are increasingly withdrawing, with spot ETF flows described as unsustainable. Compounding this uncertainty is the risk of escalating geopolitical tensions in the Middle East and anticipations linked to upcoming economic data and corporate earnings, keeping market participants on high alert.

Wall Street’s Performance Amid AI and Valuation Concerns

On the other side of the globe, Wall Street concluded on a downbeat note, as skepticism loomed over current valuations and questions about whether the AI rally has reached its zenith. Performance indices such as the S&P 500 dropped by 0.51%, the Nasdaq contracted by 1.51%, while the Dow edged up by 0.53% to close at 49,501.30.

Tech and chip stocks bore the brunt of these declines. Notably, Advanced Micro Devices (AMD) suffered a brutal 17% drop following a revenue forecast that failed to meet investor expectations. Nvidia saw a 3.4% decrease, with the PHLX semiconductor index plummeting by 4.4%. Palantir also reversed its previous day’s gain, falling almost 12%.

Despite these challenges, some stabilization attempts were visible. Nvidia witnessed a near 2% rise after the market closure, subsequently lifting Nasdaq futures by 0.6% and S&P 500 futures by 0.4%. This uptick was fueled by a shift from expensive growth stocks to more reliable value and cyclical equities, with the S&P 500 value index continuing its positive streak for five consecutive sessions.

Broader Economic Signals and Commodities Market Movement

Broader economic indicators remain in flux, with significant attention drawn to the postponement of the U.S. January jobs report, now rescheduled for February 11 due to a government shutdown. Concurrently, ADP data highlighted weaker private payroll growth, particularly in the services and manufacturing sectors, sending mixed signals to the market about the labor economy’s health.

In the commodities arena, oil prices dwindled following two days of gains, as the U.S. and Iran schedule talks in Oman. West Texas Intermediate dropped by 1.4% to settle at $64.23 per barrel, and Brent similarly fell by 1.4% to hit $68.47. On the contrary, gold and silver saw moderate increases in early trade, bouncing back from their sharp declines the previous Friday.

Analysis: The Interconnection Between Crypto and Stock Markets

The recent developments underscore a critical phenomenon in modern finance — the intricate linkage between cryptocurrency markets and traditional stock exchanges. The case with Bitcoin and Asian equities indicates how vulnerabilities in one market segment can ripple through others. The sell-off in technology stocks, particularly those integral to AI advancements, can trigger defensive maneuvers across diverse portfolios, including digital assets like Bitcoin and Ether.

Investors and traders operating in such environments must be vigilant, recognizing not only the opportunities that arise from these dynamics but also being mindful of the heightened risks associated with volatility. Market participants are advised to consider diversifying their strategies, meticulously assessing the macroeconomic indicators that might influence asset classes ranging from equities to cryptocurrencies.

Technological Investments and Market Health

The relationship between technological investments, such as AI expenditure, and overall market health is another area warranting exploration. As companies like Alphabet continue to allocate significant resources to AI developments, questions about sustainable growth and immediate return on investment come to the forefront. This scenario presents a dichotomy where technological innovation promises future gains while posing short-term financial strains potentially affecting shareholder perception.

With this backdrop, financial analysts and investors must adeptly navigate market signals, balancing speculative endeavors with more conservative strategies to mitigate potential downturns.

Strategic Financial Planning in Uncertain Times

Given the current market climate, both new and seasoned investors might find it beneficial to reassess their financial strategies. This could involve exploring more stable investment vehicles or reinforcing their holdings in traditionally less volatile sectors. Additionally, keeping abreast of geopolitical developments and economic forecasts will prove essential in crafting adaptable, forward-looking investment plans.

For cryptocurrency enthusiasts, platforms like WEEX offer an avenue to engage with digital assets thoughtfully. By staying informed through reputable news outlets and leveraging market insights, traders can better position themselves to capitalize on growth opportunities while safeguarding against unnecessary risks.

FAQs

What caused Bitcoin’s recent price drop?

The decline in Bitcoin’s price was largely influenced by the broader sell-off in the global tech sector, which affected Asian markets as well. This led to increased defensive trading across both cryptocurrencies and equities.

How much was liquidated in the crypto markets recently?

Over the past 24 hours, there were liquidations amounting to approximately $627.96 million. This included significant figures from long and short positions, with Bitcoin leading the liquidations.

Why are Asian equities experiencing a slump?

Asian equities have been impacted by negative sentiment in the tech sector, particularly concerning AI investment volatility. Market apprehensions regarding unsustainable spot ETF flows and possible geopolitical tensions also contributed to this decline.

How has Wall Street responded to current market conditions?

Wall Street ended on a lower note, driven by doubts over AI growth sustainability and elevated stock valuations. While tech stocks faced considerable losses, there was better performance among value and cyclical stocks.

What should investors consider amid current market uncertainties?

Investors should focus on diversification and remain informed on broader economic indicators and geopolitical developments. Exploring stable investment options while monitoring tech sector trends could be prudent in navigating the current volatile environment.

Foreword: Today, the People's Bank of China's website published the "Notice of the People's Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration for Market Regulation, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission, State Administration of Foreign Exchange on Further Preventing and Dealing with Risks Related to Virtual Currency and Others (Yinfa [2026] No. 42)", the latest regulatory requirements from the eight departments including the central bank, which are basically consistent with the regulatory requirements of recent years. The main focus of the regulation is on speculative activities such as virtual currency trading, exchanges, ICOs, overseas platform services, and this time, regulatory oversight of RWA has been added, explicitly prohibiting RWA tokenization, stablecoins (especially those pegged to the RMB). The following is the full text:

To the people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government, the Xinjiang Production and Construction Corps:

Recently, there have been speculative activities related to virtual currency and Real-World Assets (RWA) tokenization, disrupting the economic and financial order and jeopardizing the property security of the people. In order to further prevent and address the risks related to virtual currency and Real-World Assets tokenization, effectively safeguard national security and social stability, in accordance with the "Law of the People's Republic of China on the People's Bank of China," "Law of the People's Republic of China on Commercial Banks," "Securities Law of the People's Republic of China," "Law of the People's Republic of China on Securities Investment Funds," "Law of the People's Republic of China on Futures and Derivatives," "Cybersecurity Law of the People's Republic of China," "Regulations of the People's Republic of China on the Administration of Renminbi," "Regulations on Prevention and Disposal of Illegal Fundraising," "Regulations of the People's Republic of China on Foreign Exchange Administration," "Telecommunications Regulations of the People's Republic of China," and other provisions, after reaching consensus with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, and with the approval of the State Council, the relevant matters are notified as follows:

I. Clarify the essential attributes of virtual currency, Real-World Assets tokenization, and related business activities

(I) Virtual currency does not possess the legal status equivalent to fiat currency. Virtual currencies such as Bitcoin, Ether, Tether, etc., have the main characteristics of being issued by non-monetary authorities, using encryption technology and distributed ledger or similar technology, existing in digital form, etc. They do not have legal tender status, should not and cannot be circulated and used as currency in the market.

The business activities related to virtual currency are classified as illegal financial activities. The exchange of fiat currency and virtual currency within the territory, exchange of virtual currencies, acting as a central counterparty in buying and selling virtual currencies, providing information intermediary and pricing services for virtual currency transactions, token issuance financing, and trading of virtual currency-related financial products, etc., fall under illegal financial activities, such as suspected illegal issuance of token vouchers, unauthorized public issuance of securities, illegal operation of securities and futures business, illegal fundraising, etc., are strictly prohibited across the board and resolutely banned in accordance with the law. Overseas entities and individuals are not allowed to provide virtual currency-related services to domestic entities in any form.

A stablecoin pegged to a fiat currency indirectly fulfills some functions of the fiat currency in circulation. Without the consent of relevant authorities in accordance with the law and regulations, any domestic or foreign entity or individual is not allowed to issue a RMB-pegged stablecoin overseas.

（II）Tokenization of Real-World Assets refers to the use of encryption technology and distributed ledger or similar technologies to transform ownership rights, income rights, etc., of assets into tokens (tokens) or other interests or bond certificates with token (token) characteristics, and carry out issuance and trading activities.

Engaging in the tokenization of real-world assets domestically, as well as providing related intermediary, information technology services, etc., which are suspected of illegal issuance of token vouchers, unauthorized public offering of securities, illegal operation of securities and futures business, illegal fundraising, and other illegal financial activities, shall be prohibited; except for relevant business activities carried out with the approval of the competent authorities in accordance with the law and regulations and relying on specific financial infrastructures. Overseas entities and individuals are not allowed to illegally provide services related to the tokenization of real-world assets to domestic entities in any form.

II. Sound Work Mechanism

(III) Inter-agency Coordination. The People's Bank of China, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of virtual currency-related illegal financial activities.

The China Securities Regulatory Commission, together with the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the State Administration of Foreign Exchange, and other departments, will improve the work mechanism, strengthen coordination with the Cyberspace Administration of China, the Supreme People's Court, and the Supreme People's Procuratorate, coordinate efforts, and overall guide regions to carry out risk prevention and disposal of illegal financial activities related to the tokenization of real-world assets.

(IV) Strengthening Local Implementation. The people's governments at the provincial level are overall responsible for the prevention and disposal of risks related to virtual currencies and the tokenization of real-world assets in their respective administrative regions. The specific leading department is the local financial regulatory department, with participation from branches and dispatched institutions of the State Council's financial regulatory department, telecommunications regulators, public security, market supervision, and other departments, in coordination with cyberspace departments, courts, and procuratorates, to improve the normalization of the work mechanism, effectively connect with the relevant work mechanisms of central departments, form a cooperative and coordinated working pattern between central and local governments, effectively prevent and properly handle risks related to virtual currencies and the tokenization of real-world assets, and maintain economic and financial order and social stability.

III. Strengthened Risk Monitoring, Prevention, and Disposal

(5) Enhanced Risk Monitoring. The People's Bank of China, China Securities Regulatory Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Public Security, State Administration of Foreign Exchange, Cyberspace Administration of China, and other departments continue to improve monitoring techniques and system support, enhance cross-departmental data analysis and sharing, establish sound information sharing and cross-validation mechanisms, promptly grasp the risk situation of activities related to virtual currency and real-world asset tokenization. Local governments at all levels give full play to the role of local monitoring and early warning mechanisms. Local financial regulatory authorities, together with branches and agencies of the State Council's financial regulatory authorities, as well as departments of cyberspace and public security, ensure effective connection between online monitoring, offline investigation, and fund tracking, efficiently and accurately identify activities related to virtual currency and real-world asset tokenization, promptly share risk information, improve early warning information dissemination, verification, and rapid response mechanisms.

(6) Strengthened Oversight of Financial Institutions, Intermediaries, and Technology Service Providers. Financial institutions (including non-bank payment institutions) are prohibited from providing account opening, fund transfer, and clearing services for virtual currency-related business activities, issuing and selling financial products related to virtual currency, including virtual currency and related financial products in the scope of collateral, conducting insurance business related to virtual currency, or including virtual currency in the scope of insurance liability. Financial institutions (including non-bank payment institutions) are prohibited from providing custody, clearing, and settlement services for unauthorized real-world asset tokenization-related business and related financial products. Relevant intermediary institutions and information technology service providers are prohibited from providing intermediary, technical, or other services for unauthorized real-world asset tokenization-related businesses and related financial products.

(7) Enhanced Management of Internet Information Content and Access. Internet enterprises are prohibited from providing online business venues, commercial displays, marketing, advertising, or paid traffic diversion services for virtual currency and real-world asset tokenization-related business activities. Upon discovering clues of illegal activities, they should promptly report to relevant departments and provide technical support and assistance for related investigations and inquiries. Based on the clues transferred by the financial regulatory authorities, the cyberspace administration, telecommunications authorities, and public security departments should promptly close and deal with websites, mobile applications (including mini-programs), and public accounts engaged in virtual currency and real-world asset tokenization-related business activities in accordance with the law.

(8) Strengthened Entity Registration and Advertisement Management. Market supervision departments strengthen entity registration and management, and enterprise and individual business registrations must not contain terms such as "virtual currency," "virtual asset," "cryptocurrency," "crypto asset," "stablecoin," "real-world asset tokenization," or "RWA" in their names or business scopes. Market supervision departments, together with financial regulatory authorities, legally enhance the supervision of advertisements related to virtual currency and real-world asset tokenization, promptly investigating and handling relevant illegal advertisements.

（IX） Continued Rectification of Virtual Currency Mining Activities. The National Development and Reform Commission, together with relevant departments, strictly controls virtual currency mining activities, continuously promotes the rectification of virtual currency mining activities. The people's governments of various provinces take overall responsibility for the rectification of "mining" within their respective administrative regions. In accordance with the requirements of the National Development and Reform Commission and other departments in the "Notice on the Rectification of Virtual Currency Mining Activities" (NDRC Energy-saving Building [2021] No. 1283) and the provisions of the "Guidance Catalog for Industrial Structure Adjustment (2024 Edition)," a comprehensive review, investigation, and closure of existing virtual currency mining projects are conducted, new mining projects are strictly prohibited, and mining machine production enterprises are strictly prohibited from providing mining machine sales and other services within the country.

（X） Severe Crackdown on Related Illegal Financial Activities. Upon discovering clues to illegal financial activities related to virtual currency and the tokenization of real-world assets, local financial regulatory authorities, branches of the State Council's financial regulatory authorities, and other relevant departments promptly investigate, determine, and properly handle the issues in accordance with the law, and seriously hold the relevant entities and individuals legally responsible. Those suspected of crimes are transferred to the judicial authorities for processing according to the law.

（XI） Severe Crackdown on Related Illegal and Criminal Activities. The Ministry of Public Security, the People's Bank of China, the State Administration for Market Regulation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, as well as judicial and procuratorial organs, in accordance with their respective responsibilities, rigorously crack down on illegal and criminal activities related to virtual currency, the tokenization of real-world assets, such as fraud, money laundering, illegal business operations, pyramid schemes, illegal fundraising, and other illegal and criminal activities carried out under the guise of virtual currency, the tokenization of real-world assets, etc.

（XII） Strengthen Industry Self-discipline. Relevant industry associations should enhance membership management and policy advocacy, based on their own responsibilities, advocate and urge member units to resist illegal financial activities related to virtual currency and the tokenization of real-world assets. Member units that violate regulatory policies and industry self-discipline rules are to be disciplined in accordance with relevant self-regulatory management regulations. By leveraging various industry infrastructure, conduct risk monitoring related to virtual currency, the tokenization of real-world assets, and promptly transfer issue clues to relevant departments.

IV. Strict Supervision of Domestic Entities Engaging in Overseas Business Activities

（XIII） Without the approval of relevant departments in accordance with the law and regulations, domestic entities and foreign entities controlled by them may not issue virtual currency overseas.

（XIV） Domestic entities engaging directly or indirectly in overseas external debt-based tokenization of real-world assets, or conducting asset securitization activities abroad based on domestic ownership rights, income rights, etc. (hereinafter referred to as domestic equity), should be strictly regulated in accordance with the principles of "same business, same risk, same rules." The National Development and Reform Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and other relevant departments regulate it according to their respective responsibilities. For other forms of overseas real-world asset tokenization activities based on domestic equity by domestic entities, the China Securities Regulatory Commission, together with relevant departments, supervise according to their division of responsibilities. Without the consent and filing of relevant departments, no unit or individual may engage in the above-mentioned business.

(15) Overseas subsidiaries and branches of domestic financial institutions providing Real World Asset Tokenization-related services overseas shall do so legally and prudently. They shall have professional personnel and systems in place to effectively mitigate business risks, strictly implement customer onboarding, suitability management, anti-money laundering requirements, and incorporate them into the domestic financial institutions' compliance and risk management system. Intermediaries and information technology service providers offering Real World Asset Tokenization services abroad based on domestic equity or conducting Real World Asset Tokenization business in the form of overseas debt for domestic entities directly or indirectly venturing abroad must strictly comply with relevant laws and regulations. They should establish and improve relevant compliance and internal control systems in accordance with relevant normative requirements, strengthen business and risk control, and report the business developments to the relevant regulatory authorities for approval or filing.

V. Strengthen Organizational Implementation

(16) Strengthen organizational leadership and overall coordination. All departments and regions should attach great importance to the prevention of risks related to virtual currencies and Real World Asset Tokenization, strengthen organizational leadership, clarify work responsibilities, form a long-term effective working mechanism with centralized coordination, local implementation, and shared responsibilities, maintain high pressure, dynamically monitor risks, effectively prevent and mitigate risks in an orderly and efficient manner, legally protect the property security of the people, and make every effort to maintain economic and financial order and social stability.

(17) Widely carry out publicity and education. All departments, regions, and industry associations should make full use of various media and other communication channels to disseminate information through legal and policy interpretation, analysis of typical cases, and education on investment risks, etc. They should promote the illegality and harm of virtual currencies and Real World Asset Tokenization-related businesses and their manifestations, fully alert to potential risks and hidden dangers, and enhance public awareness and identification capabilities for risk prevention.

VI. Legal Responsibility

(18) Engaging in illegal financial activities related to virtual currencies and Real World Asset Tokenization in violation of this notice, as well as providing services for virtual currencies and Real World Asset Tokenization-related businesses, shall be punished in accordance with relevant regulations. If it constitutes a crime, criminal liability shall be pursued according to the law. For domestic entities and individuals who knowingly or should have known that overseas entities illegally provided virtual currency or Real World Asset Tokenization-related services to domestic entities and still assisted them, relevant responsibilities shall be pursued according to the law. If it constitutes a crime, criminal liability shall be pursued according to the law.

(19) If any unit or individual invests in virtual currencies, Real World Asset Tokens, and related financial products against public order and good customs, the relevant civil legal actions shall be invalid, and any resulting losses shall be borne by them. If there are suspicions of disrupting financial order and jeopardizing financial security, the relevant departments shall deal with them according to the law.

This notice shall enter into force upon the date of its issuance. The People's Bank of China and ten other departments' "Notice on Further Preventing and Dealing with the Risks of Virtual Currency Trading Speculation" (Yinfa [2021] No. 237) is hereby repealed.

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