Asia Morning Wrap: Bitcoin Holds Range as Market Awaits Fed Outcome, Stablecoins See Uptick

Bitcoin Holds Steady Near $112K as Traders Wait for Fed Rate Decision

Bitcoin remained rangebound in Asian trading hours Tuesday, holding just above $112,000 as crypto traders paused ahead of the Federal Reserve’s upcoming rate decision later this week.

The world’s largest cryptocurrency slipped 1.8% over 24 hours and 0.5% in the past hour, trading around $112,100, yet it remains up 3.4% for the week, suggesting consolidation rather than renewed weakness.

Market participants are widely confident that the Fed will cut interest rates, but many remain cautious until confirmation arrives.

“BTC is consolidating rather than chasing momentum, while gold continues to fade,” said Singapore-based market maker Enflux in a note to CoinDesk. “Liquidity appears to be rotating away from metals into digital stores of value.”

According to Enflux, gold’s recent pullback supports the view that institutional investors are positioning for higher-beta exposure in crypto as macro conditions soften.

OKX Singapore CEO Gracie Lin said trading desks are “accumulating, not speculating,” with many moving capital into USD stablecoins to wait out volatility.

“Liquidity is being concentrated in deep order books — what some might call a dry-powder setup,” Lin said, adding that sentiment has improved on the back of U.S.-China trade progress and expectations of a dovish Fed.

With leverage declining and stablecoin balances rising, Lin said the market appears “poised for the next breakout phase” once macro signals align.

Enflux identified $110,000 as a key short-term support level, marking an area where buyers have consistently defended dips over the past week.

Market Snapshot

• Bitcoin (BTC): Down 1.8% to $112,100, consolidating below the $116,000 resistance.
• Ether (ETH): Fell 3.8% to $3,970, lagging Bitcoin as traders rotate into stables.
• Gold: Slid to a three-week low near $3,950, even as LBMA delegates in Kyoto forecast a climb toward $4,980 within a year.
• Nikkei 225: Rose 1% to a record above 51,000, leading regional gains as investors bet the Fed’s expected 25-basis-point cut and dovish tone from Chair Jerome Powell could extend global risk rallies.