Good morning, Asia. Here’s what’s making news in the markets:
Welcome to the Asia Morning Briefing, a daily overview of top stories in US hours and an overview of market movements and analysis. For a detailed overview of US markets, see CoinDesk’s Crypto Daybook Americas.
Bitcoin was trading around $112,100 in early Asian hours, down 0.5% on the hour and 1.8% over 24 hours, but still up 3.4% for the week. The price action suggests consolidation rather than capitulation as traders await the Federal Reserve’s interest rate decision – although a cut is almost a sure thing according to prediction markets – later this week.
“BTC is consolidating rather than chasing while gold slipped again, adding weight to the thesis that capital rotation is underway from metals to digital stores of value,” Enflux, a market maker based in Singapore, said in a note to CoinDesk.
Enflux wrote that Gold’s retreat has reinforced the narrative that liquidity is shifting towards Bitcoin as investors look for higher beta hedges in a softer macro environment.
OKX Singapore CEO Gracie Lin added that trading desks are quietly accumulating rather than speculating.
“Traders are rotating into USD stablecoins and concentrating liquidity in deep order books, creating what some might call a dry powder economy,” Lin told CoinDesk.
Lin added that positioning has become more deliberate as sentiment improves following progress in US-China trade talks and futures markets continue to price in a rate cut.
With traders using less leverage and keeping capital parked in stables, Bitcoin looks set for a bigger move.
Lin said these dynamics suggest the market is “preparing for the next potential breakout phase” as macro conditions become more accommodative. .
Enflux said the $110,000 level has emerged as key near-term support, marking a zone where buyers have consistently entered over the past week.
Market movement:
BTC: Bitcoin fell 1.8% over the past 24 hours to around $112,100, extending a mild pullback from last week’s highs as traders remained on the sidelines ahead of the Federal Reserve’s interest rate decision.
ETH: Ether fell 3.8% to around $3,970, underperforming Bitcoin as traders rotated capital into BTC and stablecoins ahead of this week’s macro catalysts.
Gold: Gold fell to a three-week low near $3,950 in Asian trade, even as LBMA delegates in Kyoto predicted prices will rise to $4,980 within a year, with U.S.-China tensions and profit-taking offset by expectations of a Fed rate cut.
Nikkei 225: Japan’s Nikkei 225 rose more than 1% to a record above 51,000, leading to mixed Asian trade as investors awaited the Fed’s expected second 25 basis point rate cut, with traders betting a dovish tone from Chairman Jerome Powell could extend the rally.
Elsewhere in Crypto:
- Tether Testifies to Full Physical Support for Its Gold-Based Token as Market Cap Exceeds $2 Billion (The Block)
- The Curious Case of Crypto Treasury Acquisition Takes a Unique Twist (Bloomberg)
- Athena-Backed DEX Terminal Finance Reaches $280 Million in Pre-Launch Deposits (CoinDesk)
