Asian Stocks and Futures Surge After Significant Losses, Bitcoin Soars to $56,000
On Tuesday, Asian stocks and futures rebounded, recovering from significant losses suffered during Monday’s trading session, which was considered one of the worst in recent years.
Bitcoin and Japanese stocks appear to be stabilizing as discussions of rate cuts intensify.
Bitcoin Surges to $56,000
Bitcoin surpassed $56,000 early Tuesday morning, driven by a broader Asian market recovery as investors sought to take advantage of low prices following Monday’s sharp drop. BTC saw a 6% increase, marking its strongest 24-hour gain since May. This surge triggered a wider market recovery, with Ethereum and XRP increasing by 8%, BNB by 12%, and Solana’s SOL by 16%.
Market Performances and Trading Volumes
Meanwhile, the Japanese Topix index surged by approximately 10% as the yen weakened against the US dollar, ending a five-day rally.
S&P 500 futures rose by 1.5%, while the tech-dominated Nasdaq climbed by 2.1%. Renewed hopes of rapid rate cuts by the Fed, following Monday’s global market plunge, seem to have restored risk appetite.
ETFs Experience High Volume with Few Sales
Institutional investors sold their shares in Bitcoin Spot ETFs during a day of significant volume on Monday. Eric Balchunas revealed over $2.5 billion in volume less than 2 hours after the market opened. These US-listed products recorded net outflows of $168.4 million, bringing net withdrawals to over $300 million this month.
On the other hand, Ethereum Spot ETFs returned to the green, with $49 million in net inflows for Monday.
Monday’s Plunge and Its Causes
On Monday, both the crypto markets and global stock markets experienced one of their most significant losses in recent years. A strong Japanese yen triggered a carry trade liquidation loop, accelerating selling that had started the previous week due to geopolitical tensions in the Middle East.
The Japanese Topix 100 index recorded its sharpest decline since 2011. Meanwhile, the price of Bitcoin in yen on the Tokyo-based exchange, bitFlyer, dropped by nearly 15%, much more than its price in dollars on Western exchanges.
