Asia Color
The global market has caught up with the recalibration of the Fed rate cut outlook. The 10Y yield surged to 4.8%, its highest since late 2023, with markets now pricing no rate cuts until October. Equities futures opened 1.5% lower, sending Bitcoin below $90k before a steady recovery to above $95k.
What’s Next?
Key PPI and CPI data are on the horizon. We think potential surprises could come on the upside, as markets begin to adjust to the reality of a prolonged higher-rate environment, with some even entertaining the possibility of a rate hike.
The momentum in rising yields could test financial market resilience. In crypto, cautious sentiment is evident in BTC options flows, with puts rolled below the key $90k support. Front-end vols and flies remain elevated, while the VIX stays high at 18.68 – suggesting volatility to persist through January.
Still, there’s hope for a catalyst. Reports suggest Trump may sign executive orders on day one, addressing “de-banking” and repealing a contentious crypto accounting policy, which could provide a boost to the market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
El Salvador Expands Bitcoin Reserves Despite IMF Agreement
ONDOUSDC now launched for USDC-M futures trading
Abu Dhabi-backed VC firm invests $5 million in ZKsync-based crypto exchange GRVT
GRVT has raised $5 million in equity funding from Further Ventures, a VC firm backed by Abu Dhabi’s sovereign wealth fund, ADQ.The ZKsync-based hybrid crypto exchange recently launched its mainnet alpha — initially offering perpetual trading.
Bitcoin Fades From Highs After No Crypto Mentions During Trump's Inauguration Speech