Good morning Asia. This is what is making news in the markets:
Welcome to Asia Morning Briefing, a daily summary of top news during US time and an overview of market movements and analysis. For a detailed overview of the US markets, see CoinDesk’s Crypto Daybook Americas.
Bitcoin’s recovery above $114,000 this week reflects a measured reset rather than a breakout. Data from Glassnode shows that since mid-October, around 62,000 BTC have left long-term dormant wallets, roughly 0.4% of the total illiquid base.
Charging…
The change marks the first notable decline in illiquid supply this cycle, indicating that some long-held coins are returning to more liquid hands.
The whales, however, have been quietly absorbing that flow, Glassnode data shows.
Portfolios with large balances have increased their positions in the last 30 days and have not sold significantly since October 15. In contrast, smaller holders of between 0.1 and 10 BTC, roughly $10,000 to $1 million, have been consistent sellers since late 2024. The result is a redistribution phase: weaker hands cut risk, larger holders accumulate.
In derivatives, leverage has remained balanced. Hyperliquid ranking data shows around $4.1 billion in open interest split almost equally between long and short positions, with a slight tilt towards the latter.
Coinglass tracked around $413 million in liquidations over the last 24 hours, of which around $337 million were short positions. This is a moderate color, not a full short squeeze, enough to clear overleveraged bets but not to reset positioning or force panic buying.
Taken together, these dynamics may help explain the quiet recovery in bitcoin’s price. BTC’s move from $110,000 to $114,900 was driven by a combination of light short covering and steady spot absorption rather than momentum chasing. Glassnode data shows that the market is now in a neutral zone: illiquid supply is declining, whales are holding, and leverage is balanced.
For now, Bitcoin is likely to hover between $113,000 and $116,000 until the next catalyst emerges. Now that a dovish Fed is expected, the question is: what will it be?
Market movement:
BTC: Bitcoin’s rise from $110,000 to about $114,900 reflects a modest rally driven by whale accumulation and mild short covering, not the kind of widespread demand that signals a new bullish trend.
ETH: Ether rose to $4,186, up about 6% in 24 hours, outperforming Bitcoin as traders rotated into higher beta assets following BTC’s stabilization, although on-chain and derivatives data suggest the move remains largely momentum-driven rather than backed by strong new inflows.
Gold: JPMorgan expects gold to rise to $5,055 an ounce by the end of 2026 and $6,000 in 2028, calling the recent pullback a healthy consolidation within a broader bullish trend driven by Federal Reserve rate cuts, fears of stagflation and growing demand from central banks and investors diversifying away from the dollar.
Nikkei 225: Japan’s Nikkei 225 surpassed 50,000 for the first time as optimism over U.S.-China trade talks and hopes of an expansion in domestic demand under Prime Minister Takaichi lifted sentiment.
Elsewhere in Crypto:
- Betting scandals are rocking sports. Will prediction markets help or hurt? (Decipher)
- Could China ‘militarize’ cryptocurrencies to defeat financial sanctions? (SCMP)
- Tether Seeks New Investments to Power USAT Stablecoin to 100 Million Americans in December Launch (CoinDesk)
