Good Morning, Asia. Here's what's making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas.

Bitcoin traded around $112,100 in early Asia hours, slipping 0.5% on the hour and 1.8% over 24 hours but still up 3.4% for the week. The price action suggests consolidation rather than capitulation as traders wait for the Federal Reserve’s rate decision – even though a cut is almost a certain thing according to prediction markets – later this week.

“BTC is consolidating rather than chasing, while gold slipped again, adding weight to the thesis that capital rotation is underway from metals to digital stores of value,” Enflux, a market maker based in Singapore, said in a note to CoinDesk.

Enflux wrote that Gold’s retreat has strengthened the narrative that liquidity is shifting toward Bitcoin as investors look for higher-beta hedges in a softening macro environment.

OKX Singapore CEO Gracie Lin added that trading desks are quietly accumulating rather than speculating.

“Traders are rotating into USD stablecoins and concentrating liquidity in deep order books, creating what some may call a dry powder economy,” Lin told CoinDesk.

Lin added that positioning has become more deliberate as sentiment improves following progress in U.S.-China trade talks and futures markets continue to price in a rate cut.

With traders using less leverage and keeping capital parked in stables, Bitcoin appears to be coiling for a larger move.

Lin said these dynamics suggest the market is “preparing for the next potential breakout phase” as macro conditions turn more accommodative. .

Enflux said the $110,000 level has emerged as key short-term support, marking a zone where buyers have consistently stepped in over the past week.

Market Movement:

BTC: Bitcoin slipped 1.8% over the past 24 hours to about $112,100, extending a mild pullback from last week’s highs as traders stayed sidelined ahead of the Federal Reserve’s rate decision.

ETH: Ether fell 3.8% to around $3,970, underperforming Bitcoin as traders rotated capital into BTC and stablecoins ahead of this week’s macro catalysts.

Gold: Gold fell to a three-week low near $3,950 in Asia trading even as LBMA delegates in Kyoto forecast prices to climb to $4,980 within a year, with easing U.S.-China tensions and profit-taking offset by expectations of a Fed rate cut.

Nikkei 225: Japan’s Nikkei 225 rose over 1% to a record above 51,000, leading mixed Asian trading as investors awaited the Fed’s expected second 25-basis-point rate cut, with traders betting a dovish tone from Chair Jerome Powell could extend the rally.

Elsewhere in Crypto:

• Tether attests to full physical backing for its gold-based token as market value tops $2 billion (The Block)
• The Curious Case for Crypto Treasury Buybacks Takes Unique Turn (Bloomberg)
• Ethena-Backed DEX Terminal Finance Reaches $280M in Pre-Launch Deposits (CoinDesk)