Market Overview
Bitcoin edged higher above $92,000 on Friday as Asian stocks advanced in early trade. Investors took their cue from a fresh record on the S&P 500, although renewed weakness in Oracle stirred nerves around big tech and the artificial intelligence trade.
The market still lacks committed buyers, which leaves prices vulnerable, according to Samer Hasn, senior market analyst at XS.com. More than $220 million in long liquidations today show leveraged traders pulling back rather than positioning for a rebound.
ETF Inflows and Market Sentiment
For traders in Asia, the focus remains on positioning data and funding rates as much as on the headline price. One support pillar came from US spot Bitcoin exchange‑traded funds, which saw more than $223 million of net inflows on Thursday, the strongest reading in twenty days.
However, these flows may reflect short‑term positioning rather than sticky institutional demand and could reverse quickly if equity markets wobble again.
Federal Reserve Policy and Global Markets
Global markets have been recalibrating since the Federal Reserve delivered a third consecutive interest‑rate cut this week while sounding less hawkish than many feared. The move helped lift the MSCI All Country World Index to a new closing high and pushed the dollar index down to a two‑month low near 98.30, as traders leaned into the idea that policy is slowly shifting toward easier settings.
Fed funds futures now imply about a 75.6% chance that the central bank will hold rates at its next meeting on Jan. 28, up from roughly 73.9% a day earlier. Traders are still betting on two cuts in 2026 even though the Fed’s latest projections point to only one.
Asian Market Performance
In equity markets, MSCI’s broad index of Asia Pacific shares outside Japan rose about 0.7%, tracking Thursday’s mostly higher close in the US, where the Dow and Russell 2000 both notched new highs while the Nasdaq dipped.
The move extended a global rally that has favoured cyclicals and small caps, a backdrop that often helps sentiment in higher‑beta assets such as crypto.
Japan’s Market Performance
Tokyo’s Nikkei 225 outperformed in morning trade, climbing around 1%. Shares in SoftBank Group jumped about 6% after a Bloomberg News report said the conglomerate is considering an acquisition of the US data‑centre company Switch Inc, a deal that investors see as another way to capitalise on rising demand for AI infrastructure.
Tech Sector Sentiment
Futures pointed to a more cautious open for Wall Street. S&P 500 e‑mini contracts were little changed in Asian hours, while Nasdaq futures slipped about 0.2% after Oracle shares plunged 13% overnight. The company’s heavy spending plans and weak forecasts fanned doubts over how quickly large AI investments will translate into profit, triggering a fresh round of tech selling.
Tech sentiment was mixed even within the AI complex. Broadcom projected first‑quarter revenue above Wall Street estimates, offering some reassurance, but its shares fell about 5% in late trading after it warned that margins would narrow because a higher share of sales is coming from AI.
Conclusion
As Bitcoin and Asian markets show gains, investors remain cautious, keeping an eye on Federal Reserve signals, ETF flows, and tech sector developments.
