Asian Market Open: Bitcoin Price Falls Below $90,000 and Stock Markets Fall in Anticipation of Late US Data Announcement

Hello Asia, here are the developments before the opening bell.

Bitcoin price fell below $90,000 as the Asian trading session opened on Tuesday, recording its lowest levels in 6 months, as traders reduced their risk exposure in anticipation of the release of key US data that was delayed due to the government shutdown.

Investors are focusing their attention on the nonfarm payrolls report for September, scheduled for release next Thursday, after the prolonged U.S. government shutdown led to a freeze on data release and left markets in a state of anticipation about developments in the world’s largest economies.

Expectations about the possibility of an interest rate cut have also changed, as market estimates of a Federal Reserve cut in December have fallen to around 40% after surpassing 60% earlier this month, prompting investors to preserve cash and commit to safe assets and stay away from high-risk transactions associated with the artificial intelligence and digital currency sectors.

Market Overview

• Bitcoin Price: $90,190, down 5.1%
• Ethereum Price (Ethereum-ETH): $2,994, down ~5.5%
• Ripple-XRP price: $2.15, down 4.5%
• Total value of digital assets: $3.17 trillion, down 4.4%

The wave of correction is affecting the stock sector, with US stocks closing sharply lower yesterday, Monday, after the values ​​of the Standard & Poor’s 500 (S&P 500) and Nasdaq (Nasdaq) indices fell below a significant support level for the first time since late April, as traders braced for earnings announcements from major retail companies and microchip specialist Nvidia, in addition to the postponed jobs report.

The general mood in crypto markets is weakening as traders rush to reduce their positions and reduce the use of leverage.

Asian markets followed a weak trajectory, with the MSCI-affiliated broad index of Asia-Pacific stocks excluding Japan falling 0.7%, while Japan’s Nikkei index fell more than 2%. The early decline reflects the atmosphere of anticipation of the release of U.S. data and Nvidia’s results, which many see as an indicator of the momentum in artificial intelligence investments that have fueled the majority of stock market gains this year.

The decline in Bitcoin’s price indicates a change in public mood, as its price fell below $90,000, its lowest level in about 6 months, amid a rush to reduce their open positions based on expectations of an easing of severity from the Federal Reserve.

Commenting on this, Gadi Chait, Chief Investment Officer of Xapo Bank, said that these moves worry new market participants more than long-term fund holders, explaining that this setback reflects the liquidation of leveraged speculation and rebalancing of investment portfolio assets, and is not the end of the story of sustainable adoption of digital assets.

He added: “While some are looking for specific catalysts, whether the residual effects of October’s deleveraging or a change in macroeconomic factors in general, the exact reason is largely secondary. Periodic declines are a familiar feature of this market, and long-time investors in the space are aware of this trend. We have seen it before and we will see it again.”

Awaiting release of US data after government lockdown ends, markets lacking clarity

The tone of the analysts of the Bitfinex platform was similar to the previous one, as they highlighted the magnitude of the recent decline by stating: “Statistically, and taking into account the setback which represents the third strongest wave of decline since 2023 and the second strongest since the launch of Bitcoin ETFs by the main US service providers, it seems that the time has come for an imminent intermediate bottom. »

As a result, the general sentiment around stocks remained very fragile, with stocks coming under increasing pressure this month as investors questioned whether enthusiasm for artificial intelligence technologies had pushed stock market valuations to exaggerated levels, particularly with falling growth indicators and continued monetary tightening policies. Nvidia’s results tomorrow Wednesday are at the heart of this controversy.

Despite the end of the longest government shutdown in U.S. history to resume data releases, a lack of information forced markets to trade in the absence of some evidence of economic conditions, while private polls pointed to signs of a slowdown, even as federal officials resisted the trend toward accelerating monetary easing.

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