Bitcoin held above $80,000 as South Korean tech stocks recovered from a sell-off and traders lowered their expectations for a Federal Reserve interest-rate hike.
Bitcoin (BTC) traded near $82,000 around Friday’s Wall Street open as crypto markets stabilized alongside a rebound in South Korean stocks.
Data from TradingView showed BTC/USD holding most of its reclaimed ground after bouncing at $80,000 on Thursday.
BTC/USD four-hour chart. Source: Cointelegraph/TradingView
The earlier decline followed a weeklong sell-off in South Korean tech stocks, although Friday’s Asian trading session brought some relief. The KOSPI Composite Index closed at 5,668, up 2% on the day but still down 8.3% for the week.
KOSPI Composite Index one-day chart. Source: Cointelegraph/TradingView
US stocks largely avoided the sell-off in Asian markets but were mixed on Friday, with the tech-heavy Nasdaq Composite Index down 0.5% and the S&P 500 up 0.5%.
Meanwhile, Federal Reserve Chair Kevin Warsh offered investors some relief by avoiding any mention of further interest-rate hikes during a discussion with International Monetary Fund (IMF) Managing Director Kristalina Georgieva.
“I don’t prejudge meetings. I don’t believe in saying now what I might do at the meetings that we have in the balance of this year,” he said.
Markets appeared to take Warsh’s tone as a dovish signal on rate hikes. Data from CME Group’s FedWatch Tool showed the probability of a 25-basis-point rate hike in October falling to 15%, down from 27% the previous day.
Fed target-rate probabilities for October FOMC meeting (screenshot). Source: CME Group
Economist Robin Brooks suggested that stress in the AI sector, a key driver of the Korea sell-off, could be at the heart of the Fed chair’s more aloof approach.
Source
This article is syndicated for educational reading. For the latest updates, visit the original publisher.
Read on cointelegraph.com
