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 traded around $112,100 in early Asia, falling 0.5% hourly and 1.8% over 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 based on market predictions) later this week.
“BTC is consolidating rather than chasing, while gold fell again, adding weight to the thesis that a capital rotation from metals to digital stores of value is occurring,” Enflux, a Singapore-based market maker, said in a note to CoinDesk.
Enflux wrote that gold’s pullback has strengthened the narrative that liquidity is shifting toward Bitcoin as investors seek higher beta hedges in a weakening macroeconomic environment.
Gracie Lin, CEO of OKX Singapore, added that trading desks are quietly accumulating rather than speculating.
“Traders are pivoting to dollar stablecoins and concentrating liquidity into deep 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.
With traders using less leverage and keeping capital parked in stables, Bitcoin appears to be gearing up for a bigger move.
Lin said this dynamic suggests the market is “preparing for the next potential breakout phase” as macroeconomic conditions become more accommodative. .
Enflux said the $110,000 level has emerged as key short-term support, marking an area where buyers have consistently intervened over the past week.
Market movement:
BTC: Bitcoin fell 1.8% in the past 24 hours to around $112,100, extending a slight pullback from last week’s highs as traders remained on the sidelines ahead of the Federal Reserve’s rate decision.
ETH: Ether fell 3.8% to around $3,970, underperforming Bitcoin, as traders rotated capital into 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, with easing U.S.-China tensions and profit-taking offset by expectations of a Federal Reserve rate cut.
Nikkei 225: Japan’s Nikkei 225 rose more than 1% to a record above 51,000, leading mixed trading in Asia as investors awaited the Federal Reserve’s expected second 25 basis point rate cut, and traders bet that a dovish tone from Chairman Jerome Powell could extend the rally.
Elsewhere in Crypto:
- Tether attests to full physical backing for its gold-based token as market value surpasses $2 billion (The Block)
- The Curious Case of Crypto Treasury Buybacks Takes a Unique Twist (Bloomberg)
- Ethena-Backed DEX Terminal Funding Reaches $280M in Pre-Launch Deposits (CoinDesk)
