MARKET UPDATE
Asia shares stumble.
Asian stocks fell broadly on Thursday, while longer-dated U.S. bond yields rose alongside the dollar as investors assessed the monetary policy and inflation outlook in the world’s largest economy.
Bitcoin steadied above $90,000 after having surpassed that level in the previous session, turbocharged by Donald Trump’s return to the White House and the view that his administration will be a boon for cryptocurrencies.
The world’s largest cryptocurrency last traded 1.6% higher at $90,067, having already soared more than 30% on a two-week rolling basis.
In the broader market, traders responded to a U.S. inflation print that was in line with expectations by ramping up bets on a Federal Reserve rate cut next month, though the monetary policy outlook for 2025 and beyond was clouded by Trump’s return to office.
Trump’s plan for lower taxes and higher tariffs are expected to stoke inflation and reduce the Fed’s scope to ease interest rates, buoying the dollar.
Edison Research also projected on Wednesday that the Republican Party will control both houses of Congress when the President-elect takes office in January, which would enable Trump to pursue his agenda largely unhindered.
Oil prices ease on stronger greenback.
Oil prices slipped in early trade on Thursday, reversing most of the previous session’s gains on a stronger dollar and worries of higher global output amid slow demand growth forecasts.
Brent crude futures fell 45 cents, or 0.6%, to $71.83 a barrel by 0726 GMT. U.S. West Texas Intermediate crude (WTI) futures declined 48 cents, or 0.7%, to $67.95.
“The primary driver of oil prices, both in the near term and looking ahead, will be the direction of the U.S. dollar,” said Phillip Nova’s investment analyst Danish Lim, adding that supply and demand dynamics had put pressure on prices recently.
The dollar’s recent rally has been a key downside pressure, said Lim, who expects oil markets to stay volatile, although with a bearish bias. The U.S. dollar surged to a one-year high, extending gains from Wednesday’s seven-month high against major currencies after data showed U.S. inflation in October increased in line with expectations.
Bitcoin price today upbeat near $90k.
Bitcoin rose on Thursday, remaining in sight of recent peaks as sentiment towards crypto markets was underpinned by expectations of friendlier regulations under Donald Trump.
Among meme tokens, Dogecoin extended gains and remained in sight of three-year peaks hit earlier this week. Social media buzz around Doge also rose after Trump announced the formation of the Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy.
Bitcoin rose 3.8% to $89,885.4 by 00:30 ET (05:30 GMT). The token hit a record high of $93,226.6 on Wednesday, but swiftly fell from the level.
Broader crypto prices also rose, and were undeterred by a rally in the dollar to one-year highs, after U.S. consumer inflation showed signs of stickiness in October.
Trump trade underpins Bitcoin
The world’s largest cryptocurrency remained underpinned by optimism over Trump’s victory in the 2024 presidential race, given that he had vowed to roll out crypto-friendly regulations.
Trump had promised to make America the crypto capital of the world, and had also floated the idea of a national Bitcoin reserve.
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