Crypto-related stocks in Asia see volatile trading amid bitcoin recovery

Crypto-related stocks in Asia see volatile trading amid bitcoin recovery

With prices falling this week, investors in the traditional market have pulled out of the crypto sector from listed companies.

Bitcoin (BTC), Ether (ETH), and Terra's LUNA weren't the only major assets to suffer losses for investors this week, as the broader crypto market lost as much as 16% of total capitalization on Thursday alone.

Earlier this week, Bitcoin fell on inflation concerns and contagion risks from the freefall of TerraUSD (UST), a stablecoin pegged to the U.S. dollar. Bitcoin fell as low as $24,000 on Thursday morning before recovering overnight.

This risk-off reaction sent crypto company stocks plummeting. Japan's Monex (8698) ended the day 10% below its opening price Thursday, as did Hong Kong-based OKG Technology Holdings (1499), which operates blockchain explorer OKLink and provides custody services for cryptocurrencies. Hong Kong-listed BC Technology Group (0863), on the other hand, was down 15% Friday morning.

BC Technology Group, which operates several businesses, is the parent company of crypto brokerage and lending firm OSL. Monex owns crypto exchange Coincheck and trading platform TradeStation, among others.

Monex and OKG rallied later in the session, rising more than 1%, while bitcoin gained 13.5% to regain the $30,000 price level.

Elsewhere, shares of Hong Kong-based Meitu (1357) rose 1.1% on Friday after briefly falling on Thursday. The software company bought more than $100 million worth of bitcoin and ether in 2021.