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Asia Market Opening: Risk Assets Strengthen as Bitcoin Approaches $87K Amid Fed Rate-Cut Expectations
Good morning, Asia. Here’s what’s happening before the market opens.
Asian markets began the day on a positive note on Wednesday, with investors returning to risk assets as Bitcoin remained close to $87,000 and market participants reinforced the belief that the US Federal Reserve will reduce interest rates in December.
Stocks throughout the region mirrored Wall Street’s recovery. MSCI’s index of Asia-Pacific shares excluding Japan increased by approximately 1% in early trading, while Japan’s Nikkei surged by about 1.8%.
US equity futures contributed to the optimistic sentiment with slight gains, building on the previous session’s rise.
Market snapshot
- Bitcoin: $87,662, down 0.2%
- Ether: $2,954, up 1%
- XRP: $2.19, down 2.5%
- Total crypto market cap: $3.10 trillion, up 0.1%
Weaker US Data Boosts December Rate-Cut Expectations
The atmosphere improved following a new set of US data indicating a slowing economy rather than a severe downturn. Retail sales increased less than analysts had predicted, and consumer confidence saw a significant decline, particularly regarding households’ short-term outlook.
This combination strengthened the belief that the Fed could begin to ease policy without compromising its credibility on inflation.
Fed funds futures now suggest better than an 80% likelihood of a quarter-point reduction at the meeting on Dec. 10, according to the CME Group’s FedWatch tool, marking a significant change from roughly equal odds a week prior.
1/
Traders are increasing their positions in Fed funds futures.
Nearly 275,000 new contracts added in just three sessions.
Markets are now pricing in ~80% odds of a December rate cut.
Three days ago, it was 30%.
Such a dramatic shift typically indicates that the market anticipates a pivot. pic.twitter.com/MdM7o1U205— Agar Capital (@AgarCapital) November 25, 2025
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The yield on the benchmark 10-year US Treasury note briefly fell below 4% on Tuesday for the first time this month, then rose back above that threshold, reflecting renewed interest in longer-term securities as growth indicators weaken.
Major Indices Recover As Investors Shift Away From Big Tech
Wall Street had already begun to stabilize. The S&P 500 and Nasdaq recorded a third consecutive day of gains on Tuesday, recovering some of the losses from earlier in the month, even as major tech companies like Nvidia lagged, limiting the Nasdaq’s progress.
The blue-chip Dow led the major indices upward, supported by more cyclical stocks that typically benefit from looser policy and increased liquidity.
This environment directly influenced the crypto market. Bitcoin remained just below $90,000 during Asian trading hours, stable rather than spectacular, yet comfortably above the lows experienced during the recent downturn.
Bitcoin Faces December Lull As Traders Moderate Expectations
Koinly CEO Robin Singh noted that Bitcoin has been having difficulty regaining the $90,000 mark for a longer period than most market participants anticipated. With the market approaching its annual “Christmas hibernation,” the chances of any significant price movements before the New Year are diminishing rapidly, he stated.
“However, a decisive and unexpected recovery above $90,000 in December would greatly enhance market sentiment. It would ease bearish sentiments and help keep 2026 free from early ‘crypto winter’ concerns before they arise,” he added.
“It is possible that the upcoming weeks may be a lull, so any anticipated excitement traders were hoping for may need to be postponed until 2026. Historically, Decembers have shown little movement for Bitcoin.”
For the moment, the broader macroeconomic narrative is playing a more significant role than any individual crypto driver.
Oil traders also responded to the changing risk sentiment. Crude prices stabilized during Asian trading after a decline on Tuesday, when remarks from Ukraine’s President Volodymyr Zelenskiy regarding a US-supported peace initiative sparked speculation that sanctions on Russian energy exports might eventually ease, allowing more supply to return to the market.
The post Asia Market Open: Risk Assets Firmer With Bitcoin Near $87K As Asia Rides Fed Rate-Cut Narrative appeared first on Cryptonews.
