Good morning, Asia. Here’s what’s making news in the markets:
Welcome to the Asia Morning Briefing, a daily summary of the top stories in the US hour and an overview of market moves and analysis. For a detailed overview of US markets, see The Americans.
Bitcoin traded at $112,100 in early Asia, slipping 0.5% on the hour and 1.8% in 24 hours but still up 3.4% for the week. Price action suggests consolidation rather than capitulation as traders wait for the Federal Reserve’s rate decision – Even a cut is almost a sure thing According to market predictions – later this week.
“BTC is consolidating rather than chasing, while gold has fallen again, adding weight to the thesis that the circulation of capital is underway from metals to digital stores of value,” Enflux, a Singapore-based market maker, said in a note to Coindesk.
Enflux writes that the retreat of gold has reinforced the narrative that liquidity is shifting towards Bitcoin as investors seek higher hedges in a softening macro environment.
OKX Singapore CEO Gracie Lin added that trading desks are gathering quietly rather than thinking.
“Traders are turning to USD stableCoins and concentrating liquidity in deep order books, creating what can be called a dry powder economy,” Lin told Coindesk.
Lin added that the positioning has become more deliberate as sentiment improves following progress in US-China trade talks and futures markets continue to price in a cutting rate.
With traders using less leverage and keeping capital parked in stables, Bitcoin appears to be coiling for a bigger move.
Lin said these dynamics suggest the market is “preparing for the next potential breakout phase” as macro conditions become more accommodative. .
Enflux said the $110,000 level has emerged as key short-term support, marking a zone where buyers have continued to walk over the past week.
Market Movement:
BTC: Bitcoin slipped 1.8% over the past 24 hours to $112,100, extending a mild pullback from last week’s highs as traders remained sidelined ahead of the Federal Reserve’s rate decision.
Eth: Ether fell 3.8% to around $3,970, underperforming Bitcoin as traders turned capital into BTC and StableCoins ahead of this week’s macro catalysts.
Gold: Gold fell to a three-week low near $3,950 in Asian trade even as LBMA delegates forecast Kyoto prices to climb to $4,980 for a year, with the avoidance of US-China tensions and gains offset by expectations of a Fed rate cut.
Nikkei 225: Japan’s Nikkei 225 rose more than 1% to a record above 51,000, leading mixed Asian trade as investors awaited an expected second 25-basis-point rate cut, with traders betting a dovish tone from chair Jerome Powell could extend the rally.
