Asia Market Opening: Bitcoin Declines as Asian Markets Respond to Technology Sector Rebound

Bitcoin fell to approximately $85,200 on Friday as Asian equities stabilized following a technology-driven rebound on Wall Street, with traders shifting their focus to Japan, where a potential rate adjustment by the Bank of Japan later in the day could impact currencies and bonds.

The sentiment improved after an unexpected deceleration in US consumer price inflation to 2.7%, although analysts warned that the figure appeared significantly influenced by the government shutdown and should not be interpreted literally.

Market snapshot

• Bitcoin: $85,811, down 1%
• Ether: $2,836, down 0.1%
• XRP: $1.79, down 3.8%
• Total crypto market cap: $2.97 trillion, down 1.4%

Bitcoin Pullback Reframes Debate Around Dormant Capital And DeFi Use

Crypto traders concentrated on positioning and flows rather than the overarching macro data. Analysts from Bitfinex noted that current figures indicate institutional investors are acquiring approximately 13% more Bitcoin than the roughly 450 newly mined coins generated daily on a rolling basis.

“This signifies the first significant supply shift since early November, despite recent worries regarding ETF outflows.”

“From a technical standpoint, there is robust buying support in the $82,000–$85,000 range,” they stated. “A sustained hold within this range would bolster bullish momentum by enhancing buyer confidence. This could, in turn, draw in new liquidity through increased ETF inflows and diminished selling pressure, facilitating further accumulation to the upside.”

U.S. asset manager Bitwise anticipates a rise in crypto-linked ETFs, forecasting that over 100 new products could debut in the U.S. by 2026.#ETFs #Bitwise https://t.co/R4eJ2LV8Yb

— Cryptonews.com (@cryptonews) December 18, 2025

Some market observers utilized the pullback to advocate for a longer-term use case narrative. Dom Harz, co-founder of BOB, remarked that Bitcoin’s volatility this week does not undermine its long-term prospects.

“Despite having nearly $2 trillion in market capitalization, the vast majority of BTC remains inactive, with only about 0.3% currently utilized in native Bitcoin DeFi,” he explained. “This unutilized liquidity presents a transformative opportunity to leverage the asset for lending, borrowing, and yield generation, while BTC collateral remains securely held on Bitcoin.”

Inflation Keeps Pressure On BOJ As Yen Stability Hangs In Balance

In terms of interest rates, Fed pricing shifted only slightly following the inflation data, with a January cut implied at 27%, while March increased to 58% from 54% prior to the release.

Japan took the spotlight in Asia. Markets indicated about a 90% likelihood that the BOJ would raise its policy rate by a quarter point to 0.75% later on Friday, and traders closely monitored for indications of how far policymakers might intend to proceed next.

Investors are currently betting on just one additional increase to 1.0% in 2026. Any indication of a more aggressive trajectory could stabilize the struggling yen, while exerting pressure on government bonds.

Data released on Friday revealed that Japan’s core CPI rose 3.0% in November, unchanged from the previous month, keeping inflation in focus ahead of the BOJ decision.

Equities reflected the improving sentiment. Japan’s Nikkei increased by 0.6%, South Korea rose by 1.2% following strong results from chipmaker Micron Technology, and MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.2%.

Central Bank Signals Complicate Global Bond And FX Trades

In the US, S&P 500 futures and Nasdaq futures remained steady after the overnight rebound, and bond markets reacted cautiously to the CPI report. Ten-year Treasury yields hovered around 4.126%, below a recent 3-1/2-month peak of 4.2%.

Divergence among central banks added another layer of complexity for global markets. British bonds declined after the Bank of England cut rates as anticipated, but only following a narrow 5-4 vote, while policymakers indicated caution regarding the pace of future easing, pushing the next fully priced cut out to June.

The European Central Bank adopted an even stricter stance, maintaining rates at 2.0% and signaling a probable conclusion to its easing cycle, with markets suggesting only a minimal chance of any cuts through 2026. Sweden and Norway also kept their policies unchanged, although Norway left the possibility open for one or more cuts.

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