Bitcoin held steady around the $112,100 mark during early Asian trading hours, showing a slight decline of 0.5% within the hour and a 1.8% dip over the past 24 hours. Despite this short-term pullback, Bitcoin remains up approximately 3.4% for the week, signaling consolidation as market participants await an upcoming Federal Reserve interest rate decision later this week.
Market makers in the region interpret the current price action as a phase of cautious positioning rather than a sharp sell-off. A Singapore-based market maker, Enflux, highlighted that the pattern suggests traders are consolidating holdings rather than aggressively chasing price movements. Concurrently, gold prices fell to a three-week low near $1,950 per ounce in Asian markets, reinforcing the view that liquidity is transitioning from traditional metals to digital assets such as Bitcoin, which is increasingly seen as a high-beta store of value amid softening macroeconomic conditions.
Gracie Lin, CEO of OKX Singapore, noted that trading desks have been quietly accumulating positions, favoring USD stablecoins and concentrating liquidity within deep order books. This trend, sometimes referred to as a “dry powder economy,” indicates that traders are deliberately positioning themselves with capital preserved in stable assets, anticipating potential market shifts.
The improved sentiment follows recent progress in U.S.-China trade negotiations and widespread expectations pricing in a likely Federal Reserve rate cut of 25 basis points. With reduced leverage utilization and increased stablecoin holdings, analysts observe that Bitcoin appears to be coiling for a potential breakout as macroeconomic factors lean towards accommodative monetary policy.
Enflux identified the $110,000 level as a critical short-term support range, where buyers have stepped in consistently over the past week, helping to stabilize Bitcoin’s price dynamics ahead of the forthcoming policy announcement.
Other crypto assets showed more pronounced movement. Ether (ETH) declined by approximately 3.8% to around $3,970, underperforming Bitcoin as capital rotated towards BTC and stablecoins amid macro uncertainty.
In traditional markets, Japan’s Nikkei 225 index surged over 1% to a fresh record exceeding 51,000 points, reflecting optimism about the expected second rate cut by the Federal Reserve. Market participants are watching closely for signals from Fed Chair Jerome Powell that could influence the direction of asset prices across regions.
Notably, the precious metals sector saw gold prices weaken despite forecasts by LBMA delegates in Kyoto projecting a rise to nearly $1,980 within a year. The drop is attributed to easing U.S.-China trade tensions, profit-taking, and anticipation of easier monetary policy.
In other crypto developments, Tether reaffirmed full physical backing for its gold-based stablecoin as its market valuation surpassed $2 billion. Additionally, Ethena-backed decentralized exchange Terminal Finance reported $280 million in pre-launch deposits, indicating growing interest in emerging crypto finance platforms.
