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 trades above $110,000 and Ether is at $3,880 as Hong Kong begins its business week.
Both major digital assets have fallen significantly in the last 30 days, with BTC in the red by 10% and ETH by 14% as traders continue to consolidate positions.
In a note, market maker FlowDesk said its clients have mostly paused adding new risks after last week’s Federal Reserve meeting, with flows dominated by short-term trading strategies and portfolio realignment.
Still, they wrote in the note, traders showed net buying in BTC, HYPE and SYRUP, tokens supported by cash flow or buyback narratives, even as Solana-linked assets limped along with an increase in Bitcoin dominance to around 60%. FlowDesk wrote that many traders now appear to be underexposed if the market rebounds, suggesting cleaner positioning after earlier deleveraging.
In the derivatives market, however, fear remains the prevailing mood.
Roughly $155 million in crypto derivatives were liquidated over the past 24 hours, according to CoinGlass data, with $97 million in long positions and $58 million in shorts wiped out. The pattern suggests a moderate flush of surrendered longs rather than broad panic selling as funding rates and borrowing costs continue to normalize.
FlowDesk observed increased put bias and continued caution despite calmer volatility, while call selling and put buying dominated both BTC and ETH options.
Inexpensive risk reversals could appeal if spot markets stabilize, FlowDesk wrote, with volatility likely to decrease at the end of the year.
On the credit side, lending demand for altcoins remains strong as traders leverage negative financing and hedge locked tokens, while benchmark lending rates for DeFi protocols on Ethereum have fallen to 5.3% from 5.6%.
All in all, crypto markets are beginning the week in a wait-and-see mode, looking for a catalyst that has yet to materialize.
Market movement
BTC: Bitcoin held steady around $110,300 on Monday, showing signs of stabilization after a week of profit-taking and modest deleveraging across derivatives markets.
ETH: Ether traded near $3,900 and edged higher as traders cautiously rebuilt exposure following last week’s market-wide pullback.
Gold: Gold closed at around $4,003 per ounce and fell 0.5% on Friday after rebounding from a two-week low earlier in the week. Despite hawkish comments from the US Federal Reserve and a stronger dollar discounting December rate cut odds, the metal still rose 3.7% in October for its third straight monthly gain as geopolitical tensions and US fiscal uncertainty kept demand in the garden intact.
Nikkei 225: Japan’s main stock index continues to push above 52,000 as investors are optimistic about US-China trade developments and solid earnings from tech giants.
Elsewhere in Crypto
- Canaan’s Japan deal marks the first state-linked bitcoin mining project in the country (The Block)
- November May Be the New October for US Crypto ETFs After Shutdown Delays SEC Rulings (CoinDesk)
- Court rejects Crypto Bank Custodia’s bid to release main account from unwilling Fed (decrypt)
