Broadcom earnings shock! Taiwan stocks plunge by 1,000 points, Bitcoin falls below 63,000, and on-chain data: the late stage of the bear market has arrived

Broadcom’s earnings miss sparks selloff pressure in AI concept stocks, spilling over into Taiwan stocks, which plunged nearly 1,000 points at the open and fell below the 45,000-point mark. TSMC also opened higher before turning negative. Meanwhile, Bitcoin—under pressure from macro headwinds and large holders selling coins—has a hard time staying above $63,000.

Broadcom earnings hit Taiwan stocks; Bitcoin slips below 63K again

Broadcom, the US semiconductor company, announced earnings that fell short of expectations, triggering funds to temporarily pull back from AI concept stocks and affecting Asian markets such as those in the US, Taiwan, Japan, and South Korea. Among them, Taiwan stocks today (6/5) opened with a rapid drop of nearly 1,000 points, breaking below the 45,000-point mark. At the same time, after several days of declines, Bitcoin has again fallen below $63,000 and is hovering near the lows.

Taiwan stocks plunge and break below 45,000

According to CNBC, Broadcom’s revenue missed Wall Street expectations, sending its share price down more than 12%. The earnings report prompted funds to rotate from AI concept stocks into defensive sectors. It not only dragged the VanEck Semiconductor ETF down by more than 1%, but also pushed Arm Holdings and Micron lower by more than 4% and nearly 8%, respectively.

Selling pressure in tech stocks spread to Asia. In early trading today, Samsung Electronics in South Korea once fell nearly 7%, while Tokyo Electron in Japan dropped more than 6%, though it has since rebounded slightly. But Ortus Advisors stock strategist Andrew Jackson views it positively, because recent strong stocks do indeed need a round of correction.

In early trading today, Taiwan stocks dipped to 44,685 points, down nearly 1,000 points and breaking below 45,000. It then rebounded, with Delta Electronics, Hon Hai, and MediaTek all opening lower and weakening.

Although TSMC Chairman Wei Zhejia issued an optimistic outlook on AI demand—driving its early-session rise to 2,405 yuan—it still turned negative later due to sell pressure across the broader market.

• Related report: TSMC Shareholders’ Meeting — Wei Zhejia urges, “Please keep buying stocks,” and there are still no stop signals for the trend

Bitcoin holds its support as MicroStrategy’s coin sales draw attention

According to CoinDesk, after hitting lows, Bitcoin rebounded and once moved back toward $64,000, but it has now fallen below $63,000 again. However, the entire cryptocurrency market is facing a broad-based shakeout, and even some coins that had previously performed well are not escaping the downtrend—HYPE is sliding, and NEAR has been hit especially hard.

MicroStrategy (Strategy), a large Bitcoin holder, has recently made small-scale coin sales, which has affected investors’ confidence. But Grayscale’s research director Zach Pandl points out that while this has drawn criticism, in the long run, distributing holdings to institutions with diversified business models is beneficial for price development.

That said, Lekkar Capital CIO Quinn Thompson believes that a strategy like MicroStrategy issuing preferred shares to buy coins has already created a dilution burden for ordinary shareholders.

On-chain data turns extremely pessimistic—are we entering the late stage of a bear market?

As of last night, Bitcoin is down about 13% cumulatively over the past week. The macro environment has also turned unfavorable:

• US April job openings rose to 7.62 million, far exceeding market expectations.
• The 10-year Treasury yield broke above 4.45%, and markets have re-priced the probability of a Fed rate hike before the end of the year to more than 50%.
• In addition, a stalemate in US-Iran negotiations has driven oil prices higher, bringing inflation risk back into focus.

In terms of on-chain data, Glassnode described this move as “The Rally That Wasn't,” noting that the realized losses of Bitcoin holders have surged to $1.35 billion per day, including $770 million from stop-loss and capitulation by long-term holders. At the same time, short-term holders’ cost basis has fallen below the true market average, indicating that the market has entered the late stage of a bear market.

Bitwise Europe research head Andre Dragosch also believes that the sentiment index has triggered a contrarian buy signal, and historically, extreme sentiment typically marks potential bottoms.

Further Reading:
Wall Street’s “Tom Lee”: MicroStrategy selling coins signals Bitcoin’s bottom; the market structure is fine

SpaceX IPO countdown—plans to raise $75 billion! The new startup listing wave could drain liquidity from the Bitcoin market