Asian cryptocurrency markets are maintaining a cautious equilibrium midweek as traders await key U.S. economic data and developments in China-U.S. trade relations.
Bitcoin (BTC) is trading near $108,164, showing a modest increase from the start of the week but still reflecting a 2% decline over the past seven days. Ethereum (ETH) remains close to the $3,815 mark, with trading volumes rising by 33% as market participants position themselves ahead of the upcoming U.S. Consumer Price Index (CPI) report scheduled for Friday.
According to QCP Capital, the crypto market is currently experiencing a “narrow-range equilibrium,” with the CPI report serving as the pivotal driver for both monetary policy expectations and overall market sentiment. The firm highlighted that a subdued CPI figure, such as a 0.2% increase, could reinforce optimism around a soft economic landing in the U.S., potentially bolstering Bitcoin’s upward momentum as market liquidity conditions improve. Until then, volatility is expected to remain elevated, with price dips potentially supported if the U.S. dollar weakens or real yields decline further.
Trade negotiations between Washington and Beijing are also influencing market dynamics. Polymarket data indicates a 77% likelihood that a tariff agreement will be reached by November 10, while the odds that previous threats of 100% tariffs on China will be implemented have dropped to 16%. QCP Capital interprets recent comments from former President Donald Trump, who characterized the forthcoming meeting with Chinese President Xi Jinping as “pragmatic” and expressed a desire to assist rather than hinder China, as a signal that a more conciliatory approach is anticipated.
This tentative de-escalation is reflected in relative stability across both cryptocurrency and equity markets, following last week’s significant $20 billion liquidation event and issues related to Binance’s collateral valuation. These developments have largely subsided, creating a cleaner environment for traders ahead of the critical CPI data.
Bitcoin remains above $108,000, consolidating after recent gains, although analyst caution persists. Standard Chartered has suggested that a dip below the $100,000 threshold may present a final buying opportunity before potential further upside.
Ethereum’s price action shows mixed signals after a $650 million transfer by the Ethereum Foundation triggered approximately $700 million in profit-taking and long position liquidations. Analysts remain divided on whether ETH will break out toward $5,000 or decline toward $2,850 if support around $3,470 fails to hold.
In traditional markets, gold continued its recent decline with futures slipping 0.3% to $4,097.80 an ounce following a pronounced 5.7% drop on Tuesday. Despite this, ongoing central bank purchases and expectations of interest rate cuts are expected to provide underlying support for bullion.
Asian equities also faced pressure, with Japan’s Nikkei 225 falling 1.5% amid renewed concerns over U.S.-China trade tensions sparked by reports of potential export restrictions imposed by the Trump administration.
Additional industry updates include a report from venture capital firm Andreessen Horowitz emphasizing the maturation of the crypto sector, as well as commentary on staffing changes within the industry linked to AI advancements. Meanwhile, heightened tensions are reported as Senate Democrats engage with crypto executives over proposed comprehensive digital asset legislation.
