Good morning, Asia. Here’s what’s making news in the market:
Welcome to Asia Morning Briefing. We bring you a daily summary of the top news US time, as well as an overview of market movements and analysis. For a detailed overview of the US market, see CoinDesk’s Crypto Daybook Americas.
Bitcoin was trading at around $112,100 in early Asian time, down 0.5% on the hour and 1.8% in 24 hours, but still up 3.4% on the week. The move signals consolidation rather than capitulation as traders await the Federal Reserve’s decision on interest rates later this week, even though market expectations say a rate cut is all but certain.
“Bitcoin is consolidating rather than chasing, while gold has fallen again, lending weight to the theory that a capital rotation from metals to digital stores of value is underway,” Singapore-based market maker Enfrax said in a note to CoinDesk.
Enfrax wrote that the decline in gold reinforces the view that liquidity is shifting toward Bitcoin as investors seek high-beta hedges amid a softening macro environment.
OKX Singapore CEO Gracie Lin added that trading desks are quietly accumulating rather than speculating.
“Traders are rotating into USD stablecoins and concentrating liquidity in deep order books, creating what some are calling a dry powder economy,” Lin told CoinDesk.
Lin added that sentiment has improved following progress in US-China trade talks and positioning has become more cautious as futures markets continue to price in rate cuts.
Bitcoin appears to be reeling for even bigger moves as traders reduce leverage and keep their funds stable.
Lin said these moves suggest the market is “preparing for the next possible breakout stage” as the macro environment moves in a more accommodative direction. .
Anfrax said the $110,000 level has emerged as key short-term support and marks a zone where buyers have been consistently intervening over the past week.
Market movements:
Bitcoin: Bitcoin fell 1.8% in the past 24 hours to about $112,100, widening its modest pullback from last week’s highs as traders refrained from participating ahead of the Federal Reserve’s interest rate decision.
Ethereum: Ether fell 3.8% to around $3,970, underperforming Bitcoin as traders circulated capital into BTC and stablecoins ahead of this week’s macro catalyst.
gold: Gold fell to a three-week low of around $3,950 in Asian trading, even as the LBMA delegation in Kyoto predicted that the price would rise to $4,980 within a year as easing U.S.-China tensions and profit-taking were offset by expectations for Fed rate cuts.
Nikkei 225: Japan’s Nikkei Stock Average rose more than 1% to a record high of over 51,000 yen, leading mixed trading in Asia as investors awaited the Federal Reserve’s expected second 25 basis point interest rate cut, with traders betting that Chairman Jerome Powell’s dovish tone could extend the rally.
Elsewhere in cryptocurrencies:
- Tether Proves Full Physical Backing for Gold-Based Tokens with Market Value Exceeding $2 Billion (The Block)
- The strange case regarding the buyback of crypto government bonds takes a unique turn (Bloomberg)
- Ethena-backed DEX Terminal Finance hits $280M in pre-launch deposits (CoinDesk)
