Bitcoin slides towards $75,000 as Asia stocks soften and metals swing

The world’s largest cryptocurrency slipped after failing to hold higher technical levels, with trading volumes rising as short-term holders moved to lock in gains accumulated during the earlier rally. Market participants pointed to a mix of profit-taking, tighter global financial conditions and cautious positioning ahead of major economic signals as drivers behind the retreat. The move brought bitcoin closer to a zone widely watched by traders for potential support, while derivatives data indicated elevated funding rates unwinding from stretched levels.

Asian equity benchmarks also edged lower, led by declines in technology and export-oriented shares. Markets in Hong Kong, mainland China, Japan and South Korea reflected investor unease over slowing global demand signals and persistent uncertainty around interest-rate trajectories in major economies. Semiconductor stocks and internet platforms faced selling pressure, tracking overnight weakness in US peers, while broader indices struggled to find direction amid thin liquidity in parts of the region.

Metals markets added to the volatility picture. Copper prices swung sharply as traders weighed mixed indicators from manufacturing surveys against ongoing supply constraints linked to disruptions in major producing regions. Aluminium and nickel showed similar intraday fluctuations, reflecting sensitivity to both macroeconomic cues and inventory data from key exchanges. Gold, often treated as a defensive asset, traded unevenly as higher real yields in developed markets competed with safe-haven demand generated by equity market softness.

The parallel moves across digital assets, equities and commodities highlighted a shift away from the strong risk-on sentiment that characterised parts of the previous quarter. Analysts said bitcoin’s correlation with technology stocks has strengthened again during periods of macro stress, reversing phases when the cryptocurrency traded more independently. This alignment has left digital assets exposed to the same forces affecting growth-oriented equities, including expectations around monetary policy and corporate earnings momentum.

Institutional flows remained a focal point for crypto markets. Exchange-traded products tied to bitcoin continued to attract attention after strong inflows earlier in the year reshaped market structure and liquidity patterns. While longer-term allocations from asset managers and wealth platforms have supported prices over time, short-term moves have been increasingly influenced by hedge funds and proprietary traders adjusting leverage and exposure in response to volatility spikes.

Regulatory developments also formed part of the backdrop. Authorities in several Asian financial centres have reiterated their intent to tighten oversight of digital-asset trading platforms, focusing on consumer protection, custody standards and disclosures. Although these measures are largely aimed at improving market integrity rather than restricting participation, traders said the policy signals have encouraged a more cautious stance among retail investors in the region.

In equity markets, Asia’s exporters faced additional headwinds from currency movements. A firmer US dollar pressured several regional currencies, raising concerns about imported inflation while offering limited relief to manufacturers due to subdued external demand. Central banks in the region have signalled a preference for stability, but policymakers remain constrained by divergent growth conditions and the need to manage capital flows.

Commodity strategists said metals volatility reflects a market caught between conflicting narratives. On one hand, energy-transition themes and infrastructure spending continue to underpin long-term demand for copper and other base metals. On the other, slower growth in major consuming economies and elevated borrowing costs have dampened near-term consumption. The result has been sharp price swings as traders react to incremental data points rather than clear directional trends.

For bitcoin, technical analysts noted that the slide towards $75,000 has brought prices closer to key moving averages watched by both systematic funds and discretionary traders. A decisive break below these levels could invite further selling, while a stabilisation may encourage bargain-hunting from longer-term holders who view pullbacks as entry opportunities. Volatility indicators suggest options markets are pricing in wider near-term ranges, reflecting uncertainty over direction.