|

Asia Market Open: Bitcoin Slips Below $110K as Fed Cut Leaves Traders Guessing Next Move

🇺🇸

Good morning, Asia. Before the bell, markets are struggling to seek out path after the Federal Reserve cut rates as anticipated, however provided little readability on what comes subsequent.

Bitcoin slipped beneath $110,000, extending losses as merchants turned cautious following Jerome Powell’s measured tone.

Asian equities opened blended. Equities in Japan and Australia dipped, monitoring weak spot in US contracts after the S&P 500 reversed earlier positive aspects.

Wall Street ended blended as Meta warned of upper 2026 bills and Microsoft’s Azure development upset traders.

Market snapshot

  • Bitcoin: $110,622, down 1.7%
  • Ether: $3,930, down 1.7%
  • XRP: $2.58, down 1.3%
  • Total crypto market cap: $3.83 trillion, down 1.1%

Fed Delivers 25bp Cut as Powell Warns Data Gaps Could Skew Policy Path

The Fed cut its benchmark rate by 25 basis points to a spread of three.75% to 4%, its first transfer in months, however Powell urged restraint on anticipating one other discount this yr. He mentioned policymakers are reassessing dangers to the labor market and can stay cautious, particularly as the federal government shutdown limits entry to financial information.

“The minimize was priced in — that was very clear to me,” mentioned Maja Vujinovic, CEO and co-founder of Digital Assets at FG Nexus. “Lots of people in my crypto chats have been anticipating a little bit little bit of a bump, however the market retains promoting off. Powell’s stance got here throughout as much less dovish, and merchants have been hoping for a sign of extra aggressive or frequent future cuts.”

The central financial institution’s assertion acknowledged the information blackout attributable to the shutdown, warning it may complicate future selections if job and inflation studies stay unavailable. Markets rapidly pared bets on additional easing, pushing two-year Treasury yields up 11 foundation factors and giving the greenback a elevate.

Fed Cut Fails to Ignite Rally as Powell Strikes a Guarded Note

In Asia, traders will look ahead to the Bank of Japan’s coverage determination on Thursday, the place charges are broadly anticipated to remain unchanged at 0.5%. The assembly would be the first beneath Prime Minister Sanae Takaichi, who’s seen as supportive of continued financial easing.

Meanwhile, diplomatic focus shifts to South Korea, the place US President Donald Trump and China’s Xi Jinping are anticipated to satisfy later in the present day. The two leaders are making ready to finalize a restricted reconciliation that would pause new tariffs and restart commerce in key commodities such as soybeans.

Fed’s December QT Wind-Down Seen as a Key Catalyst for Broader Risk Assets

Macro uncertainty remains to be high, Vujinovic mentioned. “Many traders are taking earnings at these resistance ranges and lowering publicity till there’s extra readability from each the Fed and the broader world financial system,” she mentioned.

Greg Magadini, director of derivatives at Amberdata, mentioned the coverage shift may nonetheless favor crypto as soon as liquidity circumstances ease.

“We’re nonetheless within the early phases of a chopping cycle and easing liquidity will assist push costs increased and produce volatility again down for BTC,” he mentioned.

He added that the tip of the Fed’s quantitative tightening (QT) plan in December ought to help broader danger sentiment. “FOMC coming in as anticipated helps reinforce the decrease volatility setting,” Magadini mentioned. “As lengthy as liquidity stays simple, we anticipate crypto to rally into year-end.”

For now, although, uncertainty dominates the market. Traders are adjusting to a Fed that simply turned barely extra cautious, a authorities that’s partially shut down, and an information void that leaves markets guessing what comes subsequent.

The put up Asia Market Open: Bitcoin Slips Below $110K as Fed Cut Leaves Traders Guessing Next Move appeared first on Cryptonews.

Similar Posts