Hello, Asia. Here’s what’s making news on the markets:
Welcome to Asia Morning Briefing, a daily summary of the top news stories during U.S. business hours and insight into market movements and analysis. For a detailed look at US markets, check out CoinDesk’s Crypto Daybook Americas.
Bitcoin was trading around $112,100 in early Asia, sliding 0.5% on the hour and 1.8% on 24 hours, but still up 3.4% on the week. The price action suggests consolidation rather than capitulation as traders await the Federal Reserve’s rate decision – although a cut is almost certain according to market forecasts – later this week.
“BTC is consolidating rather than running, while gold fell again, adding weight to the thesis that capital rotation is underway from metals to digital stores of value,” Enflux, a Singapore-based market maker, said in a note to CoinDesk.
Enflux wrote that gold’s pullback has reinforced the narrative that liquidity is shifting toward Bitcoin as investors seek higher beta hedges in a slowing macroeconomic environment.
Gracie Lin, CEO of OKX Singapore, added that trading desks are quietly accumulating rather than speculating.
“Traders are moving to USD stablecoins and concentrating liquidity into large 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 U.S.-China trade talks and futures markets continue to price in a rate cut.
As traders use less leverage and keep capital parked in stables, Bitcoin appears to be preparing for a bigger move.
Lin said these dynamics suggest the market is “preparing for the next phase of potential breakout” as macroeconomic conditions become more accommodative. .
Enflux said the $110,000 level has become key near-term support, marking an area that buyers have steadily stepped into over the past week.
Market movement:
BTC: Bitcoin slipped 1.8% over the past 24 hours to around $112,100, extending a slight pullback from last week’s highs as traders stayed on the sidelines ahead of the Federal Reserve’s rate decision.
ETFs: Ether fell 3.8% to around $3,970, underperforming Bitcoin as traders shifted capital to BTC and stablecoins ahead of this week’s macroeconomic catalysts.
Gold: Gold fell to a three-week low near $3,950 in Asian trading even as LBMA delegates in Kyoto forecast prices would rise to $4,980 within a year as easing U.S.-China tensions and profit-taking were offset by expectations of a Fed rate cut.
Nikkei 225: Japan’s Nikkei 225 index rose more than 1% to a record above 51,000, leading mixed Asian trading as investors awaited the Fed’s expected second 25 basis point rate cut, with traders betting that a dovish tone from Chairman Jerome Powell could extend the rally.
Elsewhere in Crypto:
- Tether attests to full physical support for its gold-based token as market value exceeds $2 billion (The Block)
- The curious case of crypto cash redemptions takes a unique turn (Bloomberg)
- Funding for Ethena-Backed Terminal DEX Reaches $280 Million in Pre-Launch Deposits (CoinDesk)
