On Monday, April 7, 2025, Bitcoin (BTC) traded above $79,000 during Asian market hours amidst significant downturns in major East Asian stock indices. The CoinDesk 20 index, which tracks the performance of the most critical digital assets, declined by 8%.
Hong Kong’s Hang Seng Index fell over 8% in the stock markets by mid-morning, Shanghai’s SSE Composite Index dropped 7%, and Taipei’s TAIEX decreased by 9%. Notably, tech giants such as Alibaba and Tencent experienced substantial losses, with Alibaba’s shares down 12% and Tencent’s down 9%. Taiwan Semiconductor Manufacturing Company (TSMC) saw a 10% decline, triggering the exchange’s price variation limit mechanism, temporarily halting trading to curb volatility.
The sharp decline in TSMC’s stock is linked to uncertainties surrounding U.S. semiconductor policies. While the White House has exempted Taiwanese semiconductors from tariffs, the future of the CHIPS Act, which funds semiconductor manufacturing in the U.S., remains uncertain.
In the cryptocurrency sector, significant assets experienced notable losses. Ethereum (ETH) declined by 11%, XRP by 9%, and Solana’s SOL by 10%. Lending protocols Maker (MKR) and Aave (AAVE) were among the worst performers, dropping around 14%. Liquidation data indicates that approximately $675 million in long positions were liquidated in the past 12 hours, compared to $123 million in short positions.
These market movements reflect global financial markets’ ongoing volatility and interconnectedness, with developments in one sector or region influencing others.
