Bitcoin Surpasses $100,000

By Tom Westbrook

SINGAPORE (Reuters) – Bitcoin broke $100,000 on Thursday as investors sought to capitalize on a favorable regulatory environment in the U.S. Meanwhile, Asian stocks remained stable following record highs on Wall Street driven by optimism about potential U.S. interest rate cuts.

Bitcoin reached $100,000 in the morning and was last recorded at $101,300.

"At the end of the day, it's just a number," stated Geoff Kendrick, global head of digital assets research at Standard Chartered.

"However, we’ve achieved this milestone due to the institutional growth in the industry this year, largely attributed to ETF inflows," he added, highlighting recently approved exchange-traded funds.

The S&P 500, Nasdaq, and Dow all reached record highs overnight. In recent weeks, markets have predominantly priced in an additional U.S. rate cut for 2025, with the likelihood of a cut in December rising from even odds to approximately 75%.

MSCI’s broadest index of Asia-Pacific shares outside Japan remained flat as losses in Hong Kong countered gains in Australia and Japan. Japan’s Nikkei Index climbed around 0.6%, reaching a three-week high.

The Hong Kong Hang Seng index, on the other hand, dropped about 1%.

The widely watched U.S. ISM survey indicated a slowdown in services sector activity for November, following significant gains in previous months. The benchmark 10-year Treasury yields declined by three basis points to 4.182% and remained stable in Asia.

Federal Reserve Chair Jerome Powell gave balanced remarks during a New York Times event, describing the economy as sound but showing no strong opposition to the market’s pricing for possible rate cuts. Fed Governor Christopher Waller earlier indicated he was leaning toward a cut in December.

European retail sales figures and German factory orders are expected later; however, attention is particularly on U.S. employment data forthcoming on Friday, as a robust report could change bond market movements.

"U.S. data has continued to exhibit resilience," commented RBC Capital Markets' chief economist Su-Lin Ong from Sydney, noting strong growth projections of 3.2% for the fourth quarter based on the Atlanta Fed's GDPNow estimate. "We believe the market has priced in too much."

S&P 500 futures dipped slightly, while European futures fell by 0.3%. German stocks have risen 4% over the week to reach record highs.

Dollar and Currency Movements

The dollar weakened alongside U.S. yield movements, albeit marginally. The euro was stable at $1.0520 amid political unrest in France, where the government lost a confidence vote for the first time since 1962.

The yen corrected some of its recent gains, with expectations for a December rate hike cooling after reports suggested caution from policymakers. The yen was firmer at 150.31 per dollar on Thursday. The Australian dollar fell to $0.6420 after experiencing its steepest decline in a month due to disappointing growth data.

South Korea’s financial markets were relatively stable following President Yoon Suk Yeol's recent failed attempt to impose martial law, which had previously triggered volatility and a political crisis.

Commodity Market Updates

In commodity trading, sustained expectations for Chinese monetary stimulus bolstered iron ore prices, while oil prices edged up ahead of an OPEC+ meeting. Brent crude futures saw a 0.2% increase to $72.42 per barrel, and gold prices stabilized at $2,649 an ounce.