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Asian stocks headed toward weekly losses Friday as rising US Treasury yields pressured risk assets, while Bitcoin and gold gained as investors moved toward stores of value. Bitcoin traded near $74,300 after reaching $75,500, while gold held around $4,513 an ounce.
Japan’s Nikkei opened 0.8% lower, extending its weekly decline to 4.4% before recovering part of the loss. South Korean and Taiwanese shares rose slightly Friday but remained lower for the week. Meanwhile, the broader MSCI Asia-Pacific index outside Japan gained only 0.5%. Earlier market stress also triggered a Kospi sidecar halt during the week.
US Treasury yields resumed their climb after briefly stabilizing. The 30-year yield reached 5.25%, while the benchmark 10-year Treasury yield rose to 4.71%.
The moves renewed concerns over US borrowing and fiscal conditions. The federal deficit remains above 6% of gross domestic product, while annual interest payments could exceed $1.2 trillion.
Treasury Secretary Scott Bessent said the government could expand bond repurchases and pursue fiscal consolidation. Still, analysts questioned whether spending reductions could materially narrow the deficit.
Deutsche Bank strategist Steven Zeng said markets have historically resisted interventions when debt and deficit fundamentals remain unfavorable. He added that further intervention could become increasingly costly.
Oil also added pressure. Brent crude reached a one-month high of $94.71 a barrel before easing to $93.12 following stronger US sanction threats against Iran.
Bitcoin moved in the opposite direction from equities. The cryptocurrency traded near $74,300 Friday after touching $75,500 during the session. Gold also strengthened, holding near $4,513 an ounce after gaining 3.1% during the week. Treasury buyback plans added momentum to the debasement narrative surrounding scarce assets.
The rally has brought JPMorgan’s $5,000 gold target closer to current prices. At the same time, VanEck strategists have pointed to Bitcoin’s recent strength as evidence supporting its weaker-dollar hedge narrative.
The dollar index fell nearly 0.9% for the week and hovered near a three-month low. This decline coincided with gains across Bitcoin and gold. Can Bitcoin and gold continue acting as hedges if renewed Wall Street volatility causes investors to sell assets across multiple markets?
Also Read: Bitcoin Tops $75,000 as Ethereum, XRP Extend Crypto Rally
Crypto analyst Murphy linked Bitcoin’s rise from roughly $64,000 to $75,000 to a concentrated holder base around lower price levels. According to the analysis, more than 2 million BTC accumulated between $62,000 and $64,000. Those holdings created a large cost-basis zone beneath the market.
During Bitcoin’s three-day surge, holdings near $63,000 showed little movement. This behavior indicated limited selling from investors who accumulated around the support zone.
Selling also remained restrained between $68,000 and $74,000. As a result, Bitcoin advanced without heavy distribution from holders who bought at higher prices. However, Murphy observed that some holdings shifted toward selling after the rally. This change could increase short-term supply and lead to sideways trading or a pullback.
Wall Street also remains an important external factor. The Dow fell 703 points Thursday, while Walmart dropped 9% following soft US sales. The S&P 500 had lost 1.9% for the week through Thursday, while the NASDAQ fell 2.5%. Futures pointed modestly higher Friday.
NVIDIA’s results next week will provide another test for the AI trade and broader risk appetite, which has moved alongside Bitcoin during recent market swings.
Asian stocks weakened as Treasury yields and oil prices increased, while Bitcoin and gold moved higher. Bitcoin’s rally also benefited from strong holder support near $62,000 - $64,000, although new selling could test that structure as Wall Street volatility and NVIDIA earnings approach.
