KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Market Snapshot
Bitcoin (BTC): –1.9% at ~US$111,119 (24h), down from its record high of US$124,000 earlier this month.
Ethereum (ETH): –2.9%.
Ripple (XRP): –3.6%.
Solana (SOL): +1.0%.
Dogecoin (DOGE): –2.4%.
Why Cryptos Are Falling
Interest Rate Uncertainty
Optimism over U.S. rate cuts had helped drive Bitcoin to new highs earlier in August.
Markets are reassessing expectations as President Donald Trump pressures the Federal Reserve for lower rates, while Fed Governor Lisa Cook challenges his move to dismiss her.
Without clear dovish signals, risk assets like crypto face headwinds.
Dollar Dynamics
Lower rates typically weaken the dollar, lifting crypto valuations.
With Fed policy still uncertain, the dollar remains firm, creating a drag on digital assets.
Investor Sentiment
Analysts note markets are reluctant to price in substantial dovish shifts until concrete data supports them.
ING’s Francesco Pesole: “Markets are seemingly staying away from pricing in any substantial dovish shifts at the FOMC beyond what can be derived from data.”
Investment Takeaway
Crypto remains highly sensitive to U.S. monetary policy expectations, trading more like a high-beta risk asset than a currency hedge.
While Bitcoin and Ethereum have pulled back from record highs, the macro driver is Fed policy clarity rather than sector fundamentals.
Investors should watch the September 17 FOMC meeting as the next key catalyst.
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