Asia Morning Brief: Bitcoin Steady as Traders Await Fed Decision

Crypto markets steadied early Tuesday in Asia as traders held positions ahead of the U.S. Federal Reserve’s policy announcement later this week, with rate cuts now seen as virtually certain.

Bitcoin (BTC) traded around $112,100, slipping 0.5% over the past hour and 1.8% in 24 hours, though still up 3.4% for the week. The muted move reflected consolidation rather than capitulation, with traders largely sidelined until confirmation of the Fed’s decision.

“BTC is consolidating rather than chasing, while gold slipped again, adding weight to the thesis that capital rotation is underway from metals to digital stores of value,” said Singapore-based market maker Enflux in a note to CoinDesk.

Enflux added that gold’s weakness has reinforced the narrative of liquidity migrating into Bitcoin as investors seek higher-beta hedges in a softening macro environment.

OKX Singapore CEO Gracie Lin noted that institutional desks are accumulating rather than speculating.
“Traders are rotating into USD stablecoins and concentrating liquidity in deep order books, creating what some may call a ‘dry powder economy,’” Lin told CoinDesk.

According to Lin, positioning across major desks has become more deliberate as sentiment improves amid progress in U.S.-China trade talks and futures markets continue to price in a rate cut.
“With less leverage and more capital sitting in stables, Bitcoin appears to be coiling for its next significant move,” she added.

Enflux pointed to $110,000 as key short-term support, marking a zone where buyers have consistently stepped in over the past week.

Market Overview

• Bitcoin (BTC): Down 1.8% to $112,100, extending a mild retreat from last week’s highs as traders await the Fed’s decision.
• Ether (ETH): Fell 3.8% to $3,970, underperforming BTC as capital rotated toward Bitcoin and stablecoins.
• Gold: Dropped to a three-week low near $3,950 in Asia trading. LBMA delegates in Kyoto forecast a rise toward $4,980 within a year, citing easing U.S.-China tensions and profit-taking ahead of Fed easing expectations.
• Nikkei 225: Gained 1% to a record above 51,000, leading mixed Asian equities as traders anticipated the Fed’s second 25-basis-point rate cut. A dovish tone from Chair Jerome Powell could extend the rally, market participants said.