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- Asian equities dropped sharply following Wall Street losses.
- Bitcoin and Ethereum faced renewed selling pressure amid regulatory fears.
- Fed’s cautious stance on rate cuts fuels global market volatility.
Asian markets fell sharply on Friday, mirroring Wall Street’s losses as investors digested cautious remarks from Federal Reserve officials. Bitcoin also slipped below $100,000 for the third time this month, highlighting growing risk aversion across both traditional and digital assets.
Wall Street Ripples Through Asia
Japan’s Nikkei 225 dropped 1.73% to 50,392, while South Korea’s KOSPI tumbled 3% to 4,045.44. Hong Kong’s Hang Seng fell 1.13% to 26,767 amid intensified regional selling. Australia’s S&P/ASX bucked some of the trend but still lost 1.44%, closing at 8,627.5. Traders cited hawkish comments from the Fed, which pushed back expectations for rate cuts in December. The probability of a reduction in interest rates now stands at 51%, down from 63% previously.
Crypto Markets Under Pressure
Bitcoin’s drop below $100,000 reflected persistent selling in spot markets, while Ethereum slid 8.33% over 24 hours. The crypto sector has struggled to recover from October’s flash crash, which caused record liquidations. Binance Futures’ open interest sits at $9 billion, below October’s $12 billion peak, suggesting cautious positioning by traders. Adding to the pressure, reports indicate Japan may impose stricter regulations on cryptocurrency treasury companies, heightening investor uncertainty in digital assets.
Also Read: Bitcoin Whales Are Selling—But Is This Just Normal Late-Cycle Behavior? Experts Weigh In
Cross-Asset Volatility Persists
Risk aversion has spilled over into traditional markets. Gold fell 0.6% overnight, while oil prices are on track for a third consecutive weekly decline. Meanwhile, the dollar retreated despite rising yields, reflecting complex dynamics between currency, commodity, and equity markets. Fed officials emphasized inflation concerns, with Minneapolis Fed’s Kashkari opposing previous rate cuts and Cleveland Fed’s Beth Hammack stressing a restrictive stance.
Traders are awaiting key U.S. economic data, including retail sales, to gauge the Fed’s next moves. Until then, risk assets globally are likely to remain volatile as investors balance inflation expectations against growth concerns.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
