Asia Market Open: Bitcoin Trades Sideways While Traders Stay Parked in Stablecoins Before Fed Call

Asia Morning Brief: Bitcoin Holds Steady as Traders Park Funds in Stablecoins Ahead of Fed Cut

Bitcoin held firm early Tuesday in Asia as traders took a cautious stance ahead of the U.S. Federal Reserve’s upcoming policy decision. With prediction markets showing near-unanimous expectations of a rate cut, crypto investors appear content to sit tight until confirmation.

The largest cryptocurrency traded around $112,100, down 1.8% over 24 hours but still 3.4% higher for the week, signaling a period of consolidation rather than weakness.

“BTC is consolidating rather than chasing, while gold slipped again, adding weight to the thesis that capital rotation is underway from metals to digital stores of value,” Singapore-based market maker Enflux said in a note to CoinDesk.

Enflux added that gold’s decline has strengthened the view that liquidity is shifting toward Bitcoin, as investors look for higher-volatility assets that can outperform in a softening macro environment.

OKX Singapore CEO Gracie Lin said trading desks have been gradually building exposure rather than speculating aggressively.
“Traders are rotating into USD stablecoins and concentrating liquidity in deep order books, creating what some may call a ‘dry powder economy,’” Lin told CoinDesk.

She added that positioning has turned more deliberate as confidence improves following progress in U.S.-China trade talks, with futures markets continuing to price in a Fed rate cut.
“With less leverage and more capital parked in stablecoins, Bitcoin seems to be coiling for its next significant move,” Lin said.

Enflux identified $110,000 as key near-term support, noting it’s an area where dip buyers have consistently stepped in over the past week.

Market Overview

• Bitcoin (BTC): Down 1.8% to $112,100, consolidating below last week’s highs as traders await the Fed’s rate decision.
• Ether (ETH): Fell 3.8% to $3,970, underperforming Bitcoin as investors rotated toward BTC and stablecoins.
• Gold: Slipped to a three-week low near $3,950 in Asia trading. Despite short-term weakness, LBMA delegates in Kyoto forecast prices could climb to $4,980 within a year, citing easing geopolitical tensions and expectations of monetary easing.
• Nikkei 225: Rose over 1% to a record above 51,000, leading mixed Asian trading as markets priced in the Fed’s expected second 25-basis-point rate cut. Traders anticipate a dovish tone from Chair Jerome Powell could fuel further risk appetite.

About The Author

ctleditor

See author's posts