Bitcoin Retreats After Crossing $100K Amid Fed Rate Uncertainty

Bitcoin retreated to $97,444 after briefly surpassing $100,000, amid anticipation of US payroll data that could shape Federal Reserve rate decisions. The Korean won dropped 1% and the KOSPI fell 1.8% amid martial law fears, though stabilizing actions by South Korean authorities provided relief. European markets opened lower, with futures pointing to declines across EUROSTOXX 50 and FTSE indexes.

Equities

The FTSE 100 rose 0.2% on Thursday, supported by gains in the personal goods sector. Watches of Switzerland surged 14.2%, reaching a ten-month high, after reaffirming its 2025 guidance. However, Frasers dropped 10.6% to a two-year low after cutting its annual profit forecast, blaming higher taxes and falling consumer confidence.

The real estate sector struggled, with British Land losing 4.9% as Berenberg reduced its target price from 500p to 480p. Shell fell 1.4% after announcing it would merge its British North Sea assets with Equinor to form the region's largest oil and gas company.

In the United States, the S&P 500 declined 0.19% to 6,075, the Dow Jones Industrial Average fell 0.55% to 44,765, and the Nasdaq Composite slipped 0.18% to 19,700. Federal Reserve Chair Jerome Powell highlighted a stronger-than-expected economy, suggesting a more cautious approach to further rate cuts.

Tesla saw a modest decline, while Apple edged lower as investors awaited key economic data. Bitcoin, meanwhile, hit the $100,000 milestone before settling at around $99,400, boosted by regulatory optimism after Paul Atkins, a pro-crypto advocate, was nominated to head the SEC.

France's CAC 40 climbed 0.4%, even as Prime Minister Michel Barnier resigned following a confidence vote that toppled his government. Despite political instability, markets had largely priced in the event, leaving French equities and the euro steady.

European banking stocks contributed to gains, while construction and materials dipped, reflecting weaker residential housebuilding activity in November.

Forex & Commodities

The US dollar edged higher, with the dollar index up 0.10% at 105.82, as markets awaited the US non-farm payrolls report. The South Korean won weakened 0.42% to 1,419.27 against the dollar, impacted by ongoing political instability after President Yoon Suk Yeol briefly imposed martial law earlier in the week. Sterling traded slightly lower at $1.2748, down 0.09%, while the euro slipped 0.14% to $1.0573, poised for a fourth weekly decline as political turmoil continued in France. The yen strengthened 0.11% to 149.90 against the dollar after Japanese household spending data showed a smaller-than-expected drop.

Gold prices rose 0.2% to $2,638.45 per ounce, with futures adding 0.5% to $2,660.50, though bullion was on track for a second consecutive weekly loss. Investors remained cautious ahead of the US payrolls data, which is expected to influence Federal Reserve rate decisions. Silver remained steady at $31.35 per ounce, up over 2% for the week, while platinum and palladium showed modest gains but were heading for weekly losses.

Oil prices dipped, with Brent crude down 0.3% at $71.88 per barrel and West Texas Intermediate falling 0.2% to $68.15. The market reacted to OPEC+ extending deep output cuts until the end of 2026, though concerns about oversupply in 2025 and weak global demand weighed on sentiment. Analysts highlighted that non-OPEC supply growth is likely to exceed demand growth next year, further limiting the need for OPEC+ to reverse voluntary cuts.