Bitcoin Holds Near $88,680 Amid Positive Asian Market Momentum and Cautious Fed Policy
Bitcoin traded around $88,680 in early Asia trading, up about 0.4% for the day, according to CoinGecko. The cryptocurrency remained near $88,000 as Asian equities rose, with risk appetite buoyed by momentum from Wall Street.
The MSCI Asia-Pacific index increased by approximately 0.31%, reflecting a continuation of the risk-on sentiment from the US session. Despite this, the total crypto market capitalization fell about 0.9% during the session, standing around $3.06 trillion.
Federal Reserve policy remains cautious, with analysts noting that disinflation is slow and uneven. This environment supports a hold stance rather than rapid easing, with the Consumer Price Index (CPI) year-over-year at around 2.7%.
Exchange reserves for cryptocurrencies remain relatively low, indicating holders are retaining their assets while monitoring liquidity signals.
In precious metals, gold prices stayed above $4,400 per ounce, and silver reached fresh highs as investors sought hedges amid expectations of a potentially softer path for interest rates due to geopolitical tensions. These tensions include recent US actions concerning Venezuela and tanker interdictions, which also influence energy and safe-haven trades.
Looking ahead, investors anticipate the US third-quarter GDP to show around 3.3% annualized growth, which may guide risk sentiment as the year-end approaches.
