Asia Market Open: Crypto Extends Losses, Global Stocks Weaken on Economic Jitters

Market Overview - Asian markets opened with a risk-off tone, reflecting cautious sentiment among investors regarding the global economic outlook, leading to declines in crypto prices and major equity benchmarks [1] - The total crypto market cap decreased by approximately 2% in early trading, aligning with the negative sentiment in equities [1] Regional Market Performance - Japan's Nikkei 225 fell by 1.75%, Hong Kong's Hang Seng Index dropped by 0.74%, the Shenzhen Component lost 0.76%, and the Shanghai Composite eased by 0.22% [3] - New Zealand's Dow Jones NZ was the only major index to gain, edging up by 0.20% to 360.52 [3] US Market Influence - The declines in Asia followed a significant selloff on Wall Street, where the Dow Jones Industrial Average fell by 0.84%, the S&P 500 slid by 1.12%, and the Nasdaq Composite lost 1.9%, primarily due to a pullback in technology and AI-linked stocks [4] - The selloff coincided with the winding down of the earnings season and a focus on private data to assess economic health amid the ongoing US government shutdown [4] Employment Data - Challenger, Gray & Christmas reported that companies announced 153,074 job cuts in October, nearly tripling last year's total for the same month, with the technology and warehousing sectors being the main contributors [5] Cryptocurrency Market Dynamics - Demand for Bitcoin from digital asset treasuries, such as MicroStrategy, has noticeably slowed, contributing to a decrease in institutional appetite for Bitcoin [6] - Crypto ETFs have experienced significant outflows, contrasting with previous bullish trends during volatile price movements [6] Market Sentiment and Economic Indicators - The market is experiencing a 'reset' event, which has further reduced short-term risk tolerance, as evidenced by the continued retreat in altcoins in favor of Bitcoin, whose market cap dominance has increased [7] - Market confidence remains fragile amid the prolonged US government shutdown, which has halted official data releases, leading to reliance on mixed private indicators [7] Current Cryptocurrency Prices - Bitcoin is priced at $101,545, down 1.5% - Ether is at $3,320, down 2.5% - XRP is at $2.21, down 5.1% - The total crypto market cap stands at $3.47 trillion, down 1.9% [8]