Bitcoin Steadies Near $112K as Traders Await Fed Decision, Park Funds in Stablecoins
Bitcoin held steady in early Asia trading Tuesday, hovering near $112,100 as traders positioned cautiously ahead of this week’s Federal Reserve policy announcement. Despite near-certainty in markets that the Fed will deliver a rate cut, investors appear to be waiting for official confirmation before taking new positions.
The leading cryptocurrency slipped 1.8% over the past 24 hours and 0.5% in the past hour, yet remains 3.4% higher on the week, signaling a consolidation phase rather than renewed weakness.
“Bitcoin is consolidating rather than chasing momentum,” said Singapore-based market maker Enflux in a note to CoinDesk. “Gold’s continued retreat supports the idea that capital rotation is underway from metals to digital stores of value.”
According to Enflux, liquidity appears to be flowing toward Bitcoin as investors seek higher-beta hedges in an increasingly accommodative macro backdrop.
OKX Singapore CEO Gracie Lin said institutional desks are quietly accumulating exposure instead of engaging in speculative trading.
“Traders are rotating into stablecoins and concentrating liquidity in deep order books — effectively building a ‘dry powder economy,’” Lin told CoinDesk.
She added that sentiment has improved alongside progress in U.S.-China trade negotiations, with derivatives markets continuing to price in a dovish Fed.
“With less leverage and more capital parked in stables, Bitcoin looks coiled for a breakout once macro catalysts align,” Lin said.
Enflux identified $110,000 as a critical short-term support level, describing it as a “buy zone” that’s repeatedly attracted dip buyers in recent sessions.
Market Overview
- BTC: Down 1.8% to $112,100, consolidating below $116,000 resistance as traders await policy clarity.
- ETH: Fell 3.8% to $3,970, underperforming BTC as rotation into stablecoins continued.
- Gold: Dropped to a three-week low near $3,950 in Asia despite optimism from LBMA delegates in Kyoto, who forecast a climb toward $4,980 within a year.
- Nikkei 225: Gained 1% to a record above 51,000, leading mixed Asian trading ahead of the Fed’s expected 25-basis-point rate cut. Traders expect a dovish message from Chair Jerome Powell could extend equity gains.
