On Monday, April 7, 2025, as trading opened across Asia, bitcoin (BTC) stayed above $79,000 despite a sharp drop in regional equity markets. Hong Kong’s Hang Seng Index fell nearly 9 percent, while Shanghai’s SSE Composite Index was down 7 percent, and Taiwan’s TAIEX was down 9 percent, as investors across the region fretted widely.
The decline was largely driven by renewed geopolitical tensions and uncertainty around U.S. semiconductor policy. Over the same period, Bitcoin’s continued strength underscores its increasing attractiveness as a hedge against traditional markets.
CoinDesk 20 Index and Other Major Cryptocurrencies Also Drop
The CoinDesk 20 Index, which measures the market performance of the 20 largest and most liquid digital assets, posted 8% losses amid wider market turbulence. Other major altcoins experienced more severe losses, including an 11% pullback in Ethereum (ETH) and a 10% drop in Solana (SOL), indicative of a ramped-up selloff across Layer 1 ventures. It wasn’t much better for decentralized finance (DeFi) protocols—Maker (MKR) and Aave (AAVE), two top lending platforms, fell about 14% apiece. This trend suggests a larger retreat away from riskier crypto assets during periods of increasing market volatility.
Asian Tech Stocks Slammed by Tariff Worry
In the technology sector, Alibaba’s shares fell 12 percent, trading on the Hong Kong Stock Exchange, while Tencent dropped 9 percent. Taiwan Semiconductor Manufacturing Company (TSMC) fell 10% at the open, prompting the exchange’s limit on price fluctuations to take effect — an automatic system that stops trading to prevent extreme volatility.
These losses are mostly a result of rising trade frictions and uncertainty in future U.S. semiconductor policy, such as the CHIPS Act and tariff exemptions. The potential disruptions to supply chains, as well as changing geopolitical strategies, are behind market concerns.
U.S. Semiconductor Export Controls
Taiwanese semiconductors are exempt from the latest round of U.S. tariffs, providing temporary relief to significant suppliers. But the longer-term fate of the CHIPS Act — a key U.S. effort to expand semiconductor production at home — is uncertain.
This uncertainty in policy has raised alarm over the reliability of global chip supply chains, hitting companies like Taiwan Semiconductor Manufacturing Company (TSMC) particularly hard. As the world’s largest contract chipmaker, TSMC’s business is hyper-sensitive to geopolitical shifts and regulatory changes.
Cryptocurrency Liquidations Multiply to Substantial Factors
CoinGlass data shows that almost $675 million worth of long positions were devoured in the last 12 hours, while only $123 million in short position liquidation took place. This stark imbalance shows that many traders who had taken long bets on rising crypto prices were automatically cleared out of their positions at a loss.
These multi-day mass liquidations further drove bears down across the board, forming a part of the broader market sell-off. Liquidation events like this are often a sign of a shift in sentiment, where overleveraged positions, fueling volatility, are washed out.
Price Predictions and Worst of Market View
Various price predictions for major cryptocurrencies emerge during the current market volatility. Recent price actions and forecasts are summarized in the table below:
| Cryptocurrency | Current Price | 24h Change | Price Prediction |
| Bitcoin (BTC) | $75,761 | -9.13% | Analysts suggest potential stabilization if market conditions improve. |
| Ethereum (ETH) | $1,512 | -16.4% | Forecasts indicate a possible rebound if network activity increases. |
| Solana (SOL) | $100.34 | -16.7% | Expected to recover contingent on broader market sentiment. |
Disclaimer: Price predictions are highly speculative and not a guarantee of actual performance.
Conclusion
Bitcoin’s capacity to stick above the $79,000 mark stands in stark contrast to tumbling Asian equity markets. As traditional stocks, especially in the tech and manufacturing industries, suffered severe declines, Bitcoin has demonstrated relative stability.
This separation highlights Bitcoin’s changing function as a possible protector against worldwide monetary unpredictability. Nevertheless, investors would do well to exercise caution and keep an eye out for evolving macroeconomic and geopolitical factors, as markets for both traditional and digital assets are very reactive to external shocks.
This article is for informational purposes only and does not constitute financial advice. Always conduct thorough research before making investment decisions.
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FAQs
1. Why is Bitcoin so stable while the Asian markets are in freefall?
Bitcoin is a hedge in times of market instability, and many investors turn to it when the traditional equities (especially Asian) market faces a steep fall or volatility.
2. Who, or was it just a bear in crypto? What jump in Ethereum-Solana-defi tokens-why were they selling?
Panic outflows were accelerated by rising liquidations, macro fears, and investor panic as ETH, SOL, and blue-chip DeFi tokens like Aave and Maker were brutally sold off.
3. How do U.S. semiconductor policies affect Asian tech stocks?
There are fears about supply chains, with uncertainty surrounding the CHIPS Act and U.S. tariffs causing huge losses in TSMC, Alibaba, and Tencent.
4. What to watch for crypto traders amid market crashes like this one?
Keep an eye on liquidation volumes, macroeconomic updates, and policy news article. Utilize stop-loss orders and keep yourself up-to-date with regard to risk availability in highly volatile environments.
Glossary of Key Terms
1. Bitcoin (BTC)
A decentralized digital currency not governed by a central bank which operates using blockchain technology to facilitate peer-to-peer transactions. BTC is also widely regarded as a store of value, particularly during times of economic uncertainty.
2. CoinDesk 20 Index (CD20)
An index that tracks the performance of the 20 most liquid and actively traded digital assets. It says something about the general health of the crypto market.
3. Liquidation
Forced closure of a leveraged trading position when losses reach a defined margin level. Liquidation volume is a lot higher, so this can move the market quickly.
4. Long Position
It is an investment strategy that involves an investor purchasing a security with the expectation of price appreciation. Long positions are susceptible to being liquidated if the market tumbles, magnifying losses.
5. CHIPS Act
A U.S. legislative push to incentivize domestic semiconductor production and cut reliance on foreign providers such as TSMC. It’s less certain that the future hit global tech markets.
6. Decentralize Finance (DeFi)
An intermediate-less blockchain system of (ish) financial exchange. Protocols such as Aave and Maker provide lending and borrowing services through smart contracts.
7. Mechanism of Price Fluctuation Limit
A mechanism employed by stock exchanges to prohibit trading of an asset temporarily due to its rapid price movement. This prevents severe market volatility.
8. Semiconductor Supply Chain
The international web that designs, produces, and distributes computer chips. Such disruptions here, especially in Asia, can have a massive ripple effect on global tech and crypto markets.
