Bitcoin Nears $90K—Are You Missing Out While Stocks Crash? Shocking Fed Cut Implications Inside!

As the weekend approaches, Bitcoin is holding steady near the $90k mark in Asian trading, showing little movement as it fluctuates between approximately $90,600 and $91,400. This stability comes after the cryptocurrency touched a peak of around $91,800 within the last 24 hours. Meanwhile, regional stock markets are facing challenges, with investors weighing the implications of a strong global economic rebound against signs that this rally could be losing momentum.

Currently, Bitcoin is priced at $90,868, reflecting a slight decline of 0.2%. Other cryptocurrencies are also experiencing downward trends, with Ether trading at $3,001 (down 1.6%) and XRP at $2.17 (down 2.2%). Overall, the total cryptocurrency market capitalization stands at approximately $3.18 trillion, down 0.9% as investors remain cautious.

Amid this backdrop, attention is keenly focused on developments in China, particularly after JPMorgan upgraded its outlook on the Chinese market to "overweight." The bank argues that the potential for significant gains in the coming year now outweighs the risks, despite ongoing pressures on property developers like China Vanke.

Asian equities opened the trading day mixed, with South Korean and Japanese indexes declining while Australia showed slight gains amid holiday-affected trading following the US Thanksgiving break. The mixed performance is reflective of the broader global sentiment that has been heavily influenced by expectations surrounding the Federal Reserve's monetary policy. Futures markets are currently pricing in an 80% to 85% likelihood of a quarter-point interest rate cut next month, with potential for three cuts by the end of 2026.

This shift in market sentiment has allowed global stocks to recover much of their November losses, which were largely driven by concerns regarding high valuations in tech stocks, particularly those related to artificial intelligence. In the bond market, a recent rally in Treasuries has cooled, with the 10-year yield hovering around 4% after stronger-than-expected US labor market data. This data had previously interrupted the decline in yields, which had been falling since late last week.

Trading volumes have been notably thinner than usual, influenced by a holiday-shortened trading week and the recent 43-day US government shutdown, which delayed key economic data releases. As a result, investors are increasingly relying on comments from Federal Reserve officials for guidance. Recent remarks from San Francisco Fed President Mary Daly and Governor Christopher Waller have bolstered expectations of a rate cut in December.

In the cryptocurrency sector, US spot Bitcoin ETFs are still attracting capital, albeit at a slower pace compared to earlier in the year. On November 26, the ETFs reported daily total net inflows of about $21 million, bringing cumulative net inflows to approximately $57.6 billion. Total trading value for the day reached around $4.6 billion, with net assets across the ETF complex amounting to about $117.7 billion, equivalent to roughly 6.6% of Bitcoin’s market value.

Notably, BlackRock’s iShares Bitcoin Trust (IBIT) saw significant net inflows of approximately $42.8 million, pushing its total assets to around $69.9 billion. In contrast, Fidelity’s FBTC experienced an outflow of about $33.3 million, and Grayscale’s converted GBTC vehicle reported a modest inflow of $5.6 million but still reflects cumulative net outflows of about $25 billion since the launch of spot ETFs. Meanwhile, smaller ETF products from firms like Bitwise, Ark 21Shares, and VanEck remained largely flat.

These figures indicate a significant shift in structural demand toward regulated investment vehicles, with IBIT alone accounting for about 3.9% of the Bitcoin market. The broader ETF suite now represents a meaningful portion of circulating Bitcoin supply.

For Asian traders waking up to a slightly softer cryptocurrency market and wavering local equities, the combination of heavy ETF ownership and rising expectations of Federal Reserve interest rate cuts is likely to set the tone as the year draws to a close. However, the cautious price movements in both Bitcoin and stocks suggest that investors are treading carefully after an explosive week of trading.