U.S. President Donald Trump said on Sunday he has decided on his nominee for the Federal Reserve, clarifying that he expects his pick to implement interest rate cuts. Asian stock indices showed volatility in early trading after ending last week with their best weekly performance in about two months, while S&P 500 futures edged lower. Cryptocurrencies plunged sharply today, reigniting a broad wave of selling that had seemed to ease in previous days. Bitcoin fell by as much as 6% to below $86,000 during Asian morning trade, while Ether dropped more than 7% to below $2,800, according to data compiled by Bloomberg. Most other cryptocurrencies also declined, with Solana falling 7.8%. The cryptocurrency market remains on shaky ground after a weeks-long selloff that began when about $19 billion in leveraged bets were liquidated in early October, just days after Bitcoin hit a record high of $126,251. The easing of selling pressures last week allowed the digital asset to recoup some gains, rising above $90,000. The market is bracing for a bigger drop After today's new wave of selling, traders are bracing for a bigger drop. "It's the beginning of a December risk-off," said Sean McNulty, head of derivatives trading for Asia-Pacific at FalconX. He added, "The biggest concern is the anemic flows into Bitcoin ETFs and the absence of buyers on the dips. We're watching the $80,000 level for Bitcoin as the next key support level." Next week is expected to provide a crucial indicator of U.S. economic momentum as policymakers assess the path of interest rates toward 2026. The upcoming data is likely to impact expectations for the Federal Reserve to continue its rate-cutting cycle. We expect structural headwinds to persist this month.
