Good Morning, Asia. Here are the latest updates in the markets:
Welcome to the Asia Morning Briefing, your daily recap of the key stories during U.S. hours, including market movements and analysis. For a comprehensive view of U.S. markets, refer to CoinDesk’s Crypto Daybook Americas.
Bitcoin is trading around $112,100 in the early hours in Asia, dipping 0.5% over the hour and 1.8% over the past 24 hours, but showing a 3.4% increase for the week. This price behavior indicates a phase of consolidation rather than capitulation as traders anticipate the Federal Reserve’s rate decision – even though a cut is nearly assured according to prediction markets – later this week.
“BTC is experiencing consolidation instead of chasing price, while gold has decreased again, reinforcing the idea that capital is shifting from metals to digital assets,” noted Enflux, a market maker based in Singapore, in a message to CoinDesk.
Enflux pointed out that gold’s decline supports the trend of liquidity moving toward Bitcoin as investors seek higher-beta hedges in a slowing macro environment.
Gracie Lin, CEO of OKX Singapore, remarked that trading desks are accumulating quietly rather than engaging in speculation.
“Traders are shifting to USD stablecoins and concentrating liquidity in deep order books, creating what some might refer to as a dry powder economy,” Lin told CoinDesk.
Lin further mentioned that trader positioning has become more calculated as sentiment improves following advancements in U.S.-China trade dialogues and futures markets price in a rate cut.
With traders using less leverage and keeping capital in stables, Bitcoin seems poised for a larger movement.
Lin indicated that these trends suggest the market is “preparing for the next potential breakout phase” as macro conditions become more favorable.
Enflux highlighted that the $110,000 mark has emerged as crucial short-term support, indicating a zone where buyers have consistently shown up over the last week.
Market Movement:
BTC: Bitcoin has declined by 1.8% over the last 24 hours to approximately $112,100, experiencing a slight retreat from last week’s peaks as traders remain cautious ahead of the Federal Reserve’s rate decision.
ETH: Ether dropped 3.8% to about $3,970, underperforming Bitcoin as traders rotated capital into BTC and stablecoins ahead of this week’s macroeconomic events.
Gold: Gold fell to a three-week low near $3,950 during Asian trading, despite LBMA delegates in Kyoto predicting prices could rise to $4,980 within a year, with easing U.S.-China tensions and profit-taking countered by expectations of a Fed rate cut.
Nikkei 225: Japan’s Nikkei 225 climbed by over 1% to a record high above 51,000, leading mixed trading across Asia as investors awaited the Fed’s anticipated second 25-basis-point rate cut, with traders betting that a dovish stance from Chair Jerome Powell could sustain the rally.
