MARKET UPDATE

Bitcoin price today falls below $82k.

Bitcoin extended losses on Friday, set to fall nearly 5% this week, battered by an escalating trade war stemming from U.S. President Donald Trump’s tariff decisions, while investors were also cautious ahead of the Federal Reserve meeting due next week.

The world’s largest cryptocurrency fell 1.6% to $81,914.20 by 03:08 ET (07:08 GMT)

Bitcoin fell below the crucial $80,000 mark in the previous session.

Trump tariff decisions spark risk-off mood, Fed meeting awaited

The developments around this escalating trade war have intensified fears of a potential U.S. recession, leading investors to retreat from speculative assets like cryptocurrencies.

This shift has prompted investors to move towards safer assets. Notably, gold prices surged to record highs on Friday, underscoring a broader risk-off sentiment among investors.

 

Oil rebounds.

Oil prices rebounded on Friday to recover some of their losses of more than 1% in the previous session, partly due to the diminishing prospects of a quick end to the Ukraine war that could bring back more Russian energy supplies.

Brent crude futures rose 70 cents, or 1%, to $70.58 a barrel by 0650 GMT after settling 1.5% lower in the previous session. U.S. West Texas Intermediate crude was at $67.28 a barrel, up 73 cents, or 1.1%, after closing down 1.7% on Thursday.

Russian President Vladimir Putin said on Thursday that Moscow supported a U.S. proposal for a ceasefire in Ukraine in principle, but sought a number of clarifications and conditions that appeared to rule out a quick end to the fighting.

The International Energy Agency warned on Thursday that global oil supply could exceed demand by around 600,000 barrels per day this year, due to growth led by the United States and weaker than expected global demand.

“The macroeconomic conditions that underpin our oil demand projections deteriorated over the past month as trade tensions escalated between the U.S. and several other countries,” the IEA said, prompting it to revise down its demand growth estimates for the fourth quarter of 2024 and the first quarter of 2025.

 

Chinese stocks surge.

Chinese stocks rallied on Friday amid hopes that Beijing will soon take steps to bolster the economy. There are rumblings that the People’s Bank of China (PBOC) may take measures to improve liquidity in the Chinese banking system before the weekend concludes.

The last time the PBOC reduced the Reserve Requirement Ratio (RRR) – the proportion of funds that banks must hold in reserves – was in September. This move enabled banks to lend more, thereby injecting more liquidity into the system.

Positive market sentiment is also being driven by the anticipation of policies aimed at enhancing consumption. These policies could be revealed at a press conference scheduled for Monday, where key Chinese policymakers will be present.

The economic growth plan for the year, disclosed earlier this month at the “Two Sessions” meeting, indicated that augmenting consumption is a key governmental objective.

The upcoming press conference will feature representatives from the National Development and Reform Commission, the Ministry of Finance, the Ministry of Human Resources and Social Security, the Ministry of Commerce, the People’s Bank of China, and the state market regulators.

The benchmark Shanghai Composite Index rose 1.81% to 3419.56, putting it on track for its highest close since December of the previous year.

 

 

 

 

 

 

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