Bitcoin maintained a strong position near $93,000 during Thursday’s Asian trading session, even as regional stocks began the day on a subdued note. The latest economic data from the United States, which was softer than expected, heightened anticipations that the Federal Reserve may implement a rate cut in its upcoming meeting.
Investment analyst Nic Puckrin, co-founder of The Coin Bureau, noted that Bitcoin had experienced a “remarkable recovery” recently, attributing it to a confluence of positive developments. Key factors included Vanguard’s decision to lift its long-standing ban on Bitcoin exchange-traded funds (ETFs), Bank of America’s recommendation for investors to allocate 1% to 4% of their portfolios to cryptocurrencies—potentially directing as much as $700 billion into the sector—and increasing optimism surrounding Kevin Hassett’s candidacy to become the next chair of the Federal Reserve.
Puckrin emphasized the significance of the expected rate cut on December 10, stating that market participants are keenly focused on the monetary policy outlook for 2026. He indicated that Hassett’s appointment would be perceived favorably by investors.
As of the latest figures, Bitcoin was trading at $93,609, a rise of 0.9%. Ether surged by 5.9% to $3,215, while XRP increased by 0.7% to $2.20, contributing to a total cryptocurrency market capitalization of $3.27 trillion, which saw a 1.8% gain.
Analysts also highlighted potential breakout levels for Bitcoin. Akshat Siddhant, lead quant analyst at Mudrex, pointed out that if Bitcoin breaks decisively above its current levels, it could pave the way to the $103,000 supply zone. Traders are closely monitoring US weekly jobless claims, released later on Thursday, which could bolster Bitcoin’s upward momentum if the data suggests a more accommodative policy environment.
In the broader equities market, Asian indices were mixed. Japan’s Nikkei 225 increased by approximately 0.8%, while MSCI’s broad index of Asia Pacific shares outside Japan dipped by about 0.1%, affected by declines in Korea and New Zealand. Mainland China stocks showed little movement, with some slight gains, and Hong Kong’s Hang Seng index also exhibited modest growth, indicating a cautious outlook among investors.
In the US, index futures remained stable following previous gains, with contracts on the Dow Jones Industrial Average, S&P 500, and Nasdaq all edging up slightly. European futures presented a mixed picture, with the DAX and FTSE 100 showing slight declines, while the CAC 40 was marginally stronger.
On Wall Street, small-cap stocks led gains, with the Russell 2000 surging approximately 1.9%. The S&P 500 also recorded a second consecutive rise following a significant drop in private payrolls, which reflected the largest decrease in over two and a half years. Reports from the Institute for Supply Management indicated a contraction in services employment for November and a notable decrease in the prices paid subindex, even as overall services activity remained close to 52.6.
The combination of these softer economic metrics has strengthened the likelihood of an imminent rate cut. According to CME’s FedWatch tool, futures markets now indicate an approximately 89% chance of a 25-basis-point reduction during the Federal Reserve’s upcoming meeting, up from about 83% a week prior.
The dollar index fell by around 0.4% to 98.878, marking a five-week low and extending its decline to nine consecutive sessions. The yield on the 10-year US Treasury held steady near 4.07%, amid discussions among bond investors regarding concerns that Hassett’s potential policies might align with aggressive rate cuts favored by former President Donald Trump.
As markets navigate a backlog of US economic data—resulting from a 43-day government shutdown earlier this year—traders are increasingly relying on private sector surveys and real-time indicators to inform their outlook on the Fed’s trajectory.
Looking ahead, the next significant macroeconomic event is the release of the personal consumption expenditures index, the preferred inflation measure of the Federal Reserve, scheduled for Friday. In the meantime, market sentiment appears to hinge on the expectation of a rate cut in December and the pace of economic growth and employment trends in the coming years.
