Bitcoin slipped below $100,000 during Asian trading on Friday, and regional stock markets moved lower. Traders reduced their expectations of a U.S. interest rate cut next month after Federal Reserve officials issued hawkish comments that revived inflation concerns.
Wall Street sentiment also weakened. Futures turned negative after Thursday’s sharp sell-off, which ended a four-day winning streak for major U.S. indexes.
Crypto Market Snapshot
- Bitcoin: $99,063, down 2.9%
- Ether: $3,224, down 6.9%
- XRP: $2.31, down 7.6%
- Total crypto market cap: $3.41 trillion, down 3.8%
Bitcoin’s drop erased recent gains that came from optimism around institutional demand. The token traded below $100,000 for the first time in nearly six months as liquidity weakened and long-term holders continued to sell. Analysts said stronger institutional buying will be needed for a sustained rebound.
Maja Vujinovic of FG Nexus said the market is facing pressure from multiple factors, including inflation risks, tech-sector concerns, and slower institutional inflows. She added that Bitcoin’s next move depends heavily on renewed confidence from large investors.
Asian Markets Follow Global Declines
Asian stocks opened lower in response to the global sell-off:
- Japan’s Nikkei 225: down 1.77%
- Australia’s ASX 200: down 1.35%
- New Zealand benchmark: down 1.58%
- Hong Kong’s Hang Seng: opened lower
- China’s Shanghai Composite: down 0.16% after soft retail and industrial data
U.S. markets also fell sharply on Thursday. The Dow Jones dropped 1.65%, the S&P 500 slipped 1.66%, and the Nasdaq fell 2.29% as investors sold tech stocks, led by Nvidia.
In Europe, losses deepened with Germany’s DAX down 1.39%, the UK’s FTSE 100 down 1.05%, and the Euro Stoxx 50 down 0.83%.
Fed Signals Slow Path to Rate Cuts
U.S. Treasury yields rose as traders reduced their bets on a December rate cut. FedWatch data showed the probability of an early cut dropping to about 46%, down from more than 60% a day earlier.
Cleveland Fed President Beth Hammack said interest rates must stay restrictive to control inflation. St. Louis Fed President Alberto Musalem said the central bank has limited space to ease policy without risking price pressures.
Uncertainty grew further after the White House warned that October unemployment data may not be released due to the record government shutdown, which already delayed key economic reports.
The shift from rate-cut optimism to renewed inflation fears weighed on global markets and pushed investors toward safer assets.
