Bitcoin and Gold Pare Losses as Yen Weakens, While Oil Near $100 Raises Inflation Concerns
Bitcoin and gold staged a recovery during Friday’s Asian trading hours as the Japanese yen reversed its earlier advance and regional stock markets rebounded. Still, oil prices hovering around $100 continued to fuel concerns about inflation and the outlook for risk assets.
Bitcoin climbed toward $82,000 after briefly falling below $81,000 overnight, according to CoinDesk data. The cryptocurrency, which leads the market by capitalization, was testing its 50-day simple moving average, a widely monitored indicator of short-term price trends.
Ether, XRP, Solana and Dogecoin also moved higher alongside the broader crypto market.
Crypto Futures Liquidations Hit $435 Million
Leveraged cryptocurrency positions worth approximately $435 million were liquidated over the previous 24 hours. Long positions represented $385 million of the total, indicating that bullish traders had accumulated significant exposure before the market downturn.
Gold also recovered, rising to about $4,020 per ounce after touching $3,986 earlier in the session. The earlier price marked the lowest level since July 29.
Asian equities joined the rebound, with Japan’s Nikkei and South Korea’s Kospi recovering from intraday lows. Nasdaq futures advanced 0.17% to 29,190 after previously reaching 29,022.
Japanese Inflation Data Initially Supports Yen
The yen strengthened to 156.07 against the U.S. dollar during early trading, reaching its highest level since September 18. The move added to a cautious market mood as hotter-than-expected Japanese inflation figures increased expectations of further interest rate increases by the Bank of Japan.
Demand for traditional safe-haven assets, driven partly by concerns about artificial intelligence-related market volatility, also supported the currency.
The yen is closely watched by global investors because it is frequently used to fund carry trades, in which traders borrow at relatively low rates to invest in higher-yielding assets.
However, the rally quickly lost momentum, with the currency weakening toward 157 per dollar. The reversal coincided with a recovery in Asian stocks and other financial markets.
Oil Near $100 Keeps Inflation Risks in Focus
Crude prices remain a key uncertainty for the market recovery. West Texas Intermediate futures continued trading near $100 despite U.S. President Donald Trump invoking a Cold War-era law intended to increase fuel production.
The move has yet to deliver a significant reduction in oil prices.
If energy costs remain elevated, inflation could rise across major economies, potentially limiting central banks’ flexibility on interest rates and weighing on investments considered more sensitive to economic conditions.
Bitcoin ETF Outflows Challenge a Sustained Rally
Bitcoin also lacks a consistent source of institutional buying. Stronger inflows into U.S.-listed spot Bitcoin exchange-traded funds could help support a more durable recovery.
Preliminary data from SoSoValue showed that the funds recorded $381 million in net outflows on Thursday.
With ETF demand subdued and oil prices still high, Bitcoin’s rebound may face difficulty gaining traction unless broader investor sentiment improves.
