“Asia Markets Open Higher as Equities Gain on Fed Cut Speculation, Crypto Cautious”

Crypto markets are holding steady as traders await Thursday’s U.S. Consumer Price Index (CPI) report. Bitcoin trades just above $111,600, while Ethereum hovers near $4,298. The CD20 index, tracking top digital assets, is up 1.6%, trading above 4,000.

Equities and gold have rallied on rate-cut expectations, but crypto remains rangebound. August’s Nonfarm Payrolls added only 22,000 jobs versus 75,000 expected, driving futures higher and sending 2-year Treasury yields to year-lows as markets price in 72 basis points of Fed cuts. Yet digital assets show limited reaction, diverging from broader risk sentiment.

Options markets confirm defensive positioning. QCP Capital notes rising put skews and elevated short-term implied volatility ahead of CPI. Polymarket data shows ETH has a 70% chance of staying above $4,600 this month but only 13% odds of surpassing $5,600. Solana stands out, with rising odds of a new all-time high before 2026, suggesting improving market breadth.

Enflux describes a “split-screen reality”: speculative narratives dominate headlines, while institutional adoption and infrastructure steadily advance. WLFI’s recent wallet freezes, including Justin Sun’s, highlight the speculative side, though onchain data shows Sun’s transfers occurred after the crash, driven by market-wide shorting.

Market Snapshot:

BTC: Holding above $111K; breakout possible, with downside risk toward $100K.
ETH: Around $4.3K, reflecting cautious positioning.
Gold: ~$3,636/oz, boosted by rate-cut expectations and safe-haven demand.
Nikkei 225: +0.9%, reaching record highs amid fiscal stimulus hopes.
S&P 500: +0.2%, as investors await CPI to gauge Fed moves.

Takeaway: Short-term volatility and governance drama may cap crypto gains, but institutional and regulatory foundations continue to strengthen. As Enflux notes, “Structural legitimacy, not speculation, remains the real story of 2025.”