Panic Selling Wipes $70 Billion in ASX’s Worst Day
Synopsis
The Australian financial markets were in the grips of fear on Friday as the ASX 200 tanked by two per cent, wiping almost $70 billion from shareholders’ pockets. The sell-off, which analysts called spreading panic, was worst for the technology and real estate sectors. Amid the global exodus from risk assets, RBA Governor Michele Bullock justified the recent rate rise in Canberra, cautioning that inflation continues to be a tough battle. And while Bitcoin also lost 20 per cent this week, Australians are in for more turbulence in what have soon become the worst trading sessions in almost a year.
SYDNEY — The Australian share market has suffered through its worst day of trading in almost a year as “panic selling” wiped out about $70 billion worth of value. On Friday, it dropped 2% to close at 8,709 points on the benchmark ASX 200 index, a bleak conclusion to a week in which global investors abandoned risky assets for safe havens such as gold.
Every sector in the market closed down. The sell-off was fed by a “triple threat” of concerns: higher interest rates at home, slowing in the technology sector globally and a huge crash in the cryptocurrency market. Analysts said the relatively rapid nature of the fall spanning multiple markets simultaneously has been highly unnerving for local investors. Is this a blip, or the beginning of a broader downturn?
Tech and Travel Stocks Take Brunt of the Fall
The tech sector was the day’s biggest loser as the local tech index sank more than 5% to a low not seen since 2023. The “tech wreck” is being spurred by global concerns that new artificial intelligence tools are starting to compete with more established software and data services companies. Big names including WiseTech Global and Megaport saw their stocks fall sharply as investors began to bet against future growth.
But the largest individual closure was Web Travel Group. The company’s shares plunged nearly 30 % in a single session after it was disclosed that tax agents in Spain are auditing its European subsidiary. Other heavyweights like REA Group also fell heavily, down by 7.8% after reporting a fall in the levels of houses listed for sale on its website.
Bullock Defends Rate Increases in Face of Market Upheaval
As the market plummeted, Reserve Bank of Australia (RBA) Governor Michele Bullock was in Canberra on Thursday defending the board’s move to hike interest rates to 3.85% earlier this week. During an appearance before an economics committee, Ms. Bullock stuck to her guns, noting that her priority is to drive inflation back down into the RBA’s 2-3% target band.
She cautioned that if inflation doesn’t cool off soon, it would have been off target for a combined six years by 2028. Although she conceded that higher rates were painful for people with mortgages, she suggested that allowing inflation to remain high would be even more damaging for the economy in the long run. The Commonwealth Bank then followed suit by announcing it would lift some of its rates to 4.70% in the wake of her comments, becoming the second “Big Four” bank to pass on the rate hike to its savings customers.
Giant Bitcoin and Mining Companies Suffer
And the pain hadn’t been confined to traditional stocks. Bitcoin plummeted further, ending the week down more than 20%. The world’s largest cryptocurrency is currently trading at nearly half the peak price it hit in October 2025. Though it experienced a brief, slight “dead cat bounce” late Friday, analysts warn that if Bitcoin fails to hold at the $58,000 level there could be more selling ahead.
Investors in mining witnessed a dose of drama, and decline. Rio Tinto shares closed the day flat after the company officially abandoned its multibillion-dollar merger with rival Glencore. Although the deal would have created the world’s largest mining company, Rio concluded that it couldn’t negotiate a price that was fair to its shareholders. Meanwhile, uranium miners including Deep Yellow and Paladin Energy were among the day’s biggest losers, down more than 10% as the “sell everything” feeling took hold.
Key Highlights
- The ASX 200 fell 2 per cent, losing $70 billion in its worst day since April 2025.
- The travel company Web Travel Group plummeted 30 per cent after news of a tax audit in Spain.
- RBA Governor Michele Bullock defended raising interest rates amid warnings that inflation needed to be defeated.
- Bitcoin is down almost 50% from its high point in October 2025.
- Gold futures leapt 2.7 per cent as investors sought safety in the midst of market chaos.
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