Good morning, Asia. Know here what news is being made in the markets:
Welcome to the Asia Morning Briefing, a daily summary of the top stories and an overview of market action and analysis during US time. For a detailed overview of US markets, check out CoinDesk’s Crypto Daybook Americas.
Bitcoin traded around $112,100 in early Asia hours, slipping 0.5% hourly and 1.8% in 24 hours, but still up 3.4% for the week. Price action suggests consolidation rather than capitulation as traders await the Federal Reserve’s rate decision – even though a cut is almost a sure thing according to prediction markets – later this week.
“BTC is consolidating rather than chasing, while gold has slipped again, lending credence to the notion that there is an ongoing rotation of capital from metals to digital stores of value,” Singapore-based market maker Nflux said in a note to CoinDesk.
Gold’s comeback reinforces the narrative that liquidity is moving toward Bitcoin as investors look for high-beta hedges in a soft macro environment, Nflux writes.
Gracie Lin, CEO of OKEx Singapore, said trading desks were quietly accumulating rather than speculating.
“Traders are moving into USD stablecoins and concentrating liquidity in deep order books, creating what some might call a dry powder economy,” Lin told CoinDesk.
Lin said the situation has become more thoughtful as sentiment has improved following progress in US-China trade talks and rates continue to be cut in futures markets.
With traders using low leverage and keeping capital in the stable, Bitcoin looks set for a big move higher.
Lin said these dynamics suggest the market is “preparing for the next potential breakout phase” as macro conditions become more accommodative. ,
Nflux said the $110,000 level has emerged as key short-term support, marking an area where buyers have consistently stepped in over the past week.
Market Movement:
BTC: Bitcoin slipped 1.8% over the past 24 hours to around $112,100, a slight retreat from last week’s high as traders shored up ahead of the Federal Reserve’s rate decision.
ETH: Ether fell 3.8% to around $3,970, underperforming Bitcoin as traders shifted capital into BTC and stablecoins ahead of this week’s macro catalysts.
Sleep: In Asian trading, gold fell to a three-week low near $3,950, while LBMA representatives in Kyoto forecast prices to reach $4,980 within a year, offset by profit-booking on easing US-China tensions and expectations of a Fed rate cut.
Nikkei 225: Japan’s Nikkei 225 rose more than 1% to a record high above 51,000, leading to mixed Asian trading as investors awaited the Fed’s expected second 25-basis-point rate cut, with traders betting that Chairman Jerome Powell’s dovish stance could extend the rally.
Elsewhere in crypto:
- Tether provides proof of full physical support for its gold-based token as market cap tops $2 billion (block)
- Interesting Case of Crypto Treasury Buybacks Takes Unique Turn (Bloomberg)
- Athena-backed DEX Terminal Finance reaches $280M in pre-launch deposits (CoinDesk)