Good morning, Asia. Here’s what’s making news in the market:
Welcome to Asia Morning Briefing, your daily update on noteworthy news in the markets during U.S. hours, as well as a review of market movements and insights. For a comprehensive analysis of the U.S. market, check out CoinDesk’s Crypto Daybook Americas.
Bitcoin was trading at approximately $112,100 early in Asia, showing a decrease of 0.5% in the hour and 1.8% over the last 24 hours. Nevertheless, it has seen an increase of 3.4% for the week. The current price trends imply a phase of consolidation as traders await the Federal Reserve’s decision on interest rates – it’s not surprising but, you know, prediction markets are suggesting a cut is likely later this week.
According to Enfrax, a market maker based in Singapore, “Bitcoin is consolidating rather than pursuing aggressive moves, while gold has experienced another decline. This might indicate that there’s a shift of capital from metals to digital assets.”
They further noted that the drop in gold prices supports the idea that liquidity is flowing towards Bitcoin as investors look for high-beta hedges amid a more difficult economic landscape.
Gracie Lin, CEO of OKX Singapore, mentioned that trading desks are quietly gathering rather than making speculations.
“What we’re seeing is traders moving into USD stablecoins and concentrating liquidity into deep order books, effectively creating a situation some are calling a dry powder economy,” she explained.
Moreover, Lin observed that sentiment has improved due to advancements in U.S.-China trade talks, though positioning has grown more cautious as futures markets factor in potential rate reductions.
It seems like Bitcoin is bracing for even larger movements as traders cut leverage and maintain stable funds.
Lin added that these actions suggest the market is “getting ready for the next possible breakout stage” as the macro landscape shifts in a more favorable manner.
Enfrax indicated that the $110,000 mark has become a noteworthy short-term support level, a point where buyers have consistently stepped in over the past week.
Market movements:
Bitcoin: Bitcoin saw a 1.8% decline in the last 24 hours, now around $112,100, broadening its modest pullback from last week’s peaks as traders held back ahead of the Federal Reserve’s interest rate announcement.
Ethereum: Ether dropped by 3.8%, sitting at about $3,970, lagging behind Bitcoin as capital was shuffled into BTC and stablecoins looking towards this week’s macroeconomic trigger.
Gold: Gold dipped to a three-week low near $3,950 during Asian trading. Interestingly, an LBMA delegation in Kyoto anticipates prices could rise to $4,980 within a year, although current easing U.S.-China tensions and profit-taking are countered by expectations for Fed rate cuts.
Nikkei 225: The Nikkei Stock Average in Japan climbed over 1% to surpass 51,000 yen, steering mixed trading across Asia as investors expect the Federal Reserve’s second 25 basis point interest rate cut, with hopes that Chairman Jerome Powell’s dovish stance could sustain the rally.
Elsewhere in cryptocurrencies:
- Tether has surpassed a market value of $2 billion and is recognized as a fully backed gold-based token.
- The unusual situation of crypto government bond buybacks has taken an interesting twist.
- Ethena-backed DEX Terminal Finance has reached $280 million in pre-launch deposits.
