In Asia’s early trading hours, Bitcoin was priced around $112,100, experiencing a slight dip of 0.5% within the hour and a more significant drop of 1.8% over the last 24 hours. Despite these fluctuations, Bitcoin still recorded a weekly increase of 3.4%. This recent price action appears to reflect a phase of consolidation among traders as they await the Federal Reserve’s upcoming rate decision, which prediction markets indicate will likely result in a rate cut.
According to market maker Enflux, this consolidation indicates that traders are biding their time rather than pursuing aggressive trades. In contrast, gold prices have faced a decline, reinforcing the idea that capital is moving from traditional metal assets toward digital alternatives like Bitcoin. Enflux noted that the ongoing retreat in gold prices supports the narrative that market participants are pivoting toward higher-beta investments in light of a softening economic climate.
Gracie Lin, CEO of OKX Singapore, emphasized a trend where trading desks are focusing on strategic accumulation rather than speculative activities. She remarked that traders are increasingly rotating into USD stablecoins and concentrating their liquidity within deeper order books, creating what can be described as a “dry powder economy.” Lin mentioned that this cautious positioning in response to improving sentiment, especially following advancements in U.S.-China trade talks, could signal readiness for a significant market move. With reduced leverage usage among traders and increased capital allocated to stablecoins, Bitcoin appears poised for potential upward momentum.
Enflux identified the $110,000 price level as critical short-term support, noting it has been a zone where buyer engagement has been consistent throughout the past week.
Regarding overall market movements, Bitcoin’s recent performance shows a moderate pullback as traders adopt a wait-and-see approach ahead of the Federal Reserve’s anticipated announcement. Ether, in contrast, fell by 3.8% to approximately $3,970, showing underperformance relative to Bitcoin as traders shifted their focus on capital reallocation. Meanwhile, gold prices dipped to a three-week low near $3,950. This decline occurred despite optimistic forecasts from LBMA delegates in Kyoto projecting gold prices could rise to $4,980 within a year, influenced by diminishing tensions between the U.S. and China and profit-taking activities.
In Japan, the Nikkei 225 index climbed over 1%, reaching a record high above 51,000 as investors remained optimistic ahead of the Federal Reserve’s expected rate cut. Market participants are betting that a dovish stance from Federal Reserve Chair Jerome Powell might further spur this rally.
In the broader crypto landscape, noteworthy developments include Tether confirming full physical backing for its gold-based token, pushing its market value to over $2 billion. Meanwhile, the decentralized exchange terminal backed by Ethena has achieved substantial pre-launch deposits totaling $280 million.
