Asia Market Open: Crypto Edges Up as Fed Week Raises Rate‑Cut Hopes
Crypto and Asian equities traded cautiously higher as markets opened a Fed‑focused week that could drive policy easing. Bitcoin rose about 1.9% to near $91,000 and Ether gained about 2.1%; total crypto market cap reached roughly $3.18 trillion (up 1.3%). Analysts said a Fed rate cut this week could trigger a year‑end “Santa rally,” with one strategist citing $87,500 as key Bitcoin support and $100,000 as a potential upside target. Asian stocks made modest moves: Japan’s Nikkei slipped ~0.3%, South Korea’s Kospi eased ~0.3%, and MSCI’s Asia‑Pacific ex‑Japan index dipped ~0.1%; mainland China eyes November trade data. US futures were flat ahead of the FOMC decision and corporate results (Oracle, Broadcom, Costco). Futures pricing implies about an 85% chance of a 25bp Fed cut, though some Fed officials warn against cutting too soon. Traders are watching the dollar path, liquidity and political noise in the US — all factors that affect demand for hard‑cap assets like Bitcoin. Other central banks (Canada, Switzerland, Australia) are expected to hold rates this week. Key takeaways for traders: monitor FOMC announcements and CPI/inflation prints, watch BTC support at ~$87.5k and upside to $100k on a dovish surprise, and gauge risk sentiment from US earnings and Chinese trade data.
Bullish
The article links rising crypto prices—notably Bitcoin near $91k—and broader risk‑asset gains to growing market expectations of Fed easing. Futures pricing implies a high probability (≈85%) of a 25bp cut; analysts highlight specific BTC technical levels (support ≈ $87.5k, upside ≈ $100k) that traders can watch. Historically, confirmed rate cuts or clear signals of easing have boosted risk assets and speculative flows into crypto (e.g., post‑cut rallies in prior cycles). Short term the market may see volatility around the FOMC announcement and US economic prints; a dovish surprise would likely trigger a rapid bullish leg as liquidity and dollar weakness favor BTC. Conversely, a surprise to hold rates could produce a quick pullback to the cited support levels. Overall, the net bias is bullish because the dominant narrative is easing-driven liquidity inflows — but traders should manage risk around event-driven volatility, monitor CPI and earnings for sentiment shifts, and watch on‑chain funding and liquidations which historically amplify short‑term moves.