Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Good morning, Asia. Here’s what’s moving before the bell.
Bitcoin edged higher above $87,000 on Monday as Asian markets opened in a firmer mood, with stocks gaining after traders ramped up bets that the Federal Reserve could deliver a rate cut in December.
Investors started the week by adding back risk exposure, encouraged by the prospect of easier policy even as Fed officials continue to send mixed signals.
The move came at the start of a busy few days that will bring fresh US retail sales and producer price data, as well as a closely watched budget announcement from British finance minister Rachel Reeves.
Market snapshot
- Bitcoin: $87,461, up 1.5%
- Ether: $2,854, up 1.1%
- XRP: $2.08, up 2.6%
- Total crypto market cap: $3.06 trillion, up 0.9%
Fed Easing Bets Surge After Williams Signals Rates Could Fall Soon
Expectations for Fed easing picked up after New York Fed President John Williams said on Friday that interest rates can fall “in the near term,” a phrase traders quickly seized on.
Fed funds futures now assign about a 57% chance of a 25-basis-point cut next month, up from less than 30% only a week earlier, reflecting a swift repricing of the policy path.
Trading in US cash Treasuries was shut in Asia because of a holiday in Japan, but futures held steady, signalling that bond markets are waiting for more data.
The outlook for rates has become harder to read after a record US government shutdown earlier this month disrupted economic releases, and the Bureau of Labor Statistics said on Friday it had “cancelled” the October consumer price report because officials were unable to collect the necessary data.
Holiday Closure In Japan Keeps Regional Trading Volumes Muted
Even with some of the usual macro signposts missing, the prospect of lower borrowing costs helped lift equities. MSCI’s broad index of Asia Pacific shares outside Japan rose about 0.4%, trimming part of last week’s decline, while South Korea’s tech-heavy Kospi gained roughly 0.7%.
Overall activity was thinner than usual as Japanese markets were closed for a holiday.
Futures pointed to further stabilisation in Western markets. Contracts linked to the Nasdaq and the S&P 500 added around 0.5%, and Eurozone blue chip futures also advanced, extending the rebound that began on Wall Street on Friday after a run of dovish leaning remarks from Fed officials.
Gains across Asia were not evenly shared. Chinese stocks lagged as local chipmakers fell sharply following a report that Washington was considering allowing Nvidia to resume sales of a key chip into the mainland.
The main Shanghai and Shenzhen CSI 300 and the Shanghai Composite slipped about 0.3% each, and gains in Hong Kong were capped.
Oil Prices Slip As Markets Weigh Potential Supply Boost From Peace Progress
At the same time, the possibility of resumed Nvidia shipments offered some relief for China’s large internet platforms, which rely on advanced chips to power artificial intelligence projects.
Broader sentiment also took cues from geopolitics. The US and Ukraine said they had agreed on an “updated and refined peace framework” aimed at ending the war with Russia. That development kept pressure on oil prices, as traders weighed the possibility of improved supply conditions if tensions ease further.
For crypto-focused investors, the combination of a firmer Bitcoin price, softer yields and a gentler tone from parts of the Fed offered a measure of relief after recent volatility.
With key US data still to come and the central bank heading into its early December meeting with an incomplete picture of inflation, traders in Asia are watching whether the renewed appetite for risk can carry Bitcoin further away from last week’s lows.
