Asia Morning Brief: Cautious Calm Returns as BTC Holds $110K and Traders Tentatively Rebuild Risk

Bitcoin hovered near $110,000 and Ether traded around $3,880 early Monday in Asia, as liquidations eased and market makers reported clients cautiously re-entering risk after last week’s Fed-driven selloff.

Both major digital assets remain lower on the month — BTC down 10% and ETH off 14% — as investors continue consolidating positions following a volatile October.

Market maker FlowDesk noted in a Monday update that most clients have paused on adding fresh exposure since the Federal Reserve’s meeting, with activity dominated by short-term trades and portfolio rebalancing.
Still, the firm observed net buying across BTC, HYPE, and SYRUP — tokens linked to cash flow and buyback narratives — even as Solana-related assets lagged. Bitcoin dominance has climbed to about 60%, reflecting a preference for more liquid, large-cap holdings.

“Traders appear underexposed if markets rebound,” FlowDesk wrote, suggesting positioning has turned cleaner following last week’s deleveraging.

Derivatives Sentiment: Fear Lingers, But Panic Fades

Roughly $155 million in crypto derivatives positions were liquidated in the past 24 hours, per CoinGlass data — including $97 million in longs and $58 million in shorts.
The pattern points to a controlled flush of overleveraged longs rather than widespread capitulation, as funding rates and borrowing costs normalize.

FlowDesk highlighted elevated put skew and lingering caution despite a decline in volatility. Call selling and put buying continue to dominate BTC and ETH options, though cheap risk reversals could look attractive if spot markets stabilize. The firm expects volatility to drift lower into year-end.

Credit and Funding Trends

On the credit side, borrowing demand for altcoins remains firm as traders exploit negative funding and hedge locked tokens, while DeFi lending rates on Ethereum have eased slightly — down to 5.3% from 5.6% last week.

Overall, crypto markets start the week in wait-and-see mode, seeking a new catalyst to define November’s trend.

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Market Snapshot

• BTC: Steady near $110,300, showing early signs of stabilization after last week’s profit-taking and moderate derivatives deleveraging.
• ETH: Hovering around $3,900, up marginally as traders cautiously rebuild exposure.
• Gold: Closed at $4,003/oz, easing 0.5% Friday but up 3.7% in October — its third straight monthly gain — supported by geopolitical tensions and U.S. fiscal uncertainty despite hawkish Fed commentary.
• Nikkei 225: Continues climbing above 52,000, boosted by optimism around U.S.–China trade and strong tech earnings.