Bitcoin Stabilizes Near $87K as Asian Markets Open on Optimistic Rate-Cut Sentiment

Bitcoin maintained around $87,000 on Tuesday as Asian markets started on a positive note. The upswing in stocks was influenced by recent gains on Wall Street and increasing hopes that the Federal Reserve may lower interest rates in December.

Key Takeaways

Bitcoin Price: Stood at $87,934, with a slight increase of 0.5%.
Market Trends: Asian markets, particularly Japan and South Korea, showed gains influenced by a stronger Wall Street.
Tech Stocks: Big tech companies remain pivotal in market momentum, with Meta exploring partnerships for AI-enhanced chips.
Federal Reserve Signals: Comments from Fed officials suggest higher chances of a rate cut in December, contributing to market optimism.
Economic Data: Upcoming economic reports could influence the Fed's decisions and market trends.

Bitcoin

Bitcoin Steadies as Asian Markets Open

Bitcoin hovered around $87,000 Tuesday as Asian markets commenced on a solid note. Stocks drew inspiration from gains on Wall Street and increased optimism regarding potential interest rate cuts by the Federal Reserve come December.

Markets in Japan and South Korea led the regional upward trend, particularly with Tokyo resuming trading after a holiday. The US markets saw a positive close on Monday, driven by tech stocks that recovered from a dip the previous week, as traders prepared for a busy calendar of economic data releases.

Notably, a measure of Chinese firms listed in the U.S. increased by 2.8% following discussions between Presidents Donald Trump and Xi Jinping, marking their first communication since reaching a tariff agreement last month.

Market Overview:

Bitcoin: $87,934, up 0.5%
Ether: $2,930, up 3%
XRP: $2.25, up 7.8%
Total Crypto Market Cap: $3.10 trillion, up 1.3%

Tech Giants Propel Market Momentum as Meta Targets Google’s AI Chips

In extended trading in the U.S., shares of Alphabet increased while Nvidia saw a slight decline following reports from The Information stating that Meta Platforms is negotiating a multibillion-dollar deal to utilize Google’s AI-centric chips. This news bolstered the perception that major tech players are central to both the AI market and overall investor sentiment.

During the start of a short holiday week, major U.S. indices posted strong gains, with AI-related stocks, often referred to as the “Magnificent Seven”, once again positioning the Nasdaq for strong performance.

The Federal Reserve’s communications further supported this market rebound. Fed Governor Christopher Waller’s remarks on Monday expressed optimism for a possible rate cut next month, helping to calm nerves after the recent volatility associated with inflated AI valuations and uncertainties surrounding policy directions.

Some investors are interpreting November's market pullback as a precursor to a seasonal rally as the year approaches its end.

Fed Signals Boost Rate Cut Expectations

Waller’s statements echoed similar sentiments from other Federal Reserve officials. San Francisco Fed President Mary Daly endorsed a December rate cut in a television interview, while New York Fed President John Williams also indicated on Friday that a rate reduction remains a possibility. This consensus from various policymakers has tilted market expectations toward a more accommodative monetary policy.

U.S. 10-year Treasury yields fell four basis points to approximately 4.02% on Monday as market speculation shifted. Current trends indicate about a 90% likelihood that the Fed will lower its benchmark rate during the December meeting—a notable increase in certainty compared to recent weeks, favorable for growth assets such as tech stocks and Bitcoin.

Looking ahead, the focus now turns to a comprehensive array of economic data releases. Ahead of the Thanksgiving and Black Friday shopping periods, retail sales statistics for September are anticipated to reflect a cooling trend as consumers grapple with elevated prices.

Additionally, producer prices and durable goods orders are also scheduled for release this week, and jobless claims covering the crucial November survey period will carry extra weight as the Fed adjusts its strategies in light of these alternative indicators.

Economic Data Reinforces Market Belief in Potential December Rate Cut

A series of economic reports released later than usual due to a six-week government shutdown indicates a slowing labor market amid persistent inflation levels. This combination has strengthened market perceptions that the Fed is likely to deliver what many anticipate as a third and final rate cut in 2025 during December's meeting.

As for corporate earnings, nearly 95% of S&P 500 companies had disclosed their third-quarter results by Friday, with around 83% outperforming analysts’ expectations. Projections for aggregate earnings growth for this quarter now sit at 14.7%, compared to an initial forecast of 8.8% made at the start of October, providing another incentive for equity investors to remain engaged.

Crypto analysts are cautiously observing Bitcoin’s performance in this context. A narrative reminiscent of earlier trends in 2025 is reemerging, where Bitcoin price movements appear to precede major shifts in traditional equity markets—a pattern some interpret as a cautionary signal that the broader markets might still face additional correction phases, even amidst current rebounds.

According to Bitfinex analysts, recent on-chain data highlights significant loss-taking among traders, indicating how top-heavy the market has become. There's been a notable retreat of buying activity in the range of $106,000 to $118,000, now occurring at a loss.

They posit that the current market dynamics leave two potential scenarios: a robust resurgence in demand that absorbs ongoing selling pressure or a prolonged accumulation phase where the market seeks a more stable equilibrium before advancing again.