KUALA LUMPUR, Jan 7 (Bernama) -- Bursa Malaysia’s benchmark index rebounded from earlier losses to close at its intraday high on Wednesday, gaining 0.27 per cent in late trading as buying interest returned to selected heavyweights. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 4.48 points to 1,676.83 from Tuesday’s close of 1,672.35. The benchmark index opened 0.88 of-a-point lower at 1,671.47 and subsequently hit a low of 1,665.94 during the mid-morning session before gaining momentum toward closing. On the broader market, losers led gainers by 565 to 512, while some 526 counters were unchanged, 1,046 untraded, and 10 suspended. Turnover improved to 2.73 billion units worth RM2.76 billion versus Tuesday’s 2.66 billion units worth RM2.76 billion. Dealers said that investors were cautious following geopolitical developments in Asia.
Bitcoin has seen a sharp decline, falling 7.3% in 24 hours to $94,976, according to CoinDesk data, after briefly hitting record highs earlier this week. The drop comes as the Federal Reserve’s hawkish tone on future rate cuts spooked markets.
Key Drivers Behind Bitcoin's Slide
- Fed’s Rate Signals: The Federal Reserve announced fewer anticipated interest rate cuts for 2025, dampening market sentiment across equities and cryptocurrencies.
- Broader Market Pullback: Bitcoin's decline follows the S&P 500's 2.95% drop on Wednesday, its worst Fed decision-day performance in nearly 15 years.
- Upcoming PCE Inflation Data: The Personal Consumption Expenditures (PCE) report, a key inflation measure, is expected to further shape expectations for rate cuts and could impact crypto prices.
Market Sentiment
- Cyclical Nature: Analysts view Bitcoin's pullback near the $100K psychological level as part of its natural cycles, where indecision and hype around milestones often lead to short-term corrections.
- Sector-Wide Pressure: The broader crypto sector has been affected, with strategist Louis Navellier citing the equity market’s pullback as a contributing factor.
Analyst Insights
- Resilience Amid Declines: FxPro analyst Alex Kuptsikevich noted that Bitcoin's drop mirrors stock market declines but demonstrates relative strength compared to its historically larger losses during pullbacks.
- Outlook for 2025: Kuptsikevich highlighted that Bitcoin’s cyclical trends could set the stage for further price growth next year, particularly as regulatory clarity under the incoming Trump administration boosts investor confidence.
Big Picture
Despite this week’s turbulence, Bitcoin remains up 130% year-to-date, fueled by optimism surrounding a pro-crypto regulatory environment under Donald Trump’s administration. However, its cyclical nature and sensitivity to macroeconomic shifts underscore the importance of cautious optimism as it continues to test the $100K level.
Comments
Post a Comment