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’s Rally Stalls Amid Market Uncertainty
- Bitcoin (BTC/USD) hit an all-time high of $109,225 on Jan. 20 following Trump’s inauguration, fueled by hopes of deregulation and a U.S. bitcoin reserve.
- Since then, BTC has fallen over 20% to $87,080, with a 7.3% drop on Tuesday alone.
- Support levels now sit at $70,000 - $75,000, according to market analysts.
What’s Driving the Decline?
Regulatory Uncertainty:
- Optimism over a Trump-led pro-crypto environment has been priced in, but no concrete policy changes have materialized.
- A crypto working group has been formed but won’t submit recommendations for another 180 days.
Scandals & Hacks:
- Argentina’s President Javier Milei faced backlash after a meme coin he promoted, Libra, crashed.
- Bybit, a top crypto exchange, suffered a $1.4 billion hack, raising security concerns.
Trump’s Trade Policies & Inflation Fears:
- New tariff threats—especially on semiconductors to China—could fuel inflation, impacting risk assets like crypto.
- Investors are seeing “bitter medicine” (tariffs, layoffs) but no “spoonful of sugar” (tax cuts, deregulation) yet.
Outlook: Can Bitcoin Recover?
- Bitcoin’s next rally depends on clear crypto-friendly policies from Trump’s administration.
- If market uncertainty persists, BTC could test the $70K-$75K range in the coming weeks.
Summary:
- Bitcoin tumbles 20% from its peak, falling below $87K due to regulatory uncertainty and macroeconomic concerns.
- Crypto market hit by scandals & security breaches, shaking investor confidence.
- Trump’s tariffs & inflation fears weigh on risk assets, contributing to Bitcoin’s pullback.
- Future price action hinges on clear regulatory steps from the administration.
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