Good Morning, Asia. Here’s the latest in market news:
Welcome to Asia Morning Briefing, your daily digest of key stories during U.S. hours along with insights on market movements and analysis. For a comprehensive look at U.S. markets, refer to CoinDesk’s Crypto Daybook Americas.
Bitcoin maintained its position as Hong Kong started its trading day, hovering above $91,000 after the Federal Reserve lowered rates by 25 basis points, acknowledging heightened uncertainty regarding the U.S. economic outlook.
This steadiness is attributed to more than just central bank actions. According to CryptoQuant’s latest report, exchange inflows have significantly decreased from November’s peak, and whales have reduced their deposits, diminishing near-term selling pressure and enabling the market to stabilize within a narrow range.
CryptoQuant further points out that whales recognized losses exceeding $600 million when BTC first dipped below $100,000, adding up to approximately $3.2 billion in total losses. Short-term holders have been trading at a loss since mid-November, a trend typically seen only after market sentiment has already shifted. Historically, this scenario indicates the point at which selling pressure starts to wane.
This backdrop has kept Bitcoin around $92,000 despite various macroeconomic triggers.
QCP states that the current stability should not be mistaken for strong conviction. The desk indicates that the market is still in a holding phase, with ETF inflows only slightly improved and a cautious approach to derivatives positioning.
Focus is now shifting to Tokyo, where prediction markets predominantly anticipate a 25-basis-point hike at the Bank of Japan meeting on December 19. QCP argues that the next critical factor lies in Japan, where long-end JGB yields are nearing multi-decade highs, and policymakers have expressed concern over the rate of change.
The market appears steady today, but the future trajectory depends on how Japan’s decisions influence global risk appetite.
Market Movement
BTC: Bitcoin traded within a narrow band of $91,000 to $92,000, displaying minimal reaction to the Fed’s rate cut, as on-chain flows kept volatility in check.
ETH: Ether mirrored this subdued atmosphere, remaining around $3,270 with no discernible catalyst to alter its recent trajectory.
Gold: Gold prices increased following the Fed’s rate cut, despite ongoing uncertainty over future policy directions, while silver soared to record highs due to strong industrial demand and tight supply.
Nikkei 225: Most Asia-Pacific markets rose after the Fed’s third rate cut of the year, although Japan’s Nikkei 225 started strong before slipping by 0.11 percent.
Elsewhere in Crypto
- Official Trump Crypto Game Launched with $1 Million in Solana Meme Coin Rewards (Decrypt)
- Consumer Groups Align with Unions Attempting to Block U.S. Crypto Market Structure Bill (CoinDesk)
