Tech Stocks And Bitcoin Plunge Amid Asian Market Turmoil

Markets around the globe were rattled on February 5, 2026, as a wave of heavy selling swept through technology stocks and cryptocurrencies, triggering steep losses in Asia and reverberating across financial sectors worldwide. South Korea’s Kospi index took a particularly hard hit, plunging nearly 4%, while bitcoin tumbled as much as 8%—its sharpest drop in months—trading near $71,000 after briefly crashing to about $69,000, its lowest level since November 2024, according to CoinDesk.

The dramatic downturn was felt most acutely in South Korea, where shares in the nation’s largest tech players suffered significant blows. Samsung Electronics, a bellwether for the local market, saw its stock price fall 5.9%. Meanwhile, chipmaker SK Hynix plunged 6.7%. The Kospi’s 3.9% drop to 5,163.57 underscored the volatility gripping markets, as reported by the Associated Press.

Other Asian markets were not immune to the turbulence. Japan’s Nikkei 225 shed 0.9% to close at 53,818.04, while Hong Kong’s Hang Seng index managed to eke out a 0.1% gain, closing at 26,885.24 after recovering from earlier losses. The Shanghai Composite index in China slipped 0.6% to 4,075.92. Australia’s S&P/ASX 200 declined 0.4% to 8,889.20, and Taiwan’s Taiex lost 1.5%.

The sell-off wasn’t confined to Asia. In Europe, Germany’s DAX slipped 0.2% to 24,568.67, Britain’s FTSE 100 dropped 0.3% to 10,371.83, and France’s CAC 40 edged up 0.2% to 8,278.99. U.S. futures were mixed, with the S&P 500’s future up 0.2% and the Dow Jones Industrial Average’s future down 0.1%.

On Wall Street, the S&P 500 fell 0.5% on February 4 for its fifth loss in six days, while the Dow rose 0.5% and the Nasdaq composite sank 1.5%. Technology stocks weighed heavily on the S&P 500 for a second straight day, with more than twice as many stocks rising as falling within the index. Yet, the outsized influence of tech giants meant the broader market couldn’t escape the sector’s drag.

Advanced Micro Devices (AMD) was among the most notable casualties, with its shares plunging 17.3%. This came despite the chipmaker reporting a stronger-than-expected profit for the latest quarter and offering a revenue forecast for early 2026 that topped analyst expectations. Apparently, investors, perhaps spoiled by the stock’s doubling over the previous 12 months, were looking for even more.

Uber Technologies also disappointed, with its shares falling 5.1% after reporting quarterly results that missed estimates and naming a new chief financial officer. Conversely, Super Micro Computer bucked the trend, soaring 13.8% after delivering a quarterly profit that exceeded expectations. Meanwhile, Walmart edged up by 0.2%, a day after its market value surpassed the $1 trillion mark—a milestone achieved by only a handful of tech titans like Nvidia and Apple, both valued at over $4 trillion.

Bitcoin’s woes were compounded by comments from U.S. Treasury Secretary Scott Bessent, who told the House Financial Services Committee that he lacked the authority to order banks to buy cryptocurrencies. This admission, reported by the Associated Press, sent ripples through the crypto market, contributing to the steep sell-off. Other digital currencies followed suit, and the mood among crypto investors was decidedly somber.

The turbulence in financial markets was mirrored in the commodities sector. Oil prices slumped more than $1 per barrel, with U.S. benchmark crude falling $1.05 to $64.09 and Brent crude dropping $1.11 to $68.35. Precious metals experienced their own roller coaster, as gold inched up 0.2% while silver tumbled 4.6%. The volatility comes as investors seek safer havens amid concerns over tariffs, a weakening U.S. dollar, and mounting government debt. But, as some critics have pointed out, gold and silver prices may have risen too rapidly and were due for a correction.

Currency markets also saw movement, with the dollar strengthening to 157.03 Japanese yen from 156.88 yen, and the euro slipping to $1.1805 from $1.1809.

Against this backdrop of market jitters, South Korea’s cryptocurrency sector faced its own reckoning. On February 4, the country’s Fair Trade Commission dispatched two investigators to Bithumb’s Seoul headquarters to probe advertising claims made by the crypto exchange. According to Yonhap’s EInfoMax service, regulators are scrutinizing Bithumb’s assertions from March and April 2025 that it boasted “the highest level of liquidity in the domestic crypto exchange sector.”

The investigation comes at a time of fierce competition between Bithumb and its chief rival, Upbit. Data from CoinGecko, cited by KBS, shows Upbit dominated the Korean won trading market last year with a 68% share, while Bithumb held 28%. The commission is concerned that Bithumb’s liquidity claims may be exaggerated or misleading, as reported by Chosun Ilbo. Under the Fair Labelling and Advertising Act, companies found guilty of false or exaggerated advertising can face fines and other disciplinary measures.

The watchdog is also considering a separate investigation into a 2025 promotional giveaway run by Bithumb. The promotion offered new customers about $70 if they started using the exchange’s application programming interface (API), a software tool that allows users to access the platform outside its app or website. However, after more than 50,000 people signed up, Bithumb reportedly changed the eligibility criteria midway through the event, resulting in about 30,000 participants missing out on the promised cash handouts.

Bithumb’s regulatory troubles come as it eyes a landmark public offering in New York later this year—a move that would make it the first South Korean crypto exchange to list in the U.S. Upbit, meanwhile, is preparing for a merger with domestic tech giant Naver, signaling an intensifying race for dominance in the country’s digital asset market.

The stakes are high for both exchanges. The Fair Trade Commission’s probe could lead to fines or other penalties if Bithumb is found to have misled consumers. As competition heats up and scrutiny intensifies, the outcome of these investigations may well shape the future of South Korea’s crypto landscape.

For now, investors and industry watchers are left to ponder the implications of a day marked by sharp declines, regulatory uncertainty, and shifting fortunes in both traditional and digital markets. The coming weeks will reveal whether the turbulence is a temporary blip or a sign of deeper shifts in the global financial order.