KUALA LUMPUR, April 2 (Bernama) -- Bursa Malaysia reversed yesterday's gains to close lower on Thursday, with the key index settling off its lows, as optimism over a swift end to the West Asia conflict faded sharply following US President Donald Trump's speech this morning, which fuelled global risk-off sentiment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 10.60 points, or 0.62 per cent, to 1,698.30 from Wednesday's close of 1,708.90. The benchmark index opened 3.14 points firmer at 1,712.04, and moved between 1,688.89 and 1,712.80 throughout the day. Market breadth was negative with 744 losers outpacing 374 gainers, while 436 counters were unchanged, 1,094 untraded, and 11 suspended. Turnover slipped to 3.20 billion units worth RM3.50 billion from yesterday’s 3.58 billion units worth RM3.56 billion.
Cryptocurrencies fell sharply alongside global equities as renewed geopolitical tensions triggered a risk-off shift across markets, reversing recent optimism.
Crypto Slides as Geopolitical Risks Intensify
Bitcoin dropped as much as 2.8% to below US$66,300 during Asian trading, while broader crypto markets saw deeper losses:
- Ethereum fell up to 4.7%
- Solana declined 5.1%
The selloff followed comments from Donald Trump indicating more aggressive military action against Iran, dampening earlier hopes of a near-term resolution.
Risk Assets Retreat, Oil Surges
The renewed escalation sparked a broad retreat from risk assets:
- MSCI Asia Pacific Index fell 1.7%, reversing recent gains
- Brent crude surged over 5% to above US$106 per barrel, reflecting heightened supply concerns
Markets have been increasingly sensitive to geopolitical developments, with asset prices whipsawing in response to headlines.
Bitcoin Tracks Equities, Not Safe Haven
Despite earlier resilience, bitcoin is now moving more in line with equities, rather than acting as a traditional hedge.
Market participants note that while crypto had recently shown reduced sensitivity to macro news, it is still ultimately driven by risk sentiment and liquidity conditions.
Longer-Term Pressure Remains
Bitcoin’s broader trend remains under pressure:
- Down ~45% from its October peak above US$126,000
- Demand has remained weak following the earlier selloff
- March performance was modestly positive (+2%), but insufficient to reverse the broader downtrend
Meanwhile, traditional safe-haven assets have also shown unusual behaviour, with gold declining more than 11% in March, reflecting inflation-driven volatility.
Outlook: Volatility Tied to Geopolitics
Near-term direction for crypto markets will likely depend on:
- Developments in the Iran conflict
- Movements in oil prices and inflation expectations
- Broader risk appetite across global markets
A prolonged conflict could continue to pressure risk assets, including cryptocurrencies.
Investor Takeaways
- Bitcoin fell below US$66,000, with altcoins seeing sharper declines amid risk-off sentiment.
- Escalating geopolitical tensions triggered selloffs in both equities and crypto markets.
- Bitcoin is behaving more like a risk asset than a safe haven in the current environment.
- The token remains ~45% below its October peak, highlighting ongoing structural weakness.
- Market direction will depend heavily on geopolitical developments and energy market stability.
Comments
Post a Comment