Bitcoin and Gold Recover as Yen Pulls Back, While Oil Near $100 Keeps Inflation Risks Elevated

Bitcoin and gold trimmed their earlier losses during Friday’s Asian session as the Japanese yen surrendered its gains and regional stock markets bounced back. Despite the recovery, oil prices near $100 continued to raise concerns about inflation and the outlook for risk-sensitive investments.

Bitcoin climbed toward $82,000 after dropping below $81,000 overnight, according to CoinDesk data. The largest cryptocurrency by market capitalization was testing its 50-day simple moving average, a technical level commonly used to gauge near-term momentum.

Ether, XRP, Solana and Dogecoin also rebounded as the broader crypto market recovered.

Crypto Liquidations Reach $435 Million

Cryptocurrency futures markets recorded approximately $435 million in liquidations over the previous 24 hours. Long positions accounted for $385 million, indicating that bullish traders held a substantial amount of leveraged exposure.

Gold also bounced back, rising to around $4,020 per ounce after touching an early low of $3,986, a level last seen on July 29.

Asian equity markets also recovered from their session lows. Japan’s Nikkei and South Korea’s Kospi moved higher, while Nasdaq futures gained 0.17% to 29,190 after falling to 29,022 earlier in the session.

Yen Retreats After Briefly Strengthening

The initial wave of risk aversion intensified when the yen climbed to 156.07 per U.S. dollar, marking its strongest level since September 18.

Stronger-than-expected Japanese inflation data boosted expectations of further interest rate hikes by the Bank of Japan. Demand for safe-haven assets amid concerns over artificial intelligence-related market volatility also supported the currency.

The yen remains important to global markets because investors often borrow it to finance carry trades, using low-cost funding to invest in higher-yielding assets.

However, the currency quickly reversed direction and weakened toward 157 per dollar. Its pullback coincided with a recovery in Asian equities and other financial markets.

Oil Prices Keep Inflation Concerns in Focus

Crude oil remains a major source of uncertainty. West Texas Intermediate futures traded near $100 despite U.S. President Donald Trump invoking a Cold War-era law designed to increase fuel production.

The move has not yet led to a substantial decline in oil prices.

If energy costs remain elevated, inflationary pressures could intensify across global economies. That could complicate central banks’ interest rate decisions and weigh on assets that tend to be sensitive to changes in economic conditions.

Bitcoin ETF Outflows Challenge Market Recovery

Bitcoin’s rebound also faces pressure from a lack of consistent institutional demand. Sustained inflows into U.S.-listed spot Bitcoin exchange-traded funds could help strengthen the cryptocurrency’s recovery.

Preliminary data from SoSoValue showed that the funds recorded $381 million in net outflows on Thursday.

With investment flows weakening and oil prices remaining high, Bitcoin may struggle to extend its gains unless broader market sentiment improves.