Bitcoin Dips Below $90K, Wall Street Recovery Raises Asian Risk Sentiment
Crypto reporter
Shalini Nagarajan
Crypto reporter
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Bitcoin fell below $90,000 on Friday as Asian shares posted modest gains after the Bank of Japan held rates on hold, as investors weighed softer US tariff talk alongside signs of US economic strength.
MSCI's broadest index of Asia Pacific shares outside Japan rose 0.4%, while Japan's Nikkei added 0.3%.
The Bank of Japan left interest rates unchanged at 0.75% after concluding its two-day policy meeting on Friday.
A rate hike in December pushed borrowing costs to their highest level in three decades after policymakers estimated the likelihood of meeting the 2% inflation target had improved.
Market overview
Bitcoin: $89,795, down 0.1% Ether: $2,960, down 1.7% XRP: $1.91, down 1.6% Total crypto market cap: $3.11 trillion, down 0.3%.
Wall Street extends recovery after Trump eases tariff talks
Greg Magadini, Director of Derivatives at Amberdata, said: “The biggest risk today for global risk-assets, including BTC and altcoins, is around debt sustainability. If yields are too high, the financial value (and investment attractiveness) of risk-assets will require lower prices.”
On Wall Street, stocks extended their gains for a second session on Thursday after President Donald Trump backpedaled earlier threats of tariffs on European goods and signaled that he would forcefully seize control of Greenland.
The S&P 500 rose 0.5% and the Nasdaq Composite added 0.9%, as investors flocked to stocks after a midweek rout.
The rally widened as well, with the smaller Russell 2000 closing at a record high, although the week remained bullish, while the S&P 500 and Nasdaq were down 0.4% for the week and the Dow was little changed.
Earnings season flows like a fresh market test
In rates and FX, the dollar index held near 98.329, hovering at its lowest level of the year after its biggest one-day decline in six weeks.
Fed funds futures show a 96% chance the Federal Reserve will keep rates on hold at its January 28 meeting, with the 10-year Treasury yield as high as 4.247%.
Commodities remained in focus as precious metals entered record territory, with gold up 0.3% to $4,951.47 an ounce and silver up 1.7% at $97.85.
South Korea led the regional movement, with the Kospi rising 1.1% for a third day after breaching 5,000 for the first time, as President Lee Jae-myung pledged to target market reforms and tax measures in the so-called Korean recession.
Tech also kept traders busy after Intel's quarterly revenue and profit fell short of estimates, sending shares down 11% in afternoon trading, a reminder that earnings season can still change sentiment quickly.
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