Bitcoin Drops 5% After Hitting $100,000 as Strong US Economic Data Fuels Fed Rate Cut Expectations – Century Financial

• Crude Oil

Oil rose for a second day after an industry report pointed to another decline in US crude inventories. Oil has had a strong start to 2025, with prices breaking out of a months-long range, but many analysts continue to warn of a glut this year and technical indicators signaled the advance may have run too far. The market is also bracing for a second presidential term from Donald Trump.
Futures pushed higher on Tuesday — reversing earlier losses — as frigid weather in the US boosted demand for heating fuel, and raised the risk of freeze-offs in production areas, while northern Europe is also facing snow and ice.
“Cold fronts in the US and Europe are driving crude higher, with some support from concerns over the loss of Iranian barrels if the Trump administration tightens sanctions,” said Vandana Hari, founder of Vanda Insights in Singapore. “Nonetheless, crude looks overbought. It may yield to profit-taking, though that might need a reminder of the global economic headwinds.”
In a sign of tightening supply, Russian data show that its oil production was below its OPEC+ output target last month, after seaborne exports slumped to the lowest level since August 2023. Meanwhile, ports in the eastern Chinese province of Shandong, the top destination for Iranian crude, were urged to prevent US-sanctioned tankers from docking at their berths.
Stockpiles at Cushing, the delivery point for WTI, dropped by 3.1 million barrels, the API reported, according to a document seen by Bloomberg. That would take inventories to lowest since 2014 if confirmed by government figures.
Gulf MarketsThe ADX General is rising for the fourth day, climbing 0.3%, or 23.61 to 9,462.88 in Abu Dhabi in early trading. First Abu Dhabi Bank PJSC contributed the most to the index gain, increasing 1.6%. Commercial Bank International PJSC had the largest increase, rising 5.6%.
The DFM General Index opened 0.2% higher, climbing 11.52 to 5,225.45, as stocks gain for the third straight day in Dubai. Emaar Properties PJSC contributed the most to the index gain, increasing 0.8%. Amlak Finance PJSC had the largest increase, rising 1.1%.
The Tadawul All Share Index opened 0.2% higher, climbing 21.88 to 12,135.17, as stocks gain for the third straight day in Riyadh. Saudi Arabian Oil Co. contributed the most to the index gain, increasing 0.4%. United Electronics Co. had the largest increase, rising 3.7%.
Oil rose for a second day after an industry report pointed to another decline in US crude inventories.
Brent traded above $77 a barrel, after gaining 1% on Tuesday, while West Texas Intermediate was near $75. US stockpiles shrunk by 4 million barrels last week, the American Petroleum Institute reported, which would be a seventh straight draw and the longest streak of declines in three years if confirmed by government data later Wednesday.GoldGold rose 0.5% in yesterday’s session, hovering near $2,650. Gold finds itself navigating mixed market forces. On one hand, the prospect of slower monetary easing in 2025 poses a challenge. On the other, fears of a potential Trump return to the White House and the possibility of a renewed global trade war could boost gold as a safe-haven asset. Yesterday, the metal faced pressure from a selloff in U.S. Treasuries after stronger-than-expected U.S. business activity data reinforced expectations of a cautious Federal Reserve approach to rate cuts this year. However, China’s central bank reported adding to its gold reserves for the second consecutive month in December, offering a boost to bullion.

On the daily chart, gold trades between the 9-day and 50-day SMAs. The immediate resistance level stands at $2,669, while support is seen at $2,634.

Gold prices in the UAE today for the afternoon are as follows:

24 Carat – AED 320.50
22 Carat – AED 296.75
21 Carat – AED 287.25
18 Carat – AED 246.25

• Cryptocurrency

Bitcoin dropped over 5% to $96,200 after hitting the $100,000 mark in the previous session. The decline followed upbeat U.S. economic data, which suggested a strong economy and bolstered the case for fewer rate cuts from the Federal Reserve.

Recent data showed that U.S. services sector activity accelerated in December, and job openings increased in November.
This resilience in the American economy suggests fewer rate cuts from the Fed in 2025. Markets are now pricing in the probability of just one Fed rate cut in 2025, down from two in December, according to the CME FedWatch tool. The Fed had previously indicated two rate cuts for this year, half of what was earlier expected.

US’ 10-year treasury yield has risen to 4.68%, near multi-year highs, triggering a swift drop in crypto asset prices and a $504 million liquidation of long positions, marking this year’s first major leverage shakeout. At present, BTC’s support has moved back to $94,500 with immediate resistance at $98,600.

Last Updated on 17 hours by News Desk 1