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 fell below $90,000 during Hong Kong morning hours as Japanese bond yields rose to new 17-year highs, triggering a risk-off sell-off in regional markets.
Japan’s two-year government bond yield briefly touched 1.01 percent, the highest since 2008, as traders bet the Bank of Japan’s long era of near-zero rates is coming to an end. The sell-off followed comments from BOJ Governor Kazuo Ueda, who said the board will assess whether a rate hike is appropriate at this month’s meeting.
Traders pushed the yen higher in the morning session in Tokyo, which will eventually accelerate a reduction in the yen-financed carry trades that have supported risk assets all year.
Crypto markets, which are deeply sensitive to short-term liquidity conditions in Asia, were hardest hit by the move, with BTC falling below $87,500 and Ether continuing lower.
Prediction markets reflect uncertainty over Japan’s political outlook, with Polymarket traders now pricing the chances of a rate hike in December at around 50%, an increase of seven percentage points.
Traders’ attention this week will be on how the yen is moving and what the BOJ is communicating. Any further tightening signals could trigger another round of volatility in regional markets and cryptocurrencies.
Market movement
BTC: Bitcoin’s fall below $87,500 triggered a wave of forced selling, with more than $150 million in BTC long positions liquidated as rising Japanese yields pushed traders to unwind their leveraged positions.
ETH: Ether fell towards $2,850, with around $140 million in long positions liquidated as Japan’s changing rate outlook tightened liquidity during early Asian sessions.
Gold: Goldman Sachs says nearly 70% of institutional investors expect gold to continue rising, with the largest group forecasting prices above $5,000 by 2026.
Nikkei 225: Asia-Pacific markets fell on Monday as traders awaited manufacturing data from China and priced in an 87% chance of a Fed rate cut, with Japan’s Nikkei 225 falling 1.3%.
Elsewhere in Crypto
- Bitcoin ETFs Now BlackRock’s Top Revenue Source, Exec Says (CoinDesk)
- Ethena-Incubated DEX Terminal Finance Abandons Launch After Converge Chain Fails to Materialize (The Block)
