Bitcoin Plunges as Asia Market Opens, Risk Aversion Grows Amid Fed Outlook
Good morning, Asia! Here's a quick look at what's happening before the markets open.
Bitcoin took a sharp dive, dropping to $93,000 on Monday in Asia, its biggest fall since March. This comes as traders adjust their expectations for a December US rate cut, and global markets start the week on a cautious note.
The liquidation data tells a story of significant losses. Over 24 hours, a staggering $617.45 million was wiped out, with longs at $394.50 million and shorts at $222.95 million. Bitcoin contributed $242.19 million, and Ether $169.06 million. The largest single liquidation was a $30.60 million BTC position on Hyperliquid.
Wall Street set a weak tone, following Friday's slump. Futures weakened further, leaving the Dow down 1.65%, the S&P 500 off 1.66%, and the Nasdaq 2.29% lower.
The total crypto market cap fell below $3.3 trillion, according to CoinGecko.
- Bitcoin: $95,051, down 0.7%
- Ether: $3,172, down 0.7%
- XRP: $2.25, up 0.4%
- Total crypto market cap: $3.31 trillion, down 0.9%
Markets are becoming more cautious as the chances of a Fed rate cut in December shrink to 40%, pushing investors towards safer assets.
In Europe, the DAX, FTSE 100, CAC 40, and Euro Stoxx 50 all declined, adding to the global risk aversion.
Asia markets opened mixed. Japan's Nikkei 225 dropped 1.77%, Australia's S&P ASX 200 fell 1.35%, New Zealand's benchmark declined 1.58%, and Shanghai edged down 0.16%.
The focus remains on rate expectations, which are keeping risk in check. Crypto markets mirrored this shift, with spot ETF outflows and thinning liquidity, causing Bitcoin to lose its recent gains.
Japan's Financial Services Agency is considering new rules that could treat crypto as financial products subject to insider trading restrictions, with a flat 20% tax and new disclosures for 105 listed tokens, as reported by Asahi.
Equity traders are also keeping an eye on a busy week of earnings and delayed US data, which could influence the rate narrative. Tech leaders are under scrutiny as investors reassess valuations based on AI enthusiasm.
Liquidations continued to pile up throughout the session, totaling $389.39 million with $283.40 million from longs, and $76.11 million from short positions.
Traders believe that institutional conviction will determine whether the next move is a bottom or another decline.
