Bitcoin Reclaims $90K as Risk Sentiment Rebounds

Bitcoin’s move back above $90,000 led a rebound across global markets after Monday’s selloff linked to hawkish Bank of Japan comments. European equities were set for a steady open ahead of remarks from ECB President Christine Lagarde, while investors continued to price an 85% chance of a 25bp US Fed cut next week and potential leadership changes at the Fed.

Equities

The FTSE 100 closed flat on Tuesday, with financial stocks offsetting losses across consumer staples and mining shares. The Bank of England reduced capital requirements for lenders for the first time since the financial crisis, lifting sentiment in the sector. Lloyds Banking Group closed 1.9% higher on Tuesday and Barclays rose 1.6% as investors reacted to the change, which signalled greater lending flexibility ahead.

Aerospace and defence names also advanced, with Rolls-Royce and BAE Systems each closing about 0.9% higher. In contrast, precious-metal miners fell sharply after a decline in gold prices, with Fresnillo closing 3.3% lower and Endeavour Mining down 4.9%. Industrial metal miners slipped as copper prices weakened, pushing Anglo American 1.3% lower by the close.

Homebuilders also struggled, with Barratt Redrow closing 1.7% lower and Berkeley Group down 3.2% after RBC issued downgrades on both stocks. Consumer staples declined too, with Diageo, Unilever and Marks & Spencer falling between 1.3% and 2.1% on the day.

In the United States, equities advanced late on Tuesday, marking a sixth rise in seven sessions as markets remained focused on the upcoming Federal Reserve meeting. The Dow Jones Industrial Average closed 0.39% higher, helped significantly by Boeing, which surged 10.1% after forecasting higher deliveries of its 737 and 787 jets for 2026. Boeing’s jump contributed roughly 117 points to the Dow’s gain and helped lift the S&P 500 industrials sector by 0.9%.

The S&P 500 closed 0.25% higher and the Nasdaq rose 0.59%, supported by gains in large technology stocks. Apple, Nvidia and Microsoft each closed about 1% higher, while Intel also climbed during Tuesday’s session.

Warner Bros Discovery rose 2.8% after reports indicated it received a second round of bids, including an approach from Netflix. Procter & Gamble moved lower, closing down 1.1% after the company said the US government shutdown would affect its results.

Crypto-linked stocks also strengthened as bitcoin stabilised following heavy losses on Monday. MicroStrategy closed 5.8% higher and Coinbase rose 1.3% as cryptocurrency markets regained some ground. Trading volumes across US exchanges remained subdued, with total turnover at 15.35 billion shares, below the 20-day average of 18.42 billion.

Forex & Commodities

The US dollar was steady, with traders preparing for the Federal Reserve meeting next week, where markets continue to expect a rate cut. The euro edged up to $1.1640, supported by its break above its 50-day moving average following euro zone inflation data on Tuesday. Sterling was slightly firmer at $1.3235, while the Swiss franc held near 0.8017 per dollar. The Japanese yen was steady at 155.70 per dollar as markets looked ahead to a possible rate hike this month. The Australian dollar rose to $0.6584 after GDP data came in slightly below expectations, and the Indian rupee weakened past 90.00 per dollar amid soft trade and portfolio flows. Analysts also noted that some investors were assessing the potential impact of Kevin Hassett being nominated as the next Fed chair.

Bitcoin moved higher for a second day, rising early on Wednesday to $93,630 after a surge the previous session. Analysts at IG suggested that holding above the $80,540 level could keep the focus on the $95,000–$100,000 range.

Spot gold was steady around $4,206 per ounce in Asia trading on Wednesday after falling more than 1% on Tuesday. Investor attention remained on US data due over the week, including the ADP employment report and the delayed September PCE Index. Silver traded at $57.87 per ounce after touching a record high of $58.94 earlier in the session. Platinum moved up to $1,651 per ounce, while palladium slipped to $1,447.

Oil prices were stable by midday on Wednesday after two sessions of declines, with Brent crude at $62.47 and West Texas Intermediate at $58.67. Traders monitored Russia-Ukraine peace discussions and reports that any progress could influence sanctions on Rosneft and Lukoil, whose restricted exports remain a factor for supply. Rising US inventories also attracted attention ahead of official data from the Energy Information Administration later on Wednesday.