Once again, crypto crashed during Asian trading hours

Bitcoin (and especially Ether) crashed on Monday morning at the same time that the Japanese stock market index Nikkei 225 as well as the South Korean stock market index Kospi suffered a heavy blow.

For Japanese traders, the stock market crash was so great that comparisons were made with the so-called ‘Black Monday’ of 1987. The Taiwan stock market had its worst day in 57 years.

Afterwards, Bitcoin, Ether and all other major altcoins were able to hold up better during European trading hours, although losses remained very high.

Crypto traders and analysts were not surprised that, once again, it was during Asian trading hours that most of the crypto action took place.

🚨BREAKING: 🇯🇵 Japan stock market suffers worst losses in history.

The Nikkei 225 stock index closed at 31,316.62 points today, dropping by 4,568.02 points / 12.7%.

This is largest single day point drop in index’s history. pic.twitter.com/BeBCDuupHR

— Statistics only (@Entertainm97702) August 5, 2024

Plunge

The importance of crypto traders from South Korea and Japan has long been a known fact in the world of digital currencies. This has become clear once again in recent weeks as Bitcoin continues to plunge during Asian trading hours on the stock exchange.

The strengthening Japanese Yen did not do Bitcoin much good either. The local currency has been climbing in recent weeks after the Japanese central bank finally raised interest rates for the first time in decades.

The Crypto markets have seen a major meltdown. From a wider sell-off to rising tensions in West Asia - what are the various reasons that have led to this downfall? @Manisha3005 brings the details.#crypto #middleeast #bitcoin #ethereum #cryptocurrency #markets #cnbctv18digital pic.twitter.com/jM5FuJ2E6y

— CNBC-TV18 (@CNBCTV18News) August 5, 2024

Japan now has around 500,000 active crypto traders who buy and sell every day. In South Korea, that number is estimated at around 800,000 (for example, in the first quarter of 2024, the Korean Won was the most heavily traded currency in crypto, not the US dollar). Many Asian traders decided on Monday to temporarily exit crypto after the bloodbath on the stock exchanges, which further increased volatility in crypto markets.