Bitcoin Holds $91k, Nikkei Prints After Wall Street Rally
Crypto reporter
Shalini Nagarajan
Crypto reporter
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Bitcoin remained pegged around $91,000 on Tuesday as traders watched the Japanese stock market explode to new records and viewed US macro headlines as the next real trigger for the crypto direction.
In Asia, Japan's Nikkei climbed 3.6% to 53,814.79, an all-time high, while the Topix gained 2.4% to 3,599.31, a record gain.
The move came after Tokyo's public holidays played a role in Wall Street's recent rally and traders were buoyed by speculation that Prime Minister Sanai Takaichi could call a snap election that would keep fiscal spending in play.
A weaker yen fueled the rise as overseas revenue boosted prices for export-heavy companies. Chip and car names have led the charge, and the breadth appears to be lopsided, with 209 of the Nikkei 225 stocks higher, telling you investors are ready to buy.
Market overview
Bitcoin: $91,026, down 0.9% Ether: $3,096, down 1.6% XRP: $2.05, down 1.8% Total crypto market cap: $3.18 trillion, down 1.3%.
Powell's investigation is taking place even as markets remain on edge.
Elsewhere in the region, markets opened with moderate risk bidding. From the screenshot on the screens, the Shanghai 0.24%, the SZSE component 0.60%, and the Hang Seng rose 0.14%, although China A50 fell 0.77%, reminding that large-cap China was more cautious.
Wall Street set the tone overnight. The S&P 500 and Dow closed at record highs on Monday, and tech names and Walmart were among the leaders as traders largely focused on the Justice Department's criminal investigation into Federal Reserve Chairman Jerome Powell.
Powell's story still hangs in the ratings. He said the administration had threatened him with criminal charges for testifying in connection with the renovation of the Fed's headquarters, a pretext to pressure the central bank to cut interest rates quickly.
Inflation data can set the tone for risky assets.
For crypto, the macro calendar is more important than the noise. The US CPI report is due on Tuesday, January 13, and traders will use it to price the Fed's next rate hike, followed by the Beige Book on January 14, and the Fed's policy meeting from January 27-28.
Bitcoin appears to be at a crossroads, according to Coinley CEO Robin Singh, with prices likely to enter a period of consolidation for several months despite the CLARITY Act vote this week.
“Bitcoin's price has moved very little at the beginning of the year, and the overall crypto sentiment has been treading water for some time now,” he said. “The US Fed may have a modest impact on rate cuts, especially if they do it in the early months of the year, as the market seems very hesitant to that possibility, and it may not be worth that much in Bitcoin.”
Bitcoin's stall near $91,000 reflects that setup. Rate expectations, dollar moves and AFF-led flows shift quickly around inflation, and a supported position tends to highlight the first move after the data arrives.
Oil was also left on the front burner. Crude hit a seven-week high, with broader risk talk lingering over geopolitics and the economy as traders eyed unrest in Iran and the threat of supply disruptions.
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