Asia Morning Update: Bitcoin Holds Steady, Traders Tiptoe Back Into Risk

Asia Morning Brief: Bitcoin Steadies at $110K as Market Sentiment Gradually Improves

Bitcoin (BTC) hovered near $110,000 and Ether (ETH) traded close to $3,900 as Asian markets opened Monday, with traders cautiously rebuilding risk after a week of Fed-driven volatility.

The recent rebound comes after a month of weakness — BTC has slipped 10% and ETH about 14% — as investors trimmed exposure amid shifting macro conditions and renewed focus on U.S. interest rates.

In its latest market update, FlowDesk said clients have mostly stayed on the sidelines since the Federal Reserve meeting, keeping new risk limited and focusing instead on short-term trades and portfolio adjustments.

Still, the firm noted net buying activity across BTC, HYPE, and SYRUP, tokens linked to buyback or cash flow themes, while Solana-affiliated assets lagged. Bitcoin dominance has risen to nearly 60%, signaling a shift back toward more liquid, large-cap tokens.

“Traders look underexposed if the market rebounds,” FlowDesk said, adding that positioning now appears cleaner after recent deleveraging.

Derivatives Show Controlled Liquidations

Roughly $155 million in crypto derivatives were liquidated over the past 24 hours, according to CoinGlass, with $97 million in longs and $58 million in shorts wiped out. The data suggests a modest shakeout rather than a full-scale selloff, as funding rates and borrowing costs return to normal levels.

FlowDesk said put skew remains elevated, showing lingering caution even as volatility eases. Call selling and put buying continue to dominate BTC and ETH options markets. The firm expects volatility to drift lower into year-end, noting that risk reversals could look attractive if spot prices stabilize.

Credit and DeFi Funding Trends

In credit markets, borrowing demand for altcoins remains firm as traders hedge positions and exploit negative funding spreads. DeFi lending rates on Ethereum have eased slightly — now 5.3%, down from 5.6% last week — reflecting softer demand for leverage.

Overall, crypto markets begin the week in a cautious but stable posture, awaiting a new catalyst to set the tone for November.

Market Snapshot

• BTC: Hovering around $110,300, showing signs of consolidation after last week’s deleveraging.
• ETH: Trading near $3,900, with gradual risk-on sentiment returning.
• Gold: Closed at $4,003/oz, down 0.5% Friday but up 3.7% in October, supported by safe-haven demand amid fiscal and geopolitical uncertainty.
• Nikkei 225: Above 52,000, lifted by optimism on U.S.–China trade talks and strong tech earnings.