Bitcoin surged past $100,000 on Thursday as investors anticipated a shift toward more favorable regulations in the U.S., while Asian stocks remained steady following record highs on Wall Street, fueled by growing confidence in U.S. interest rate cuts.
Bitcoin reached the $100,000 milestone during the morning session in Asia, peaking at $103,400.
Geoff Kendrick, global head of digital assets research at Standard Chartered, commented, “At the end of the day, it’s just a number,” but noted that reaching this level reflects the increasing institutionalization of the industry, particularly driven by ETF inflows approved earlier this year.
The S&P 500, Nasdaq, and Dow all reached record highs overnight.
Markets have largely priced in an additional U.S. rate cut for 2025, and the likelihood of a rate cut in December has risen from even odds to around 75%.
While S&P 500 futures edged lower and European futures fell 0.2%, German stocks saw a 4% gain over the week, hitting record highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan dipped 0.2%, with losses in Hong Kong offsetting gains in Australia and Japan. Japan’s Nikkei index reached a three-week high, rising about 0.4%, while Hong Kong’s Hang Seng dropped around 1.1%.
The U.S. ISM survey showed a slowdown in services sector activity in November after significant growth in recent months. Meanwhile, benchmark 10-year Treasury yields fell three basis points to 4.182%, holding steady in Asian trade.Federal Reserve Chair Jerome Powell offered balanced remarks at a New York Times (NYSE:NYT) event on Wednesday, acknowledging the economy’s strong performance but refraining from challenging market expectations for rate cuts.
Earlier this week, Fed Governor Christopher Waller expressed his preference for a rate cut in December. European retail sales and German factory orders are scheduled for release later in the day, but the key focus for the week remains U.S. employment data due on Friday, with a strong report potentially reversing recent bond market trends.
“Overall, U.S. data has remained quite resilient,” said Su-Lin Ong, chief economist at RBC Capital Markets in Sydney, pointing to indicators like the Atlanta Fed’s GDPNow estimate, which projects solid growth of 3.2% for the fourth quarter. “We believe the market has priced in too much.”
Dollar Weakens Slightly
The dollar tracked U.S. yields lower in the forex market, though the movement was modest. The euro held steady at $1.0525, weighed down by political unrest in France, where the government lost a confidence vote for the first time since 1962. French bond futures remained stable during Asian trading.
The yen retraced some of its recent gains, and expectations for a rate hike in December softened after reports suggested policymakers are likely to proceed with caution. It was slightly stronger at 150.14 per dollar on Thursday.
The Australian dollar, at $0.6435, continued to recover from its steepest drop in a month on Wednesday, following disappointing growth data.
Financial markets in South Korea remained relatively stable after President Yoon Suk-Yeol’s failed attempt to impose martial law late Tuesday sparked political turmoil and volatility.In commodity trading, persistent expectations of Chinese stimulus helped support iron ore prices, while oil prices saw a slight increase ahead of an OPEC+ meeting later in the day.
Sources told Reuters that the Organization of the Petroleum Exporting Countries (OPEC) and its allies in OPEC+ are expected to extend their current oil production cuts.
Brent crude futures edged up by two cents to $72.33 per barrel, while gold prices held steady at $2,649 per ounce.
