Asia Morning Brief: Bitcoin Holds $110K as Traders Cautiously Rebuild Risk Exposure
Bitcoin (BTC) steadied around $110,000 and Ether (ETH) hovered near $3,900 early Monday in Asia, signaling a cautious recovery across crypto markets following last week’s Federal Reserve–driven selloff.
Both assets remain lower for the month — BTC down about 10% and ETH 14% — as traders consolidate positions and reassess risk appetite amid lingering macro uncertainty.
In a note to clients, market maker FlowDesk said most participants have been hesitant to add new exposure since the Fed meeting, with activity centered on short-term trading and portfolio rebalancing. Still, the firm observed net inflows into BTC, HYPE, and SYRUP, tokens tied to buyback or cash flow narratives, even as Solana-linked assets underperformed.
Bitcoin dominance has climbed to roughly 60%, reflecting a preference for blue-chip assets and cleaner positioning after a wave of deleveraging.
“Traders appear underexposed if markets rebound,” FlowDesk noted, describing sentiment as cautious but structurally healthier.
Derivatives: Caution Persists Despite Easing Volatility
Roughly $155 million in crypto derivatives were liquidated over the past 24 hours, according to CoinGlass, including $97 million in long positions and $58 million in shorts. The data suggests a controlled shakeout of overleveraged longs rather than widespread panic selling.
FlowDesk highlighted elevated put skew and subdued volatility, with call selling and put buying continuing to dominate BTC and ETH options. The firm expects volatility to gradually decline into year-end, while cheap risk reversals could become appealing should spot markets stabilize.
Credit Markets: Funding Pressure Eases
Borrowing demand for altcoins remains strong as traders hedge locked tokens and capitalize on negative funding spreads. Meanwhile, DeFi lending rates on Ethereum have edged lower — down to 5.3% from 5.6% last week — signaling a modest cooling in leverage demand.
Overall, crypto markets begin the week in a holding pattern, waiting for a clear catalyst to break the current consolidation phase.
Market Snapshot
- BTC: Steady near $110,300, stabilizing after last week’s deleveraging and profit-taking.
- ETH: Around $3,900, as traders cautiously rebuild exposure.
- Gold: Settled at $4,003/oz, down 0.5% Friday but still up 3.7% in October — its third consecutive monthly gain, supported by haven flows and fiscal uncertainty.
- Nikkei 225: Above 52,000, buoyed by optimism over U.S.–China trade talks and strong tech earnings.
