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 Diary Americas.
Bitcoin held its ground as Hong Kong began its trading day, trading above $91,000 after the Federal Reserve cut interest rates by 25 basis points and acknowledged increased uncertainty over the US outlook.
The calm reflects more than central bank actions. In its latest report, CryptoQuant writes that currency inflows have fallen sharply from November highs and whales have reduced deposits, reducing short-term selling pressure and allowing the market to settle into a narrow range.
CryptoQuant also highlights that whales realized losses of more than $600 million when BTC first broke below $100,000, followed by an estimated $3.2 billion in cumulative losses. Short-term holders have been selling at negative margins since mid-November, a pattern that typically only shows up after sentiment has already capitulated. Historically, this combination signals the point at which selling pressure begins to exhaust itself.
That backdrop has kept Bitcoin stuck at around $92,000 despite several macro catalysts.
QCP says the current stability should not be confused with conviction. Describing a market still in a holding pattern, the desk notes that ETF inflows have improved only modestly and derivatives positioning remains cautious.
Attention now shifts to Tokyo, where prediction markets are largely expecting a 25 basis point hike at the December 19 Bank of Japan meeting. QCP argues that the next big driver sits in the country, where long JGB yields are pushing multi-decade highs and politicians have signaled discomfort with the pace of the move.
The market is stable today, although the way forward now depends on how Japan’s decision reshapes global risk appetite.
Market movement
BTC: Bitcoin spent the session moving quietly between $91,000 and $92,000, showing little reaction to the Fed tapering as onchain flows kept volatility contained.
ETH: Ether traced the same muted note, holding close to $3,270 with no clear catalyst to break out of its recent range.
Gold: Gold rose after the Fed’s rate cut despite lingering uncertainty over the course of next year’s policy, while silver hit a record high as strong industrial demand and tight supply continued to lift prices.
Nikkei 225: Most Asia-Pacific markets rallied after the Fed’s third rate cut this year, although Japan’s Nikkei 225 opened strongly before falling 0.11 percent.
Elsewhere in Crypto
- Official Trump Crypto Game Revealed With $1 Million in Solana Meme Coin Rewards (Decrypt)
- Consumer groups join unions trying to derail US crypto market structure bill (CoinDesk)
