ASX Markets Look Up as Bitcoin Stumbles

The ASX 200 is expected to open slightly higher, even as global markets grapple with a sharp downturn in cryptocurrencies led by a steep fall in Bitcoin. The sudden pullback in digital assets has cooled risk appetite, pushing traders back toward more traditional and less volatile sectors.

Despite that broader uncertainty, several parts of the local market stand to benefit:

• Resources and mining: With commodity prices remaining resilient, major miners could help anchor the index. Investors often rotate into materials when riskier assets wobble, particularly during crypto-driven volatility.

• Energy stocks: Strong underlying demand and steady oil pricing may give the energy sector some support, offering a defensive counterweight to risk-off sentiment.

• Financials: Banks may see modest gains as markets stabilise, though broader caution could temper any sharp moves.

On the softer side:

• Tech and growth stocks: These tend to feel the pinch when risk sentiment drops. The crypto tumble may apply short-term pressure to high-growth names, especially those already trading at elevated valuations.

• Consumer discretionary: If investors stay jittery, spending-sensitive sectors may drift as households react to broader market signals.

With offshore markets still in flux, much of tomorrow’s tone will hinge on whether crypto steadies or continues to unwind. A calmer night overseas could set the stage for a more confident local session — but for now, investors are keeping one eye on Wall Street and the other on the Bitcoin chart.