Bitcoin and gold recovered some losses during Friday's Asian trading as stocks rebounded and the yen surrendered early gains. CoinDesk data showed bitcoin, the largest cryptocurrency by market value, recovering to nearly $82,000 after an overnight decline below $81,000. Bitcoin was testing the 50-day simple moving average, a commonly used measure of short-term market momentum. Ether, XRP, solana and dogecoin made similar recoveries.
Liquidations of crypto futures positions totaled $435 million over the past 24 hours, including $385 million in long positions. The concentration in longs indicated that leverage favored bullish positions. Gold recovered to $4,020 per ounce after an early decline to $3,986, a price last reached on July 29.
Major stock indices in Asia, including Japan's Nikkei and South Korea's Kospi, recovered from session lows. Nasdaq futures gained 0.17% to 29,190 after trading at 29,022 earlier in the day.
Risk aversion intensified early in Asian trading as the yen strengthened to 156.07 per U.S. dollar, the strongest level since September 18. Japan's higher-than-expected inflation reinforced expectations that the Bank of Japan would raise rates further, supporting the yen. Concerns about artificial intelligence also increased demand for the yen as a haven. Yen fluctuations often affect global markets because investors have long used the currency to finance risk-taking through carry trades. However, the yen soon reversed those gains and weakened toward 157 per U.S. dollar.
Oil prices may also determine whether the recovery in risk appetite persists. WTI futures traded near $100 despite U.S. President Donald Trump invoking a Cold War-era law intended to increase fuel production. Trump's action has not yet substantially reduced oil prices. A prolonged oil-price increase could intensify global inflation and pressure risk assets. Spot bitcoin ETFs lack the sustained demand needed to support a sharp price rally. Preliminary SoSoValue data showed that U.S.-listed spot bitcoin ETFs recorded $381 million in outflows on Thursday. Persistently expensive oil and weak spot bitcoin ETF demand could constrain a broader rally in risk assets.