Good morning, Asia. Here’s what’s moving the markets today.
Welcome to the Asia Morning Briefing, your daily snapshot of the top overnight stories and market action. For a full breakdown of U.S. markets, check out CoinDesk’s Crypto Daybook Americas.
Bitcoin Falls as Japan’s Bond Yields Surge
Bitcoin slipped under $90,000 during early Hong Kong trading as Japanese government bond yields spiked to levels not seen since 2008, shaking risk appetite across the region.
Japan’s 2-year government bond yield briefly hit 1.01%, the highest in 17 years, after BOJ Governor Kazuo Ueda signaled that the central bank will discuss whether a rate hike is appropriate at this month’s meeting.
The comments accelerated speculation that Japan’s decades-long low-rate environment is ending.
Yen Strength Pressures Risk Assets Including Crypto
Traders bought the yen aggressively during Tokyo’s morning session. A stronger yen typically leads to the unwinding of yen-funded carry trades a key source of liquidity fueling global risk assets throughout the year.
Crypto markets, which react quickly to liquidity shifts in Asia, dropped sharply:
- BTC fell below $87,500
- ETH followed the move lower
- Broader sentiment weakened as liquidity tightened
Prediction markets are also signaling uncertainty. On Polymarket, the odds of a December BOJ rate hike are now near 50%, up seven percentage points.
This week, traders will be focused squarely on:
- The yen’s direction
- BOJ communications
- Any hints of further tightening
Another burst of hawkish signaling could spark fresh volatility across Asian equities and crypto.
Market Movement
BTC
Bitcoin’s slide below $87,500 triggered a cascade of forced liquidations, wiping out more than $150 million in BTC long positions. Rising Japanese yields pressured leveraged traders to unwind quickly.
ETH
Ether dropped toward $2,850, with roughly $140 million in long liquidations as Asia’s rate outlook tightened liquidity conditions.
Gold
A Goldman Sachs survey shows nearly 70% of institutional investors expect gold to continue climbing. The largest group sees prices above $5,000 by 2026.
Nikkei 225
Asia-Pacific equities weakened Monday. Japan’s Nikkei 225 fell 1.3%, with traders awaiting China’s latest manufacturing data and pricing in an 87% probability of a U.S. Federal Reserve rate cut.
Elsewhere in Crypto
- Bitcoin ETFs are now BlackRock’s top revenue source, according to a company executive (CoinDesk).
- Terminal Finance, a DEX incubated by Ethena, scrapped its launch after the Converge chain failed to go live (The Block).
