Asia Markets: Cautious Calm Settles Over Bitcoin as Risk Positions Rebuild

Asia Morning Brief: Bitcoin Steadies at $110K as Traders Tiptoe Back Into Risk

Bitcoin hovered near $110,000 and Ether traded around $3,900 on Monday in Asia, signaling a tentative return of calm to crypto markets after last week’s Fed-induced selloff.

Despite the rebound, both assets remain under pressure over the past month, with BTC down 10% and ETH off 14% as traders continue trimming exposure and rebalancing portfolios.

In a market update, FlowDesk reported that most of its clients have held back from adding significant new positions following the Federal Reserve’s policy meeting. Instead, flows were concentrated in short-term trading and portfolio adjustments.

Still, the firm noted net buying in BTC, HYPE, and SYRUP—tokens associated with cash flow or buyback themes—while Solana-linked assets underperformed. Bitcoin dominance has risen to nearly 60%, suggesting investors are favoring large-cap tokens amid ongoing uncertainty.

“Traders now appear underexposed if the market rebounds,” FlowDesk wrote, highlighting a cleaner positioning setup following recent deleveraging.

Derivatives: Controlled Liquidations, Lingering Fear

Roughly $155 million in crypto derivatives were liquidated over the past 24 hours, according to CoinGlass. Of that, $97 million were long positions and $58 million were shorts—an indication of a moderate long flush rather than a full-blown capitulation.

FlowDesk noted that put skew remains elevated, reflecting lingering caution even as volatility cools. Call selling and put buying continue to dominate both BTC and ETH options. The firm expects volatility to drift lower toward year-end, with cheap risk reversals potentially attractive if spot prices stabilize.

Credit and Funding: DeFi Rates Ease Slightly

In crypto credit markets, borrowing demand for altcoins remains strong as traders hedge positions or exploit negative funding spreads. Meanwhile, DeFi lending rates on Ethereum slipped from 5.6% to 5.3%, signaling softer demand for leverage.

Overall, the crypto market enters the week in a cautious holding pattern, awaiting a fresh catalyst to drive direction.

Market Overview

• BTC: Holding near $110,300, showing early signs of stabilization after last week’s deleveraging.
• ETH: Trading around $3,900, with traders slowly rebuilding risk exposure.
• Gold: Settled at $4,003/oz, down 0.5% Friday but still up 3.7% in October, supported by haven flows amid U.S. fiscal concerns.
• Nikkei 225: Advanced above 52,000, lifted by optimism around U.S.–China trade and strong tech earnings.

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