Asia Morning Briefing: Bitcoin Holds Above $114K as Whales Absorb Supply and Shorts Rebalance

Bitcoin is currently holding above $114,000, a rise fueled by whale accumulation and short covering rather than widespread demand. Since mid-October, approximately 62,000 BTC have exited long-term wallets, indicating a notable decline in illiquid supply, which can create selling pressure if new demand isn't present. However, large holders have actively accumulated Bitcoin during this period. The leverage in derivatives markets remains balanced, with a record of $413 million in liquidations mostly from short positions, showcasing a moderate cleanse rather than a panic-driven sell-off. As a result, Bitcoin's price is expected to oscillate between $113,000 and $116,000 until fresh catalysts materialize, particularly as market sentiments also improve, as seen with Japan's Nikkei 225 reaching 50,000, buoyed by optimistic U.S.-China trade talks and a thriving domestic demand expansion. Meanwhile, Ether outperformed Bitcoin, seeing a price increase driven by market momentum rather than significant inflows.

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