Bitcoin and Gold Rebound as Yen Loses Ground, but Oil Prices Keep Inflation Fears Alive

Bitcoin and gold recovered from their early declines on Friday as the Japanese yen reversed course and Asian equities bounced back. However, crude oil trading near $100 continued to raise concerns about persistent inflation and its potential impact on financial markets.

Bitcoin rose toward $82,000 after dipping below $81,000 overnight, according to CoinDesk data. The leading cryptocurrency by market capitalization was testing its 50-day simple moving average, a key indicator traders use to evaluate short-term momentum.

Ether, XRP, Solana and Dogecoin also posted similar recoveries during the Asian session.

Crypto Futures Liquidations Total $435 Million

The cryptocurrency derivatives market saw roughly $435 million worth of futures positions liquidated over 24 hours. Long positions accounted for $385 million, suggesting bullish traders had taken on substantial leverage before prices declined.

Gold also regained ground, climbing to around $4,020 an ounce after falling to an intraday low of $3,986. The metal had last traded at that lower level on July 29.

Regional stock markets followed suit. Japan’s Nikkei and South Korea’s Kospi rebounded from their session lows, while Nasdaq futures rose 0.17% to 29,190 after previously falling to 29,022.

Yen Reverses Its Advance After Inflation Report

The initial risk-averse mood was reinforced when the yen rose to 156.07 per U.S. dollar, its strongest level since September 18.

Japanese inflation figures came in hotter than expected, strengthening market expectations that the Bank of Japan could raise interest rates again. The yen also attracted support from safe-haven demand amid concerns over volatility associated with artificial intelligence.

Currency movements matter beyond Japan because the yen has long served as a funding currency for carry trades, in which investors borrow cheaply to purchase higher-yielding assets.

The rally proved short-lived, however, as the yen weakened toward 157 per dollar. Its retreat coincided with a broader recovery in Asian equities and other risk-sensitive markets.

Oil Prices Remain a Threat to Market Stability

Oil continues to be a major concern for investors. West Texas Intermediate futures held near $100 even after U.S. President Donald Trump invoked a Cold War-era law intended to encourage higher fuel production.

The policy move has not significantly eased pressure on crude prices.

Sustained high energy costs could increase inflation worldwide, potentially complicating central banks’ interest-rate decisions and putting additional pressure on risk assets such as cryptocurrencies.

Bitcoin ETF Withdrawals Weigh on Recovery

Bitcoin’s ability to sustain its rebound may also depend on whether institutional demand returns. Consistent inflows into U.S.-listed spot Bitcoin exchange-traded funds could provide additional support for prices.

Preliminary SoSoValue data showed that these funds experienced $381 million in net outflows on Thursday.

With ETF investment flows remaining weak and crude prices elevated, the latest recovery in Bitcoin and gold could struggle to develop into a sustained rally without a broader improvement in market sentiment.