Good Morning, Asia. Here’s what’s shaping the markets today:
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. market movements, check out CoinDesk’s Crypto Daybook Americas.
Bitcoin is trading around $106,402, up nearly 0.9% as Asia kicks off its trading day. This slight rebound comes after a weekend dip driven by substantial outflows from spot Bitcoin ETFs and rising geopolitical tensions. Earlier, Bitcoin dropped about 2%, declining from $105,987 to $103,748 amid increased trading volume, influenced by over $616 million in ETF outflows. This marked the end of BlackRock’s iShares Bitcoin Trust’s 31-day inflow streak and was compounded by stalled U.S.-China trade negotiations.
Notably, analysts are increasingly observing Bitcoin’s unusual correlation with Japan’s 30-year government bond yields. Macro strategist Weston Nakamura points out that this link, stronger lately than Bitcoin’s traditional ties with U.S. stocks, signals a broader shift in global macro dynamics and Japan’s rising influence over cross-asset relationships. As investors navigate these complex macroeconomic signals, Bitcoin remains testing support levels near $104,300, reflecting ongoing market volatility and cautious sentiment.
Meanwhile, crypto faces a looming quantum threat. Rick Maeda of Presto Research warns that the industry is dangerously unprepared for the advancing risks posed by quantum computing. His recent report highlights the economic disincentives that hinder development of quantum-resistant blockchain tech, citing difficulties in monetizing such innovations. Maeda emphasizes that preparation must be incremental and proactive—waiting until the threat materializes could be too late.
He explains that current quantum systems only operate around 10 logical qubits with high error rates, far below the thousands needed to threaten elliptic curve cryptography (ECC). Recent advancements, like Google’s quantum processors, involve significant trade-offs in efficiency. While immediate panic isn’t warranted, Maeda urges industry stakeholders to undertake steady, incremental efforts to fortify crypto security against quantum attacks before it’s an urgent issue.
In corporate news, Meta shareholders overwhelmingly rejected a proposal to allocate part of its $72 billion cash reserve into Bitcoin—only 0.08% of nearly 5 billion votes supported the move. This initiative, proposed by Ethan Peck of Strive and backed by conservative groups, aimed to hedge inflation risks using Bitcoin as a treasury asset. Despite this setback, Meta continues exploring crypto-related projects, including stablecoin-based payment solutions, even after scaling back some metaverse ambitions. The company’s shares rose 3.5% Monday, closing at $670.09.
Industry advocates are also urging U.S. senators to stay focused on the stablecoin legislation. The Blockchain Association and Crypto Council for Innovation emphasize the importance of passing the GENIUS Act, which regulates stablecoins like USDT and USDC, amidst attempts to attach unrelated amendments such as the Credit Card Competition Act. With bipartisan support, the bill has a 60-65% chance of passing this year, marking a significant milestone for crypto regulation if successful.
Market movements show Bitcoin up 0.9% at $106,402; Ethereum gaining 3% to $2,539 amid strong institutional inflows; gold rising over 2% to $3,371 as the dollar weakens and geopolitical tensions escalate. Japan’s Nikkei 225 edged higher by 0.36%, and U.S. stocks also gained, with the S&P 500 up 0.4%, buoyed by resilient markets despite global trade worries.
Stay tuned for more updates on crypto, stocks, commodities, and geopolitical developments shaping today’s markets.
