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Good morning, Asia. Here’s what’s making news in the markets:
Welcome to Asia Morning Briefing, a daily summary of the main stories during US hours and an overview of market movements and analysis. For a detailed overview of the US markets, see The Americans.
BTC is trading hands around $106,500 as Hong Kong works on the second day of November. The world’s biggest digital asset is steady after a one-week slide that has shed nearly 13% in the past month. Ethereum traded around $3,620, still down nearly 20% over the same period.
The debate among trading banks this week centers on what drives crypto weakness: macro or micro.
Singapore-based stock market Enflux wrote in a note to CoinDesk that the “real story today was the rotation,” with liquidity flowing out of crypto and back into AI- and fintech-driven equity markets.
“Wall Street is gearing up for another leg higher, fueled by liquidity and infrastructure bets, as crypto continues to test where its floor really lies,” the firm said in its note.
QCP Capital took a different view in its daily update, arguing that recent drawdowns have little to do with macros.
Instead, QCP wrote, legacy holders, the “OGs” of Bitcoin, are taking profits after a long rally, sending large BTC transfers to exchanges like Kraken. On-chain data shows about 405,000 BTC in long supply have moved in the past month, but prices have remained above the $100,000 threshold.
“The market has absorbed the legacy supply without breaching key support,” QCP said, noting that leverage remains low and funding rates steady.
Despite divergent explanations, both sides agree that the crypto consolidation phase is not over.
The market is caught between the profit from the first holders and the wider rotation of risk capital in traditional assets. For now, BTC’s ability to stay above $100K suggests structural resistance, even as it struggles to compete with the liquidity narrative fueling global stocks.
The movement of the market
BTC: Bitcoin fell to around $106,500 during Asian trade, extending its recent downtrend as selling by long-term holders outpaced a slight rebound in broader risk assets.
ETH: Ether hovered near $3,620, underperforming Bitcoin as traders continued to rotate out of alt exposure amid fading DeFi activity and weak risk appetite.
Gold: Gold settled above $4,000 an ounce on Monday, rising 0.6% as traders weighed China’s move to end a long-running gold tax rebate, a policy that could dampen local demand but lift global prices by tightening supply and raising replacement costs in the market.
