Asian markets opened lower as investors grappled with a tech sector sell-off and plunging bitcoin prices. The Nikkei 225 dropped 2.3%, while the Hang Seng lost 1.8%. This follows a global tech rout, with semiconductor stocks and crypto-related equities particularly hard hit.

The downturn in bitcoin has been dramatic, with prices falling below $40,000, erasing much of the gains from earlier this year. This has triggered concerns about the stability of the broader crypto market, which has seen increased institutional investment.

Market analysts attribute the tech sell-off to rising interest rates and inflation fears. The Federal Reserve's hawkish stance has led to a re-evaluation of high-growth tech stocks, which are particularly sensitive to interest rate changes.

Looking ahead, investors will be closely watching the next Federal Reserve meeting and any new developments in the crypto regulatory space, as these factors could further influence market volatility.