Bitcoin experienced a notable rise of approximately 2% during Asian trading hours on Wednesday, reaching a price of $87,274. This uptick came as regional stock markets showed a slight gain, with traders anticipating Thursday’s US inflation data to provide key insights into potential interest rate cuts by the Federal Reserve in 2026. The recent mixed jobs report from the US, along with softer purchasing managers’ data, left investors questioning whether economic growth is slowing sufficiently to warrant a more accommodative monetary policy.
Akshat Siddhant, lead quant analyst at Mudrex, noted that record low Bitcoin exchange reserves have bolstered bullish sentiments, giving traders a slight advantage amidst the uncertainty. Siddhant suggested that if the current momentum persists, Bitcoin could potentially approach $90,000, with significant support seen in the $86,000 range.
The broader cryptocurrency market reflected this positivity, with total market capitalization climbing to $3.05 trillion, up 1.3%. Other cryptocurrencies also performed well, with Ether rising 0.5% to $2,948 and XRP increasing by 3.4% to $1.93.
In regional equity markets, technology stocks helped to enhance investor sentiment, particularly following a challenging period for the sector. South Korea’s KOSPI gained 0.6%, while Hong Kong’s Hang Seng Index climbed 0.3%, buoyed by renewed interest in large-cap tech names and developments in the AI sector. Notably, stocks associated with robotaxi ventures, such as Pony AI and WeRide, each surged over 3% after Tesla CEO Elon Musk announced testing of driverless robotaxis.
In the US, the Nasdaq finished higher on Tuesday, while the S&P 500 and Dow Jones Industrial Average closed lower, primarily due to declines in healthcare and energy sectors. Investors are currently discerning economic patterns amidst delayed releases of critical data following a recent government shutdown.
Despite the positive momentum in Bitcoin and other assets, concerns about growth persist. A recent Labor Department report revealed that nonfarm payrolls increased by 64,000 jobs in November, although the unemployment rate rose to 4.6%. Retail sales also remained stagnant in October, falling short of economists’ predictions.
Nic Puckrin, co-founder of Coin Bureau, highlighted that end-of-year tax-loss selling could pressure Bitcoin prices, with many investors reflecting on losses. Puckrin indicated that Bitcoin could dip below $80,000 if selling intensifies. He emphasized key support levels for Bitcoin around $81,200 and an important cost basis for ETFs near $83,800.
In the Asian markets, the Shanghai Composite remained steady amid cautious optimism surrounding potential fiscal support from Beijing, as the Shanghai Shenzhen CSI 300 index rose by 0.5%. Japan’s Nikkei 225 gained 0.3% following positive trade data that exceeded expectations, underpinning growth as the year comes to a close. The Bank of Japan’s upcoming policy decision, with expectations leaning towards a rate increase, has attracted attention, especially in light of sustained inflation and a weak yen.
As the week progresses, US rate expectations are further complicated by reports that President Donald Trump is slated to interview Fed Governor Christopher Waller for the chair position, adding another layer of uncertainty to an already volatile market.
