Yesterday was the state funeral for former U.S. President Jimmy Carter, and the U.S. stock market was closed for the day. But emerging market stock indexes entered retracement territory on Thursday (1/9), the result of months of slumps over uncertainty about U.S. policy and China's growth prospects. Bitcoin led the decline, with the entire crypto market liquidating $370 million in 24 hours. News that the U.S. government has been approved to liquidate approximately 69,000 bitcoins confiscated from the "Silk Road" triggered market concerns.
Most emerging markets fell
The MSCI Emerging Markets Index fell 0.4%, down 10% since its October 2 high, according to Bloomberg. Samsung Electronics and Taiwan Semiconductor Manufacturing Co. led losses as the Biden administration plans new measures to extend semiconductor trade restrictions to much of the world.
The Chinese government's economic stimulus plan has fallen short of investor expectations, leading to a significant drop in the indices. Data released by China shows the economy is slowing down, with inflation pressures easing for the fourth consecutive month. Disappointment over China's stimulus measures and the sluggish start of the Chinese stock market this year have dampened market sentiment. Chinese tech stocks have the opportunity to post their largest weekly drop in seven weeks.
Stocks in Brazil and South Korea have also dragged down the MSCI index. These assets have been affected by Brazil's fiscal concerns and the impeachment and arrest of South Korean President Yoon Suk-yeol.
Ahead of Trump's inauguration on January 20, traders have become more cautious, as the outlook for his tariff plans triggered significant market volatility earlier this week.
The market is focusing on today's (1/10) upcoming non-farm employment report to further assess the robustness of the U.S. job market.
Bitcoin leads the decline, with $370 million liquidated across the network in the last 24 hours.
Reports indicate that the U.S. government has been approved to liquidate approximately 69,000 bitcoins seized from the 'Silk Road' (currently valued at $6.5 billion). If sales begin, it may lead to some price volatility in the bitcoin market in the short term, raising concerns over policy and market confidence.
(Source: The U.S. government has been authorized to sell nearly 70,000 bitcoins seized from the 'Silk Road')
Bitcoin continues to face pressure; although it attempted to return above 94K yesterday, it ultimately succumbed to the pessimistic pressure of market uncertainty, reporting at $92,499 before the deadline, with a 24-hour decline of 2.6%.
All top ten cryptocurrencies by market capitalization have declined. According to Coinglass data, $370 million worth of positions were liquidated in the last 24 hours, with $95.13 million in bitcoin and $67.76 million in ethereum being the largest.
This article discusses the decline in emerging markets, with bitcoin dropping to 92K, and concerns over selling pressure from the Silk Road first appeared in Chain News ABMedia.
