Why are the stock markets turning cautious, with Taiwan stocks plunging 2,600 points, Korean stocks hitting the trading halt, and Bitcoin bouncing back to 63K?

The sharp decline in the US stock market triggered a crash in Asian markets, with the Taiwan stock index opening down more than 2,600 points, and the Korean stock market hitting the trading halt; Bitcoin, on the other hand, rebounded against the trend back to $63,000. This week's focus is on US inflation data and SpaceX's IPO.

Taiwan stocks open down over 2,600 points, Korea hits trading halt, Asian markets open unfavorably this morning

This morning, Asian markets faced strong selling pressure, with both Korea and Taiwan stocks falling sharply. The Korean stock market plunged and triggered a trading halt (suspension mechanism), while Taiwan stocks also opened with a decline of over 2,600 points.

While Asian markets opened unfavorably this morning, Bitcoin, which has been falling for consecutive days, rebounded after breaking below $60,000, climbing back to around $63,000, with a recent high of $64,235 in the past 24 hours.

Taiwan and Korea markets suffer severe losses, SpaceX IPO to debut this week

Asian stock markets today suffered heavily, declining for three consecutive days. Taiwan stocks plummeted over 2,600 points at the open, reaching a low of around 42,389 points; TSMC opened down by 135 yuan to 2,230 yuan, marking the largest intraday decline ever.

South Korea's Kospi index opened with an 8.8% plunge, triggering a trading halt, mainly dragged down by chip stocks; Japan's Nikkei 225 also fell by 3.9%.

This decline was influenced by last Friday’s sharp drop in US stocks. A strong US employment report increased expectations for rate hikes, causing the Nasdaq to fall 4.18%, its largest decline since April 2025.

According to CNBC, Ritholtz Wealth Management strategist Callie Cox said that the stock market might be becoming a victim of its own success. The previous success was driven by strong employment data and continued economic growth. However, this success has also brought side effects, namely the persistent threat of inflation.

High inflation has caused investors to worry that the high-interest-rate environment will continue, and the high financing costs ultimately hit tech stocks that rely on capital expansion, leading to significant selling pressure in the stock market.

She added that this week, the focus of the US stock market shifts to inflation data and Elon Musk’s SpaceX IPO planned for Friday (6/12), which is expected to be one of the largest listings in Wall Street history and will be the biggest test of AI valuation.

Cox pointed out that past mega IPOs have symbolized the peak of stock market prosperity, with the market remaining silent on their signals, and investors appearing restrained and skeptical. Additionally, the market will closely watch the US Consumer Price Index and Producer Price Index reports released on Wednesday and Thursday, respectively.

Bitcoin faces key resistance, institutional investors' attitude shifts

In the cryptocurrency space, although Bitcoin briefly dropped to the $60,000 level, institutional investors' attitudes have shifted.

According to CoinDesk, data from SoSoValue shows that last week, the US Bitcoin spot ETF experienced net outflows of $1.72 billion, the largest weekly redemption in over a year.

When Bitcoin fell to $60,000 in February, capital outflows slowed as prices declined, indicating some buying interest. Recently, however, outflows have accelerated for four consecutive weeks, showing that institutions are adopting a more bearish stance.

Bitcoin is testing the resistance zone between $63,500 and $64,000. Although short-term bullish signals appear, and the price remains above the short-term moving averages, this zone is under pressure from the largest historical trading volume.

Analysis indicates that breaking through $64,000 is key to confirming weakening resistance. If unsuccessful, late buyers could be trapped, causing the price to fall back. The market is at a turning point, and investors are currently inclined to remain patient and wait for a clear direction.

This content is summarized by Crypto Agent from various sources, reviewed and edited by Crypto City. It is still in training, so there may be logical biases or informational errors. The content is for reference only and should not be considered investment advice.