Bitcoin traded near $82,000 on Friday as cryptocurrency markets stabilized following a rebound in South Korean technology stocks and declining expectations of a Federal Reserve interest-rate hike in October.
Bitcoin (BTC) held above the $80,000 level after recovering from Thursday’s decline. South Korea’s KOSPI Composite Index rose 2% on Friday to close at 5,668 points, providing some relief after a sharp sell-off in technology stocks. However, the index remained down 8.3% for the week.
Federal Reserve Chair Kevin Warsh also eased some investor concerns by avoiding signals of further interest-rate increases during a discussion with International Monetary Fund Managing Director Kristalina Georgieva. Following his remarks, market expectations for a 25-basis-point rate hike in October declined to 15%, compared with 27% a day earlier, according to CME Group’s FedWatch Tool.
US stock markets showed mixed performance, with the Nasdaq Composite falling 0.5% while the S&P 500 gained 0.5%. Meanwhile, the US 10-year Treasury yield climbed to around 5.07% after briefly reaching 5.13%, reflecting continued uncertainty over inflation, monetary policy and financial markets.
Economist Robin Brooks suggested that concerns about a potential downturn in the artificial intelligence sector could be encouraging a more cautious approach from the Federal Reserve. Analysts also warned that persistent inflation and rising bond yields could create challenges for policymakers, even as investors look for signs of a broader stock market recovery.
Bitcoin’s near-term direction will likely depend on changing expectations for US interest rates, developments in global financial markets and broader investor sentiment toward riskier assets.