Bitcoin rose approximately 2% during Asian trading hours on Wednesday, holding above $87,000, as regional shares edged higher. Traders are focused on the upcoming US Consumer Price Index (CPI) data release, which will provide crucial clues on the Federal Reserve's potential room to cut interest rates in 2026.
Market analyst Akshat Siddhant of Mudrex noted that despite macroeconomic uncertainty, Bitcoin's exchange reserves sitting at record lows have supported the upside, giving bulls an edge. He suggested that if momentum holds, BTC could advance toward $90,000, with support gradually moving higher to the $86,000 zone.
Equity markets remained measured across the Asia-Pacific region following a mixed US jobs report and soft purchasing managers' data. A Labor Department report showed nonfarm payrolls rose by 64,000 jobs in November after an October drop linked to government spending cuts, with the unemployment rate climbing to 4.6%. Separate figures showed retail sales were flat in October, slightly below economists' expectations.
Investment analyst Nic Puckrin of Coin Bureau highlighted that year-end tax-loss selling is adding pressure, with Bitcoin among the assets where many investors are sitting on losses. He warned this dynamic could weigh on prices into the end of 2025 and leaves room for a slide below $80,000 if the sell-off deepens. In the near-term, he pointed to the ETF cost basis around $83,800 as a key level, with further support near $81,200.
In other market developments, South Korea's central bank unexpectedly reduced its benchmark interest rate by 25 basis points to 3.0%, marking the first back-to-back rate cuts since 2009. This move comes amid concerns over sluggish economic growth, with third-quarter GDP expanding by just 1.5% year-on-year.
US rate expectations also face additional uncertainty following reports that President Donald Trump is set to interview Fed Governor Christopher Waller for the Fed chair role, adding another variable to a week already driven by CPI risk. Traders are also watching the Bank of Japan ahead of Friday's policy decision, with markets leaning toward a rate increase as the yen stays weak and inflation remains sticky.
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