Asia Market Open: Bitcoin Dips Below $90K, Wall Street Rebound Boosts Asia’s Risk Sentiment
Bitcoin saw a minor drop below the $90,000 mark on Friday, as Asian equities experienced modest gains following the Bank of Japan’s decision to maintain interest rates. Investors are currently analyzing mixed signals from the U.S., including softer tariff discussions and indicators of economic resilience.
Market Snapshot
- 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%
Asian Stock Market Performance
The MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.4%. Meanwhile, Japan’s Nikkei Index increased by 0.3%, buoyed by the central bank’s decision regarding interest rates. The Bank of Japan opted to keep its policy rate steady at about 0.75%, following a rate hike in December that marked the highest borrowing costs in three decades. This decision was influenced by an improved outlook on achieving the 2% inflation target.
Nikkei Asia reports: The Bank of Japan revised its inflation forecast upwards while maintaining its policy rate.
Wall Street Rebounds as Tariff Rhetoric Eases
On Wall Street, equities extended their rebound after President Donald Trump softened his stance on proposed tariffs on European imports and dismissed ideas of taking Greenland by force. The S&P 500 increased by 0.5%, and the Nasdaq Composite gained 0.9%, as investors returned to risk assets after midweek uncertainties.
Additionally, the small-cap Russell 2000 closed at a record high, although the week remained volatile, with the S&P 500 and Nasdaq down by 0.4% and the Dow remaining mostly unchanged.
Commentary on Debt Sustainability Risks
Greg Magadini, director of derivatives at Amberdata, highlighted a significant concern regarding the sustainability of debt for global risk assets, including cryptocurrencies such as Bitcoin and altcoins. He stated, "The biggest threat today for global risk-assets is around debt sustainability. If yields rise too much, the cost of financing will make risk-assets require lower prices."
Earnings Season: A Fresh Market Challenge
The financial landscape is also set to face a new challenge as earnings season approaches. In the rates and foreign exchange (FX) markets, the dollar index hovered around 98.329, remaining near its lowest levels this year, having experienced its largest one-day drop in six weeks. Futures indicate a 96% probability that the Federal Reserve will keep interest rates unchanged in the upcoming Jan. 28 meeting. Additionally, the 10-year Treasury yield ticked up to approximately 4.247%.
Commodities remained a focal point, with precious metals reaching new record highs; gold was up by 0.3% to $4,951.47 per ounce, while silver gained 1.7%, reaching $97.85.
South Korea Leads Regional Gains
South Korea showed notable market performance, with the Kospi index rising by 1.1% for the third consecutive day, marking its first ascent above 5,000. This milestone reflects President Lee Jae Myung’s commitment to implementing market reforms and tax strategies aimed at eliminating the so-called "Korea discount."
Tech Sector Volatility
Tech stocks also kept traders actively engaged, particularly following Intel’s forecast of lower quarterly revenue and profit than expected, resulting in an 11% drop in its shares during after-hours trading. This development serves as a reminder of the possible rapid changes in market sentiment that earnings reports can deliver.
The recent fluctuations in the cryptocurrency market alongside the broader recovery in Asian equities encapsulate a vibrant yet cautious economic atmosphere as global investors navigate through uncertain times.
The post Asia Market Open: Bitcoin Dips Below $90K, Wall Street Rebound Lifts Asia Risk Mood originally appeared on Cryptonews.
