Taiwan stocks drop over 600 points, Bitcoin once plunges below 60k! U.S. chip stocks cool off, Iran-U.S. conflict intensifies

The escalation of the US-Iran conflict triggers market panic, with the Taiwan stock market plunging over 600 points in early trading, and Asian markets broadly weakening. Bitcoin temporarily drops below $62,000, as the market closely watches the upcoming US May CPI data.

Taiwan stocks open down more than 500 points! Escalating US-Iran conflict impacts the market

The geopolitical situation in the Middle East rapidly worsens, with direct military clashes between the US and Iran sparking intense volatility in global financial markets. US tech stocks face heavy selling pressure, dragging down Asian stock performance today, with Taiwan stocks once sharply falling over 500 points in early trading (6/10).

After the microstrategy (Strategy) coin-buying effect quickly dissipated, Bitcoin’s price briefly dipped near $60k. Investors are currently not only worried about escalating regional conflicts but are also closely monitoring the upcoming US Consumer Price Index (CPI) for May.

Taiwan stocks narrow losses after opening decline; Asian markets broadly weaken

Affected by the Philadelphia Semiconductor Index in the US plunging over 8 intraday, Taiwan’s weighted index fell more than 500 points in early trading. The heavyweight stock TSMC (2330) dropped as much as 25 NT dollars to 2,280 NT dollars, while MediaTek (2454), Delta Electronics (2308), and Hon Hai (2317) all opened lower.

However, Kuo Yuan Ye (2327) and Largan Precision (3008) hit the daily limit up, leading a rebound in passive components and optical stocks. The broader market’s decline narrowed to within 500 points at one point. But as of the time of writing, the decline continued to widen, dropping over 600 points.

In other Asian markets, South Korea’s Kospi index fell 3.3% intraday, leading the decline among Asian stock markets, while Japan’s Nikkei 225 also dropped 0.76%.

Risk aversion sentiment rises, while strong US employment data weakens the Fed’s rate cut expectations. Coupled with the AI build-up boom pushing markets to record highs followed by increased volatility, the resilience of Asian stocks is being strictly tested.

US Apache helicopter shot down, US retaliates with airstrikes on Iran

Yesterday, the conflict between the US and Iran intensified again. According to reports from The Wall Street Journal and Axios, US President Donald Trump accused Iran of shooting down a US Apache helicopter conducting patrol missions in the Hormuz Strait.

Trump later stated that the two pilots are safe and emphasized that the US must respond strongly to this attack. The US Central Command also announced that it launched defensive strikes against Iran on the afternoon of the 9th US Eastern Time.

US officials revealed that the targets included Iran’s air defense systems and radar facilities around the Hormuz Strait.

Iranian state media reported explosions in several areas along the coast of the Hormuz Strait, including Qeshm Island. Iranian Foreign Minister Abbas Araghchi responded on social media, saying Iran’s armed forces will not sit idly by in the face of any attack or threat.

CNBC reports that this conflict severely threatens the fragile ceasefire agreement between the US and Iran and casts a shadow over the resumption of negotiations to reopen the Hormuz Strait.

Following this news, international oil prices rebounded, with Brent crude August futures and WTI July futures both rising 1.5%, while spot gold prices fell about 1%.

Bitcoin holds steady at 60,000; BlackRock warns of energy shocks and inflation surge

Under the dual pressures of geopolitical tensions and macroeconomic factors, the Nasdaq’s decline dragged Bitcoin down, with prices approaching $60,000. However, as US stock declines eased, Bitcoin managed to recover to around $62,000.

Cryptocurrency-related stocks plummeted across the board, with MicroStrategy (Strategy) stock down 8%, and Coinbase stock down 4.1%.

Regarding future economic trends, the world’s largest asset manager, BlackRock, issued a warning.

According to CoinDesk, BlackRock pointed out that if the Hormuz Strait remains blocked for an extended period, US crude oil inventories could fall to their lowest levels in 40 years, further exacerbating inflationary pressures.

Investors are now focusing on the upcoming May Consumer Price Index (CPI), scheduled to be released at 8:30 PM Taiwan time on June 11.

Economists expect the index to increase by 4.2% compared to the same period last year. If the data meets expectations, it will mark the fastest growth since April 2023, potentially forcing the Fed to maintain higher borrowing costs, which could put additional downward pressure on risk assets like Bitcoin.

Further reading:
Why might the US stock market crash in June? Finance professors identify the “fatal bullet” from current market conditions

Huang Renxun discusses last week’s AI tech stock plunge: a great buying opportunity, now at a cheap discount

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