- Bitcoin traded steadily around $110,300 as the market consolidated.
- Traders largely paused adding new risk after the recent Fed meeting.
- Bitcoin dominance has risen to about 60% of the total cryptocurrency market.
With Bitcoin holding steady above the key $110,000 level as traders consolidate positions and reassess risk following last week’s hawkish signals from the U.S. Federal Reserve, a cautious calm settled over the cryptocurrency market at the start of the week.
Although conditions have stabilized after a turbulent period, underlying data from derivatives and credit markets suggest a “wait-and-see” approach has become dominant, with investors searching for fresh catalysts to drive the next major move.
As the business week began in Hong Kong, Bitcoin traded near $110,300 while Ether hovered around $3,880. Both assets have declined notably over the past 30 days, down roughly 10% and 14% respectively.
Market maker FlowDesk reported that clients largely “paused adding new risk” after the Fed meeting, with market activity dominated by short-term trades and portfolio rebalancing.
Despite the cautious stance, FlowDesk noted net buying in tokens with strong fundamentals such as BTC, HYPE, and SYRUP, even as some Solana-linked assets lagged.
This deleveraging has left many traders “less exposed if the market rebounds,” indicating cleaner market positioning, the firm wrote.
Fear persists in the derivatives market
While the spot market appears calm, the derivatives space still shows signs of anxiety. CoinGlass data indicates roughly $155 million in crypto derivatives were liquidated over the past 24 hours.
The split — with $97 million of long positions and $58 million of shorts wiped out — points to a modest uptick in overstretched bullish bets rather than widespread panic selling.
FlowDesk observed an “increased put skew and lingering caution despite quieter volatility,” suggesting traders continue to buy downside protection.
These cautious positions, dominated by put buying and call selling, could present opportunities if the market stabilizes.
“Cheap risk reversals may become attractive if the spot market steadies,” FlowDesk wrote, adding that volatility will likely “drift lower through year-end.”
Gold holds gains despite Fed hawkishness
On the broader macroeconomic front, gold has sustained recent gains despite headwinds from the Fed.
The precious metal closed Friday around $4,003 per ounce, marking a 3.7% rise in October and delivering a third consecutive monthly gain.
Despite hawkish Federal Reserve commentary and a stronger dollar that has reduced the odds of a December rate cut, haven demand for gold remains robust.
Ongoing geopolitical tensions and continued U.S. fiscal uncertainty continue to support the metal’s appeal as a stabilizing asset.