Key Takeaways:
- Asian markets fell sharply, led by South Korea and Japan, following Wall Street losses.
- Bitcoin dropped below $100K amid selling pressure and regulatory concerns in Japan.
- Fed hawkishness reduces rate cut expectations, pressuring global risk assets.
- Derivatives markets remain weak, signaling continued investor caution.
Asian Markets Tumble on Wall Street Fallout
Asian equities fell sharply Friday, extending losses from Wall Street after Federal Reserve officials signaled caution on further interest rate cuts. Japan’s Nikkei slid 1.73% to 50,392, South Korea’s KOSPI dropped 3% to 4,045.44, and Hong Kong’s Hang Seng lost 1.13% to 26,767. Even Australia’s S&P/ASX declined 1.44% to 8,627.5, reflecting broad regional selling.
Investors reacted to the Fed’s hawkish stance, which dampened expectations for December rate reductions. Futures markets now price in just a 51% chance of a cut, down from 63% previously, intensifying risk-off sentiment.
Bitcoin Below $100K Amid Selling Pressure
Bitcoin briefly fell below $100,000 for the third time this month, with Ethereum dropping 8.33% in 24 hours. Persistent selling pressure in spot markets, weak derivatives performance, and lingering effects from October’s flash crash continue to weigh on cryptocurrencies. Binance Futures’ open interest remains at $9 billion, well below the $12 billion peak observed in October.
Also Read: Bitcoin Falls Below $104K — Why Big Investors Are Still Buying
Adding to the bearish outlook, reports indicate potential Japanese regulations targeting cryptocurrency treasury companies. The Japan Exchange Group, operator of the Tokyo Stock Exchange, may implement stricter oversight, further chilling digital asset investor sentiment.
Global Risk Assets Face Pressure
The cautious Fed outlook is affecting more than equities and crypto. Gold fell 0.6% overnight, and oil is experiencing a third consecutive weekly decline. Meanwhile, the US dollar retreated despite higher yields, highlighting complex cross-asset dynamics. Traders await upcoming US retail sales and economic indicators for clearer market direction.
Also Read: IOTA Price Predictions Exposed: Opportunity or Risk?
Conclusion
Global markets are navigating heightened uncertainty as Fed caution collides with cryptocurrency volatility. Investors should prepare for sustained risk-off conditions, monitor regulatory developments in Asia, and watch economic data closely for trading opportunities.
