Bitcoin and Gold Bounce as Yen Retreats, but Oil Near $100 Fuels Inflation Worries
Bitcoin and gold recovered from early losses during Friday’s Asian session as the Japanese yen reversed its gains and regional equities moved higher. However, crude oil prices near $100 continued to cloud the outlook for inflation and risk assets.
Bitcoin climbed toward $82,000 after dropping below $81,000 overnight, according to CoinDesk data. The largest cryptocurrency by market value was testing its 50-day simple moving average, a technical indicator commonly used to assess short-term price momentum.
Other major digital assets, including Ether, XRP, Solana and Dogecoin, also rebounded during the session.
Leveraged Crypto Traders Face $435 Million in Liquidations
Crypto futures markets recorded $435 million in liquidations over the past 24 hours, with long positions accounting for $385 million. The figures indicate that bullish traders carried a substantial share of the market’s leverage before prices moved lower.
Gold also recovered from its early decline. The precious metal rose to approximately $4,020 per ounce after falling to $3,986, its lowest level since July 29.
Equity markets across Asia staged a similar recovery. Japan’s Nikkei and South Korea’s Kospi climbed from their session lows, while Nasdaq futures gained 0.17% to reach 29,190, compared with an earlier low of 29,022.
Yen Rally Fades After Japanese Inflation Data
The initial cautious mood intensified when the yen strengthened to 156.07 per dollar, its highest level since September 18.
Japanese inflation data that exceeded expectations increased speculation that the Bank of Japan could deliver additional interest rate hikes. Demand for safe-haven assets amid concerns about volatility linked to artificial intelligence also supported the currency.
The yen’s movements can influence markets worldwide because investors frequently borrow it to finance carry trades in higher-yielding assets.
However, the currency quickly surrendered much of its advance, moving back toward 157 per dollar. The reversal coincided with gains in Asian stocks and a recovery in cryptocurrencies and gold.
Crude Oil Remains a Major Market Risk
Oil prices could determine whether the broader recovery continues. West Texas Intermediate futures remained near $100 even after U.S. President Donald Trump invoked a Cold War-era law designed to boost domestic fuel production.
The action has not yet significantly reduced crude prices.
Persistently expensive oil could push inflation higher worldwide, potentially complicating central bank decisions on interest rates and creating additional pressure on risk-sensitive investments.
Bitcoin ETF Outflows Weigh on Bullish Momentum
Bitcoin’s recovery also faces a hurdle from institutional investment flows. A sustained price advance may require stronger demand through U.S.-listed spot Bitcoin ETFs.
Preliminary data from SoSoValue showed that these funds experienced $381 million in net outflows on Thursday.
With ETF demand weakening and energy prices remaining elevated, Bitcoin’s latest rebound may prove difficult to sustain unless investor appetite for risk improves.
