Bitcoin Climbs Toward $84,000 as New York Fed's Williams Sees No Need for 2027 Rate Hikes
Key Takeaways
- •Bitcoin climbed 1.5% to just under $83,900 in Asian trading after New York Fed President John Williams said no additional rate hikes are needed in 2027.
- •Williams, a permanent FOMC voter, noted that one more hike this year may be appropriate, and Thursday's U.S. inflation report is the next test of that outlook.
- •Most major cryptocurrencies advanced, led by ZEC's nearly 7% jump to about $1,270, with SOL and DOGE each up 2.5% and ether rising 2% to roughly $2520.
- •Samsung Electronics and SK Hynix rallied to snap a five-day losing streak that had wiped out leveraged chip-stock bets placed on crypto exchanges, while the MSCI Asia-Pacific index rose 0.7%.
- •Brent crude gained 0.7% to about $106 a barrel as renewed Middle East attacks raised doubts about Persian Gulf energy shipments, adding an inflation variable ahead of Thursday's U.S. data.
Bitcoin climbed 1.5% to just under $83,900 during Wednesday's (Oct. 14) Asian morning session after New York Federal Reserve President John Williams said he saw no need for further rate hikes in 2027, a remark that weakened the U.S. dollar and lifted stock markets across Asia.
Williams, whose position makes him a permanent voter on the rate-setting Federal Open Market Committee, did note that one more hike this year may be appropriate. That standing lends outsized weight to his remarks on the policy outlook. His comments still helped the S&P 500 pare its losses on Tuesday, and S&P 500 futures rose 0.2% with the index hovering near last week's record.
Most major cryptocurrencies moved higher. ZEC led the majors, jumping nearly 7% to about $1,270, while SOL and DOGE each gained 2.5% and ether rose 2% to about $2,520, according to CoinDesk data. XRP, BNB and HYPE added between 1% and 2%, while TRX lagged with a gain of less than 1%.
Chipmakers recovered in Asia as well. Samsung Electronics and SK Hynix both rallied, snapping a five-day losing streak that had wiped out leveraged bets on chip stocks placed at crypto exchanges earlier in the week — a detail that underscores how some digital-asset venues give traders leveraged exposure to traditional equities. MSCI's Asia Pacific equities index rose 0.7%, rebounding from two days of losses that had pushed it to its lowest close since August. Chip-equipment maker ASML reports earnings on Wednesday, and Taiwan Semiconductor Manufacturing reports on Thursday.
Oil kept climbing. Brent rose 0.7% to about $106 a barrel as a flare-up in Middle East attacks raised doubts over a recovery in energy shipments from the Persian Gulf, while U.S. crude rose for a fifth straight day. Energy costs feed directly into the inflation gauges traders track, so the oil uptick adds another variable to this week's data calendar.
Thursday's U.S. inflation report is the next test of Williams' view. A reading cool enough to rule out that final hike would give bitcoin room to retest $85,000.
