Bitcoin Falls Below $86K as Asian Markets Decline Ahead of Key US Economic Data
Bitcoin hovered around $85.9k, down approximately 4%, coinciding with a slip in Asian equities ahead of upcoming US economic data. In Asia, Japan's markets declined while Australia saw gains. Futures for the S&P 500 and Nasdaq were also weaker, indicating a risk-off sentiment leading into a pivotal week for economic indicators.
Analysts at Bitfinex project Bitcoin could reach near $126,110 by 2026, supported by improving liquidity conditions, a looser monetary policy, and a supply issuance rate below 1%, with the market shifting toward long-term capital investors. However, Lin Tran from XS.com cautioned investors after Bitcoin failed to maintain levels above $90k, noting that many are trimming exposure heading into the year-end period.
Investors are awaiting significant US data releases, including November jobs figures on Tuesday and Consumer Price Index (CPI) data on Thursday, which are expected to influence the Federal Reserve's approach to interest rates. Federal Reserve officials remain divided on policy stance, with some believing it is too restrictive, while others consider it well positioned for the next year.
Currency and bond markets showed activity with the Japanese yen strengthening around 154.85 and expectations rising for higher Bank of Japan rates. The 10-year Japanese Government Bond (JGB) yields were near 1.97%.
In the cryptocurrency market, Bitcoin traded around $85,700, Ether at approximately $2,930, and XRP near $1.87. The total cryptocurrency market capitalization stood at about $3.02 trillion.
