Good morning, Asia! Here’s your latest market update: Welcome to the Asia Morning Briefing, your daily snapshot of the top stories during U.S. hours, along with market insights and analysis. For a comprehensive look at U.S. markets, check out CoinDesk’s Crypto Daybook Americas.
As Asian markets open, all major cryptocurrencies are experiencing declines amid heightened geopolitical tensions sparked by an Israeli attack on Iran. Early Friday Hong Kong time, Israel’s military launched multiple airstrikes targeting Iranian nuclear facilities, causing sharp drops in cryptocurrency prices. Despite this recent turbulence, Ethereum (ETH) has still gained nearly 40% over the past three months, outpacing both Bitcoin and the CoinDesk 20 index according to CoinMarketCap.
Market watchers are closely tracking investor risk appetite. ETH’s rally might be driven not just by recent infrastructure upgrades but also as a barometer for broader willingness to invest in altcoins. Ethereum’s recent outperformance relative to Bitcoin is particularly noteworthy because ETH often serves as an early indicator for capital flows into the broader altcoin ecosystem. Charmaine Tam, Head of OTC at Hex Trust, noted that as investors grow more comfortable exploring beyond Bitcoin, altcoins with compelling narratives and strong liquidity tend to benefit.
The surge in ETH’s market share—from around 7% to nearly 10%—coincides with a dip in Bitcoin’s dominance, which has fallen by 2 to 3 percentage points from recent peaks. This divergence suggests traders are shifting focus away from Bitcoin ETFs and monetary hedging narratives, turning instead toward sectors like decentralized finance (DeFi), modular infrastructure, and decentralized AI. On-chain data, including total value locked (TVL), supports this trend, with assets like Pendle, Bittensor, and Hyperliquid experiencing strong inflows. Meanwhile, Ethereum Layer 2 activity continues to rise.
Institutional interest remains a key driver of Ethereum’s strength. Since mid-May, spot ETH ETFs have attracted over $1.25 billion, reinforcing confidence in its role as a liquidity hub for emerging ecosystems. As long as institutional demand stays robust and ETH maintains its leadership position, the foundation for a sustained altcoin rally appears solid. We’ll keep an eye on whether this momentum has staying power.
In regulatory news, Singapore’s Monetary Authority (MAS) has finally enforced its long-anticipated offshore exchange ban. Last week, MAS confirmed that digital token service providers (DTSPs) serving only foreign clients must obtain licenses starting June 30. As a result, major exchanges like Bitget, Bybit, and WazirX are shutting down their operations in Singapore. This move was foreshadowed earlier this year, following the 2022 Financial Services and Markets Act, which clarified that companies offering crypto services to international clients are subject to Singaporean regulation—even if they have no local customers.
The crackdown aims to prevent regulatory arbitrage, ensuring that any entity wishing to use Singapore’s reputable name must fully comply with its oversight. The move marks a broader global trend toward tighter crypto regulation, especially in the wake of high-profile failures like Three Arrows Capital and Terraform Labs, both of which had minimal local presence despite being registered in Singapore.
On the technological front, Quranium has introduced QSafe Wallet, a quantum-secure crypto wallet designed to withstand the emerging threat of quantum computing. Built with post-quantum encryption algorithms approved by the U.S. National Institute of Standards and Technology (NIST), QSafe supports Bitcoin, Solana, Ethereum-compatible chains, and Quranium’s native blockchain. Unlike traditional wallets that rely on ECDSA and SHA-256, QSafe encrypts backups and signs transactions using quantum-resistant methods, future-proofing digital assets against potential quantum attacks. Experts estimate that breaking current cryptographic standards would require quantum systems far beyond today’s capabilities, but development is accelerating. Quranium emphasizes that proactive security measures are crucial as quantum computing advances.
Market movements today reflect ongoing geopolitical tensions. Bitcoin (BTC) has dropped 4.7%, trading around $103,300 amid concerns following Israel’s strike on Iran’s nuclear sites. Ethereum (ETH) remains under pressure within a downward channel, falling to approximately $2,694 despite persistent institutional inflows, with U.S. spot ETFs recording 18 consecutive days of inflows totaling over $240 million as of June 11.
Meanwhile, gold surged over 3% to $3,426.95, reaching a one-week high amid Middle East tensions and softer U.S. economic data, fueling expectations of potential Federal Reserve rate cuts. In equity markets, Asia-Pacific indices declined sharply: Japan’s Nikkei 225 fell 1.28%, and the Topix lost 1.22%, influenced by the geopolitical developments. Conversely, the S&P 500 climbed 0.38%, buoyed by Oracle’s robust earnings and optimistic cloud growth outlook boosting tech shares.
Stay tuned for more updates as markets react to these evolving global events.
