The cryptocurrency market is seeing fresh energy as Bitcoin climbed nearly 2% during Asian trading hours on Wednesday, reaching an impressive $87,274. This upward movement comes as investors sift through the implications of a mixed US jobs report, alongside modest gains in regional stock markets.
As Asian markets opened on Wednesday, equities reflected a positive sentiment, with South Korea’s KOSPI rising 0.6% and Hong Kong’s Hang Seng increasing by 0.3%. This uptick is partly attributed to a resurgence in technology shares that have struggled in recent weeks.
US Jobs Data Raises Questions
The US Bureau of Labor Statistics released delayed employment figures for November on Tuesday, revealing that the economy added 64,000 jobs. This figure exceeded analyst forecasts, which anticipated a more modest increase. However, amidst this positive job growth, the unemployment rate also rose to 4.6%, marking its highest point since 2021. This duality in the report has stirred discussions among economists regarding the Federal Reserve’s future policy moves.
The unemployment increase comes with an accompanying revision for October that indicated a loss of 105,000 jobs, impacted by government spending cuts. With retail sales for October remaining flat, the delayed data collection—due to a recent government shutdown—has led to heightened uncertainty about the economy’s direction.
The mixed picture painted by the jobs report has intensified speculation about potential Federal Reserve actions. Investors are currently factoring in expectations for at least two rate cuts in 2026, as the Fed weighs the implications of a weakening labor market against ongoing inflation pressures.
Market analysts are turning to Bitcoin’s performance as a barometer for investor sentiment. Akshat Siddhant, lead quant analyst at Mudrex, noted that Bitcoin exchange reserves are at record lows, which could support further price increases. “If momentum continues, I see Bitcoin advancing towards $90,000, with strong support in the $86,000 range,” he stated.
However, Nic Puckrin, co-founder of Coin Bureau, cautioned that the potential for year-end tax-loss selling could weigh on Bitcoin prices. He identified key support levels at around $83,800 and $81,200, suggesting that if the selling pressure accelerates, it could push Bitcoin down towards the $80,000 mark.
Diverging Stock Market Trends
The US stock markets displayed varied performance on Tuesday, with the Nasdaq Composite enjoying a small gain of 0.2%, while the S&P 500 slipped by 0.2% and the Dow Jones Industrial Average fell 0.6%, translating to a loss of 300 points. A major highlight was Tesla’s stock, which hit a new record high after CEO Elon Musk announced advancements in robotaxi testing devoid of human safety drivers.
This news had a ripple effect, positively impacting related automotive stocks in Hong Kong, including Pony AI and WeRide, which both rose above 3% during the Asian trading hours.
Simultaneously, broader market performance struggled due to pressures from the healthcare and energy sectors. Ford recently indicated $19.5 billion in charges related to strategic shifts in its electric vehicle production efforts.
The total cryptocurrency market capitalization saw a boost, rising by 1.3% to $3.05 trillion, as other major digital assets like Ether and XRP also recorded gains during the Asian session.
In Japan, the Nikkei 225 and the Topix posted increases of 0.3% and 0.1% respectively, propelled by export data that surpassed expectations, suggesting that overseas demand remains robust as the year draws to a close.
Looking ahead, markets are poised to react to the upcoming US inflation data set for release on Thursday, which will provide further insight into the Federal Reserve’s possibly shifting policy landscape. Moreover, observers are keenly awaiting the Bank of Japan’s decision on monetary policy amidst a backdrop of a weak yen and persistent inflationary pressures.
