Markets Rally as Dollar Weakens, Bitcoin Nears $84K Amid Fed Signals

Bitcoin climbed about 1.5% to just below $83,900 in Wednesday Asian trading, buoyed after remarks from New York Fed President John Williams that he does not foresee the need for further rate hikes in 2027. The dollar softened and equity markets across Asia reacted positively.

Williams did note, however, that one additional rate increase this year could still be appropriate — a caveat that left investors attentive ahead of key U.S. data later this week.

Cryptocurrency movers and market breadth

Among major cryptocurrencies, ZEC led gains, surging nearly 7% to about $1,270. SOL and DOGE both rose roughly 2.5%, while ether advanced about 2% to near $2,520. XRP, BNB and HYPE added between 1% and 2%. TRX underperformed, marking a gain of under 1%, according to CoinDesk data.

Equities and chip sector recovery

Williams’ comments helped the S&P 500 trim losses on Tuesday, and S&P 500 futures were up about 0.2% as the index hovered near last week’s record high. In Asia, chipmakers staged a rebound: Samsung Electronics and SK Hynix rallied, breaking a five-day slide that had erased leveraged positions on exchange-traded crypto-linked chip bets.

Overall, MSCI’s Asia Pacific equities index rose 0.7%, recovering from two days of declines that had pushed it to its lowest close since August. Investors are eyeing earnings from chip-equipment maker ASML on Wednesday and Taiwan Semiconductor Manufacturing’s results on Thursday.

Commodities and the near-term outlook

Oil continued upward, with Brent crude climbing about 0.7% to roughly $106 a barrel as renewed Middle East attacks raised concerns about a smooth rebound in Persian Gulf shipments. U.S. crude logged a fifth consecutive daily gain.

Markets now turn to Thursday’s U.S. inflation report as a pivotal test of Williams’ view. A softer reading that removes the case for that possible extra hike would likely give bitcoin room to test the $85,000 level.