Copper prices hit a fresh record on Wednesday after a sharp surge in orders from South Korea and Taiwan triggered the largest wave of warehouse withdrawals from the London Metal Exchange (LME) since 2013.

Copper rose an additional 2.4% at the start of Wednesday’s session on the LME, surpassing $11,400 per metric ton and breaking the previous record set just two days earlier.

Prices have now climbed roughly 30% since the start of the year, with most of the gains concentrated in the second half, driven by supply disruptions in major producing countries and speculation over potential US import tariffs.

This year’s rally has been fueled in part by threats from the Trump Administration to impose tariffs on the metal — a key input for electrification and power-grid expansion. Although Trump has temporarily backed away from implementing tariffs, traders have been stockpiling copper inside the United States, pushing Comex prices higher and tightening supplies elsewhere.

Demand indicators have also turned more optimistic in recent weeks, supported by better-than-expected economic performance despite trade-related disruptions stemming from tariff policy.

Copper — used across industry, electronics, electrification, and construction — is widely viewed as a barometer of economic health.

On the supply side, several accidents at mines in Chile and Indonesia earlier this year constrained global production and tightened physical availability.

More recently, traders have built up positions in anticipation of a deeper supply deficit next year, according to analysts and company executives who spoke at a Fastmarkets webinar last week.

Participants noted that macroeconomic conditions will be the dominant force shaping copper markets and also the biggest source of uncertainty for demand and pricing in 2026.

Scott Crooks, senior analyst at Chilean state-owned giant CODELCO, said: “The macroeconomic picture is the most important factor, because ultimately it drives the demand numbers.” He added: “It’s the tweets, the policies coming from various countries as they try to reposition themselves in this new world we’re living in. I think that’s what will really make the difference.”

Bitcoin climbed back above $93,000 on Wednesday, recovering sharply from the steep losses seen on Monday when it briefly fell near $84,000, as investors drew confidence from positive regulatory signals in the US and rising expectations of near-term interest-rate cuts.

The world’s largest cryptocurrency was last up 7.2% at $93,101.6 as of 02:19 a.m. ET (07:19 GMT).

This rebound follows a difficult start to the week, during which Bitcoin briefly dropped below $85,000 — a decline of roughly 33% from its record highs above $126,000 reached in early October.

Signals from the SEC and a shift from Vanguard support the recovery

Reports attribute much of Bitcoin’s renewed strength to comments from SEC Chair Paul Atkins, who reiterated that the agency plans to introduce a new regulatory framework featuring an “innovation exemption” aimed at accommodating digital-asset firms.

The exemption is expected to offer greater clarity and flexibility around the issuance, custody, and trading of crypto assets as the SEC updates its rules.

At the same time, institutional adoption received a fresh boost after Vanguard — the world’s second-largest asset manager — reversed its earlier stance and announced it will allow trading of crypto-linked ETFs and mutual funds on its brokerage platform starting this week.

The move broadens access to regulated investment tools for millions of investors and underscores the growing acceptance of crypto-related products within major financial institutions.

Investors also priced in stronger odds of an anticipated interest-rate cut by the Federal Reserve next week, a development that typically enhances the appeal of dollar-denominated risk assets such as Bitcoin.

Still, the sharp swings in recent days have left traders cautious, with concerns that the latest rebound may prove short-lived.

Crypto prices today: broad market rebound… and Ethereum jumps 10%

Most major altcoins rallied strongly on Wednesday amid broad-based buying.

Ethereum, the world’s second-largest cryptocurrency, rose 10% to $3,062.92.

XRP, the third-largest token, climbed 9.3% to $2.20.

Oil prices rose more than 1% on Wednesday after Russia said talks with US officials in Moscow had failed to produce a settlement on a potential Ukraine peace deal — an agreement that could have eased sanctions on the Russian oil sector.

Brent crude gained 78 cents, or 1.3%, to $63.23 at 10:10 GMT, while US West Texas Intermediate rose 85 cents, or 1.5%, to $59.49. Both benchmarks had fallen more than 1% in the previous session.

Goldman Sachs analysts wrote in a note: “Neither physical nor forward oil markets appear to be pricing any meaningful probability of a near-term peace deal and the removal of sanctions on Russian oil.”

Russia and the United States failed to reach a settlement after a five-hour meeting between President Vladimir Putin and senior envoys of President Donald Trump, according to a statement from the Russian government on Wednesday.

Oil traders are closely watching the outcome of these talks, as any agreement could potentially lift sanctions on Russian companies — including major producers Rosneft and Lukoil — and bring restricted supply back onto global markets.

Putin said Tuesday that European powers were obstructing US attempts to end the war by proposing terms they “know perfectly well are completely unacceptable” to Moscow.

Meanwhile, recent Ukrainian attacks on export infrastructure along Russia’s Black Sea coast have underscored the geopolitical risks surrounding the conflict. Ukraine also targeted two sanctioned tankers transporting Russian oil in the Black Sea last week.

Analysts said that Putin’s comments on Tuesday — that Russia would take action against tankers belonging to countries assisting Ukraine — add an additional layer of geopolitical risk.

Gains were capped, however, by a sharp build in US inventories.

The American Petroleum Institute reported Tuesday that US crude and fuel inventories rose last week, according to market sources citing API data.

Crude stocks increased by 2.48 million barrels in the week ending November 28, gasoline inventories rose by 3.14 million barrels, and distillate stocks climbed by 2.88 million barrels, the sources said.

The US Energy Information Administration will release the government’s official inventory data later on Wednesday.

The dollar fell for a ninth consecutive session on Wednesday as traders strengthened their bets on a Federal Reserve rate cut, driven by softer US economic data and growing expectations of a more dovish stance from the central bank.

Fed Governor Christopher Waller said last week that the labor market had weakened enough to justify another quarter-point cut in December, while Kevin Hassett — a senior White House economic adviser — has emerged as the leading contender to become the next Fed Chair.

President Donald Trump said he will announce his choice for Fed Chair in early 2026.

Christina Hooper, chief market strategist at Man Group, noted: “Such an early announcement would effectively create a ‘shadow Fed Chair,’ given that Jerome Powell’s term doesn’t end until May.”

She added: “This could complicate the Fed’s communication on monetary policy and create confusion in markets at a time when clarity is most needed.”

According to CME’s FedWatch tool, markets have now priced in an 87% chance of a December rate cut, up sharply from just 30% on November 19.

With December largely priced in, investor focus is shifting toward the Fed’s path beyond the upcoming meeting, with markets expecting around 88 basis points of easing by December 2026.

The US Dollar Index slipped 0.15% to 99.10, moving toward an annual decline of nearly 9%.

Euro rises as attention turns to Ukraine peace talks

The euro edged up 0.11% to $1.1639, with investors monitoring progress in Ukraine peace negotiations — developments that could strengthen Europe’s energy security and lower costs, potentially supporting the single currency.

However, the Kremlin said Wednesday that Russia and the United States have not reached any settlement on a potential peace agreement, following a five-hour meeting between President Vladimir Putin and senior envoys of President Trump.

Analysts believe the euro could see further gains if a ceasefire or comprehensive peace deal emerges, particularly if elevated defense spending continues to support economic activity in the coming years.

Eurozone inflation data came in slightly above expectations on Tuesday, but market pricing for the ECB remained unchanged, with expectations that the central bank will hold rates steady until early 2027.

Yen hovers near intervention zone

The dollar slipped 0.13% to ¥155.69 on Wednesday after touching ¥155.89 the previous day, as Bank of Japan Governor Kazuo Ueda delivered his strongest indication yet that a rate hike may be considered later this month.

Lee Hardman, senior currency economist at MUFG, said: “The initial market reaction raises doubts about whether an early rate hike by the Bank of Japan will be enough on its own to reverse the yen’s persistent weakness since Sanae Takaichi became LDP leader in early October.”

Takaichi is expected to favor expansionary fiscal policy and lower borrowing costs.

Analysts also noted that Washington is likely to push back against the yen sliding to ¥160 or beyond, implying intervention becomes increasingly probable at that level. US Treasury Secretary Scott Bessent has repeatedly blamed Japan’s ultra-loose policies for keeping the yen undervalued.

Australian dollar climbs… and Bitcoin rebounds

In Asia, the Australian dollar rose to its highest level since October 30 at $0.6584 after GDP data came in slightly below forecasts. The Reserve Bank of Australia is widely expected to keep rates unchanged next week.

A major move came from India, where the rupee broke beyond 90 per US dollar amid pressure from weak trade flows and portfolio outflows, despite strong economic growth in the world’s fifth-largest economy.

A sharp rebound in Bitcoin helped revive risk appetite. The world’s largest cryptocurrency rose 2% on Wednesday to a two-week high of $93,633.70, after jumping 6% in the previous session.

Bitcoin had slumped earlier in December after a difficult November, during which it lost more than $18,000 — its biggest dollar decline since May 2021, when several major cryptocurrencies crashed.