Latest news with #S.Birruntha
New Straits Times
23-06-2025
- Business
- New Straits Times
Bitcoin rebounds after weekend sell-off driven by 'whale' liquidation moves
S. Birruntha KUALA LUMPUR: The sharp weekend sell-off in cryptocurrencies may have been intensified by strategic selling from large holders, or "whales", aiming to trigger liquidations in the derivatives market. Tokenize Xchange founder and group chief executive officer Hong Qi Yu said the sudden dip, which followed reports of a United States strike on Iranian nuclear sites, created an opportunity for such players to exploit market panic. "Whales may have taken advantage of the panic to trigger a liquidation cascade," he told Business Times. Bitcoin and major altcoins fell sharply over the weekend amid rising geopolitical tensions, erasing recent gains and sending the broader crypto market into the red. However, the correction proved short-lived. The market rebounded late Sunday, with Bitcoin recouping much of its losses as fears of a broader conflict subsided. Hong remains optimistic about the market's near-term outlook, viewing the pullback as temporary and not the start of a prolonged downtrend. "I remain bullish on the overall crypto market, with Bitcoin leading the way. The US$100,000 level appears to be well supported, and I expect to see a recovery within the next week, with the possibility of Bitcoin reaching a new all-time high soon," he said. Hong emphasised that the view is his personal opinion and not financial advice. He added sharp price swings are not unusual during periods of geopolitical tension, citing Bitcoin's performance during the start of the Ukraine-Russia conflict. "For instance, when the Ukraine-Russia war broke out, Bitcoin fell from around the US$45,000 level to the US$30,000 range before staging a relief rally," he said. Industry players believe the weekend volatility is unlikely to derail the broader bullish trend, which remains supported by long-term adoption and institutional interest in digital assets. SPI Asset Management managing director Stephen Innes said the sell-off reflects classic flight-to-safety behaviour, where "when bombs drop, liquidity gets pulled." "Crypto, still seen as risk-on, got hit alongside equities," he said. "Historically, crypto hasn't been a reliable wartime hedge — it trades more like high-beta tech than digital gold during shock events. "With volatility elevated and macro uncertainty high, more downside's possible if the conflict escalates — but expect dip buyers to circle fast if tensions cool." Another industry observer said the crypto market tends to react sharply to conflict-related headlines, often mirroring the broader market's risk-off behaviour. However, he noted that in previous geopolitical crises, Bitcoin and other digital assets have also shown resilience, often recovering faster than traditional equities. "This is partly due to crypto's decentralised nature and its growing perception as a hedge against fiat currency instability over the medium term," he said. "But still, macro factors such as inflation trends, interest rate expectations, and institutional inflows remain more influential in shaping the crypto recovery narrative. "If geopolitical tensions stabilise or the market begins to price in their impact, we could see crypto regain momentum, especially if Bitcoin holds above key psychological levels," he added. Market analysts said while crypto markets often suffer steep declines during times of war or geopolitical escalation, their reactions are not always linear. Assets like Bitcoin and Ethereum typically fall in the immediate aftermath of such developments, reflecting a broader wave of investor risk aversion. Both tokens recorded notable losses following the recent reports of US military action targeting Iranian nuclear sites. This behaviour reflects crypto's continuing status as a high-risk asset class, similar to equities, which investors tend to offload during periods of heightened uncertainty. During such times, capital often rotates into traditional safe havens such as US Treasuries, gold and the US dollar, assets perceived to offer stability in volatile environments. As a result, cryptocurrencies don't always serve as a reliable hedge in the short term. However, if the situation stabilises or the market adjusts, crypto assets have often shown an ability to rebound. One recent example was the partial recovery seen in Bitcoin following heightened tensions between Israel and Iran earlier this year.
New Straits Times
20-05-2025
- Business
- New Straits Times
Malaysia's trade hits record high in April, economists see room for optimism
S. Birruntha KUALA LUMPUR: Malaysia's trade performance maintained its upward trajectory in April, with both exports and imports posting strong double-digit growth, a development economists view as a promising start to the second quarter of 2025. According to the Ministry of Investment, Trade and Industry (Miti), trade rose 18.2 per cent year-on-year (YoY) to RM261.94 billion, the highest monthly value recorded since August 2022. Exports increased by 16.4 per cent to RM133.56 billion, while imports climbed 20 per cent to RM128.37 billion. This marked the 60th consecutive month of trade surplus, reaching RM5.19 billion. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest export figures far exceeded expectations, with the April performance outpacing the consensus estimate of 7.5 per cent growth. He said this encouraging trend could set a strong base for the second quarter of 2025 (2Q25), although the sharp increase may also be linked to front-loading activities by trade partners. "Exports to the US, which accounted for 14.4 per cent of total exports in April, rose 45.6 per cent, albeit slightly lower than the 50.8 per cent growth recorded in the previous month," he told Business Times. "Other jurisdictions such as Taiwan, Thailand and Singapore also posted notable gains, with growth of 29.9 per cent, 17.8 per cent and 12.4 per cent respectively in April," he added. Afzanizam cautioned, however, that uncertainties tied to US trade policy could influence future performance. He noted that negotiations with the US remain fluid and the 10 per cent universal tariff rate is still in effect. He said import tariffs could raise the cost of doing business and potentially lead to higher prices in both the US and China as both countries continue to retaliate with new measures. "Demand in the US may weaken, which could translate into fewer export orders. This makes it crucial for Malaysian companies to diversify their customer base," he said, adding that agencies such as Miti and Matrade play a vital role in helping businesses access new markets. Afzanizam also flagged risks related to excess supply from China, which could negatively affect local industries, particularly in sectors such as iron and steel, plastics, ceramics, solar panels and textiles. Despite these challenges, April marked Malaysia's 16th straight month of YoY export growth since January 2024. Miti said the expansion was largely driven by strong demand for manufactured goods, particularly electrical and electronic (E&E) products, which alone saw an increase of almost RM16 billion. Palm oil and related agriculture products also contributed significantly to export growth. Strong export growth was registered to major trading partners, including Asean, China, the United States, the European Union and Taiwan, which posted a new record high. Exports to free trade agreement partners also rebounded sharply. Meanwhile, UOB economists Julia Goh and Loke Siew Ting attributed the strong April performance to accelerated shipments ahead of anticipated US tariffs, under a 90-day reciprocal tariff pause. They said re-exports surged 46 per cent — the highest since September 2022 — outpacing domestic exports. However, they cautioned that the momentum may not be sustained. "Bank Negara has indicated that the front-loading of exports will likely normalise in the coming months as inventories are drawn down and trade flows stabilise," they said in a research report. The economists highlighted Malaysia's deep exposure to the global E&E supply chain, noting that semiconductors make up 40 per cent of the nation's total exports and accounted for 23 per cent of its shipments to the US in 2024. "Malaysia ranks as the ninth-largest E&E exporter globally and is the third-largest source of electrical machinery to the US in Asia after China and Taiwan," they said. In light of these risks, UOB is maintaining its export growth forecast for 2025 at 3.8 per cent, down slightly from 4.5 per cent in 2024. Nonetheless, the World Trade Organisation recently reported that Malaysia improved its global trade ranking to 24th position in 2024 from 26th in 2023, a testament to the country's growing trade relevance. To strengthen resilience and support continued growth, Miti and its export promotion arm Matrade are ramping up efforts to diversify markets. Initiatives such as international trade fairs, export acceleration missions, business matching programmes and the Madani Digital Trade platform are actively helping Malaysian exporters expand their global reach.
