Good Morning, Asia. Here’s what’s shaping up in the markets today:
Welcome to the Asia Morning Briefing, your daily snapshot of the biggest stories during U.S. trading hours, along with market movements and expert analysis. For a comprehensive update on U.S. markets, check out CoinDesk’s Crypto Daybook Americas.
Bitcoin is trading above $105,000 as Asia kicks off its business week. Over the weekend, Bitcoin stayed relatively steady with only a 0.4% move, and trading volume remained subdued. While the overall sentiment remains bullish, a new report from CryptoQuant warns that some metrics suggest the BTC market might be “overheating.”
Demand for Bitcoin has surged to 229,000 BTC over the past month, nearing the December 2024 peak of 279,000 BTC. Meanwhile, whale-held balances have increased by 2.8%, a sign that accumulation might be slowing. These indicators point to the possibility that Bitcoin’s recent rally—spurred by a record high of $112,000—could be approaching a short-term peak.
CryptoQuant’s analysis highlights $120,000 as the next major resistance level, aligning with the upper boundary of the Traders’ On-chain Realized Price, where unrealized profits would hit 40%. Historically, this profit threshold has marked local tops. Despite CryptoQuant’s “Bull Score Index” still strong at 80, signaling ongoing bullish momentum, rising profit margins and demand signals suggest traders might enter a consolidation phase before the next upward move.
Market Highlights:
– Bitcoin remains resilient, bouncing between approximately $103,813 and $105,305 amid volume spikes.
– Ethereum forms a bullish reversal, rebounding from support at around $2,472 to $2,527 on high-volume buying.
– Gold gains 0.6%, reaching about $3,311 as investors evaluate recent dips and ongoing demand amid economic uncertainties.
– Japan’s Nikkei 225 drops nearly 0.9% as Asia-Pacific markets react to increased steel tariffs announced by Trump.
– U.S. stock futures slip as the S&P 500’s best month since November 2023 wraps up, amid tariff-related uncertainties and mixed court rulings.
In crypto news:
Trader James Wynn faced a complete liquidation, ending up with just $23 in his account after losing over $17 million. Wynn’s aggressive bets involved Bitcoin, memecoins like PEPE, and niche tokens such as FARTCOIN. His massive $1.25 billion long position on Bitcoin resulted in steep losses below $105,000 amid geopolitical turmoil. Despite the blow, Wynn remains optimistic, stating on social media, “I’ll run it back, I always do. I like playing the game. I took a large and calculated bet at making billions.”
Meanwhile, Brazilian fintech Méliuz has announced plans to raise up to $78 million through a public share offering to buy Bitcoin, aiming to position crypto as a key asset in its treasury. However, market response has been lukewarm, with shares falling over 8% following the announcement. The company holds 320.2 BTC and previously allocated 10% of its cash reserves to Bitcoin.
In governmental news, New York City’s Comptroller Brad Lander has publicly rejected Mayor Eric Adams’ proposed “BitBond,” a municipal bond backed by Bitcoin. Lander describes the plan as “legally dubious and fiscally irresponsible,” citing cryptocurrency’s volatility and the challenges it poses to funding vital city projects like infrastructure and affordable housing. He warned that moving away from traditional dollar-based bonds could damage investor confidence and the city’s credit standing.
Market movements recap:
– Bitcoin shows resilience with a V-shaped recovery around $104,000.
– Ethereum bounces back from support at $2,472.
– Gold climbs to approximately $3,312 amid economic jitters.
– Asian markets are mixed, with Japan’s Nikkei down nearly 0.9%.
– U.S. futures dip following a strong previous month for the S&P 500.
Stay tuned for more updates as markets evolve.
