Good Morning, Asia. In the latest market developments, Bitcoin (BTC) is trading around $106,500 as Hong Kong enters its second business day of November. The world’s leading digital asset remains steady after suffering a significant decline, losing nearly 13% of its value over the past month. Similarly, Ethereum (ETH) is trading at approximately $3,620, reflecting an almost 20% downturn for the same period.
Market participants are currently debating the root causes of this decline, with differing opinions emerging from trading desks. Enflux, a Singapore-based market maker, attributes the recent weakness in the crypto sector to a rotation trend, highlighting that liquidity is shifting back toward equity markets, particularly in sectors such as artificial intelligence and fintech. In their note to CoinDesk, they stated, “Wall Street is gearing up for another leg higher, powered by liquidity and infrastructure bets, while crypto continues to test where its floor truly lies.”
Contrarily, QCP Capital takes a different stance in its daily update, suggesting that the recent price drops are less related to macroeconomic factors. They argue that long-time Bitcoin holders, referred to as “OGs,” are currently cashing out profits following an extended rally, leading to substantial transfers of BTC to exchanges like Kraken. On-chain data indicates that around 405,000 BTC previously held for a long time has moved in the last month, yet prices have managed to remain above the $100,000 threshold. QCP noted, “The market has absorbed legacy supply without breaching key support,” pointing out that leverage levels are low and funding rates remain stable.
Despite these contrasting views, there is consensus that the crypto market continues to be in a consolidation phase. It finds itself caught between profit-taking by early investors and the broader migration of risk capital back into traditional assets. For the time being, Bitcoin’s ability to remain above the $100K mark signals structural resilience, even as it faces challenges in competing with the liquidity-driven narrative underpinning global equity markets.
In terms of market movement, Bitcoin saw a slight pullback during Asian trading hours, settling around $106,500 as profit-taking by long-term holders outweighed a small rebound in greater risk assets. Ethereum is lagging behind, staying near $3,620, as traders shift away from altcoins amid declining decentralized finance (DeFi) activity and weakened risk appetite.
In the commodities market, gold steadied above $4,000 an ounce, rising by 0.6% as traders consider China’s decision to eliminate a long-standing gold tax rebate. This policy change might suppress local demand but potentially elevate global prices by tightening supply and increasing replacement costs.
In other cryptocurrency-related news, Ripple has acquired the crypto wallet firm Palisade to enhance its institutional payments business. Additionally, the Nasdaq has issued a reprimand to TON Treasury concerning a significant stock sale, and Ferrari is set to launch a crypto token aimed at allowing affluent fans to partake in the auction of its 499P model.
