LIVE MARKETS-Bitcoin in search of Santa rally after Fed-fueled selloff

Reuters12-19 22:15
LIVE MARKETS-Bitcoin in search of Santa rally after Fed-fueled selloff

U.S. equity index futures green: S&P 500 up ~0.8%

Philly Fed business index -16.4 vs 3.0 estimate

Euro STOXX 600 index down >1%

Dollar down; gold, crude gain; bitcoin up >1%

U.S. 10-Year Treasury yield rises to ~4.54%

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BITCOIN IN SEARCH OF SANTA RALLY AFTER FED-FUELED SELLOFF

Bitcoin is staging a minor recovery on Thursday, climbing above the $102,000 mark after suffering heavy losses in the last session when the U.S. Federal Reserve's latest monetary policy decision and the outlook for rates shook global risk assets.

The world's biggest cryptocurrency BTC= is up 1.1% to $102,028 after briefly falling below the $100,000 level earlier in the day and a more than 5% slide in the previous day.

"Bitcoin fell below $100K briefly before rebounding, demonstrating the strength of this key support level," said Balentin Fournier, an analyst at BRN.

"Catalysts such as discussions of a potential National Reserve and growing corporate adoption of Michael Saylor's Bitcoin strategy have bolstered the ongoing bull run."

Global risk assets around the world suffered steep losses after the Federal Reserve on Wednesday cut interest rates as expected, but Chair Jerome Powell said more reductions in borrowing costs now hinge on further progress in lowering stubbornly high inflation.

In a further blow to bitcoin, Chair Powell said on Wednesday the U.S. central bank has no desire to be involved in any government effort to stockpile large amounts of bitcoin.

The Fed chief was addressing the prospect of central bank involvement in the idea of the government building a so-called Strategic Bitcoin Reserve once President-elect Donald Trump takes office.

Crypto-linked stocks listed in the United States are also advancing in premarket trading with exchange operator Coinbase COIN.O up 4%, BTC miner MARA Holdings MARA.O adding 3.4%, and MicroStrategy MSTR.O, the biggest corporate holder of bitcoin, advancing 4%.

On the other hand, even while bitcoin and other larger tokens tumbled, a meme coin called Fartcoin jumped more than 22%, taking its market capitalization to over $1 billion from about $814 million, as per CoinGecko data.

(Shashwat Chauhan)

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FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:

S&P 500 INDEX WALLOPED, BUT IS IT WASHED OUT? - CLICK HERE

HERE COMES THE BOE - CLICK HERE

GOLD: STILL A GOOD CHRISTMAS GIFT - CLICK HERE

FED SENDS STOXX 600 TO NEAR THREE-WEEK LOW - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES SLIDE ON FED OUTLOOK - CLICK HERE

JAPAN HOLDS, BANK OF ENGLAND UP NEXT - CLICK HERE

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