Asia Morning Brief: Bitcoin Steadies Above $114K as Whales Accumulate and Shorts Reset Positions

Bitcoin Steadies Above $114K as Whales Absorb Supply and Shorts Unwind

On-chain data show roughly 62,000 BTC have moved out of long-term storage since mid-October, signaling the first meaningful dip in illiquid supply this cycle. The shift has softened one of Bitcoin’s strongest structural tailwinds, yet steady whale accumulation and short-side cleanups have helped prices stabilize around $114,000.

Supply Dynamics Shift

Data from Glassnode indicate that around 62,000 BTC—about 0.4% of the total illiquid base—have been transferred from long-dormant wallets since mid-October. This marks the first notable outflow from inactive holdings in months, hinting that some long-term holders are moving coins back into circulation.

Despite that, large holders have been quietly absorbing supply. Glassnode data show whales—wallets holding significant balances—have continued to increase their positions over the past 30 days, with little evidence of selling since Oct. 15.

Smaller holders, by contrast, have remained net sellers. Wallets in the 0.1–10 BTC range (roughly $10,000–$1 million) have been trimming exposure since late 2024, suggesting a gradual redistribution phase from retail to larger, more patient investors.

Derivatives Stay Balanced

Leverage remains orderly across the derivatives market. Hyperliquid leaderboard data show around $4.1 billion in open interest split almost evenly between longs and shorts, with a mild tilt toward the bearish side.

Over the last 24 hours, CoinGlass recorded about $413 million in liquidations—roughly $337 million from short positions. The wipeout was moderate rather than extreme, helping clear excessive leverage without triggering a full-blown short squeeze or panic buying.

A Controlled Recovery

Together, these dynamics reflect a measured reset rather than a breakout. Bitcoin’s rise from $110,000 to $114,900 has been fueled by spot absorption and light short covering, not momentum chasing.

Glassnode data suggest the market now sits in a neutral zone: illiquid supply is easing, whales are holding, and leverage is balanced. For now, Bitcoin appears likely to range between $113,000 and $116,000 until a new catalyst—monetary or macro—emerges.

With the Federal Reserve widely expected to deliver a dovish tone at this week’s FOMC meeting, traders are asking the same question: what comes next?

Market Snapshot

BTC: Bitcoin’s recovery from $110K to $114.9K reflects steady accumulation by whales and moderate short covering—supportive, but not indicative of a fresh uptrend.

ETH: Ether (ETH) advanced to $4,186, up 6% in 24 hours, outperforming Bitcoin as traders rotated into higher-beta assets. On-chain and derivatives data suggest the move remains momentum-driven, with limited evidence of new inflows.

Gold: JPMorgan projects gold to reach $5,055 per ounce by 2026 and $6,000 by 2028, framing recent weakness as a healthy consolidation within a long-term bull market supported by rate cuts, stagflation concerns, and central bank diversification away from the U.S. dollar.

Nikkei 225: Japan’s Nikkei 225 index surpassed 50,000 for the first time, buoyed by optimism over U.S.–China trade progress and expectations for stronger domestic demand under Prime Minister Sanae Takaichi’s economic agenda.