Asia Morning Briefing
Here’s a quick look at the latest news and market movements from the U.S. as the Hong Kong business week kicks off.
Bitcoin (BTC) is currently trading above $110,000, while Ether sits at around $3,880.
Both of these major cryptocurrencies have experienced notable declines over the last month; BTC has decreased by 10%, and ETH is down 14%. Traders seem to be consolidating their positions for now.
Market maker Flowdesk indicated that many of their clients have paused adding new risks since last week’s Federal Reserve meeting. Instead, trading strategies have mostly focused on short-term moves and portfolio adjustments.
Interestingly, there remains a net long interest in BTC, HYPE, and SYRUP—tokens that benefit from cash flow and buyback programs. However, assets linked to Solana haven’t quite kept pace with Bitcoin, which has reached about 60% market dominance. Flowdesk noted that many traders might not have enough exposure if the market begins to rebound, suggesting a cleaner stance after earlier market corrections.
Yet, there’s still a sense of uncertainty in the derivatives market. Approximately $155 million in crypto derivatives were liquidated in the last 24 hours, with $97 million in long positions and $58 million in shorts cut. This trend might indicate some overleveraged longs instead of widespread panic selling, as funding rates and borrowing fees are normalizing.
Flowdesk also pointed out an increase in put skew and ongoing caution, even with lower volatility. Call selling and put buying are prevalent in BTC and ETH options.
Riskier options could be appealing once the spot market settles, and a drop in volatility is anticipated as the year wraps up, according to Flowdesk.
On the credit side, there’s still robust demand for altcoins as traders take advantage of negative funding and Hedgelock tokens. Meanwhile, benchmark lending rates for DeFi on Ethereum have slipped from 5.6% to 5.3%.
Overall, the cryptocurrency market seems to be in a wait-and-see phase, looking for catalysts to stir some activity.
Bitcoin: Bitcoin remained stable at around $110,300 on Monday, pointing to some stabilization after a week of profit-taking and mild deleveraging across derivatives markets.
Ethereum: Ether hovered near $3,900, showing a slight uptick as traders cautiously adjusted their exposure following last week’s broad market selloff.
Gold: After bouncing back from two-week lows earlier, gold dipped 0.5% on Friday, closing at approximately $4,003 an ounce. Metal prices rose 3.7% in October—it marks the third consecutive month of gains—supported by geopolitical tensions and U.S. fiscal uncertainties that have bolstered haven demand. However, the Fed’s hawkish stance and a strong dollar have decreased the likelihood of a rate cut in December.
