Asia Morning Brief: Bitcoin Holds $110K as Traders Cautiously Rebuild Risk Positions
Bitcoin (BTC) traded steadily near $110,000 and Ether (ETH) hovered around $3,900 as Asian markets opened Monday, with traders showing tentative signs of re-entering risk after last week’s Federal Reserve–driven correction.
Despite the modest recovery, both assets remain lower on the month — BTC down about 10% and ETH 14% — as participants continue to reduce leverage and consolidate portfolios.
In a note to clients, FlowDesk reported that most traders have held off on adding significant new exposure since the Fed meeting, focusing instead on short-term trading and portfolio rebalancing. Still, the firm observed net buying across BTC, HYPE, and SYRUP — tokens backed by cash flow or buyback narratives — while Solana-linked assets lagged.
Bitcoin dominance has climbed to roughly 60%, suggesting traders are favoring larger-cap, more liquid assets.
“Positioning now looks cleaner after recent deleveraging,” FlowDesk wrote, adding that many investors remain underexposed if the market rebounds.
Derivatives: Liquidations Ease, Sentiment Still Guarded
Around $155 million in crypto derivatives were liquidated over the past 24 hours, according to CoinGlass. Of that total, $97 million were long positions and $58 million were shorts, indicating a moderate reset of leverage rather than a broad selloff.
FlowDesk noted that put skew remains elevated, showing continued caution even as volatility stabilizes. Call selling and put buying dominate in both BTC and ETH options, though cheap risk reversals could become appealing if spot markets hold steady. The firm expects volatility to trend lower into year-end.
Funding and Credit Markets
Borrowing demand for altcoins remains firm as traders hedge positions or exploit negative funding spreads, while DeFi lending rates on Ethereum have edged down to 5.3% from 5.6% last week — a sign of easing leverage conditions.
Overall, crypto markets enter the week in a cautious holding pattern, awaiting a catalyst that could reignite risk appetite.
Market Overview
- BTC: Holding near $110,300, stabilizing after last week’s deleveraging and profit-taking.
- ETH: Around $3,900, inching higher as traders cautiously rebuild exposure.
- Gold: Closed at $4,003/oz, down 0.5% Friday but still up 3.7% in October, its third consecutive monthly gain amid geopolitical and fiscal uncertainty.
- Nikkei 225: Trading above 52,000, supported by optimism on U.S.–China trade progress and strong tech earnings.
