Good Morning, Asia. Here’s a summary of the current markets.
Bitcoin is trading at approximately $110,300 as the business day kicks off in Hong Kong, with Ethereum (ETH) priced at $3,970. Data from CoinDesk indicates that the crypto market is relatively stable this week after a recent sharp correction that saw Bitcoin drop to $104,000. In a market analysis, Glassnode characterized this development as a “flush, not a failure,” suggesting that leverage has been reduced, protections acquired, and positions have been recalibrated.
The firm observed notable declines in futures open interest and funding rates, while ETF flows turned neutral. Furthermore, on-chain profit metrics indicate that traders are opting to realize losses instead of capitulating, which points to a defensive normalization rather than a structural breakdown.
Market maker Enflux has identified a similar trend in capital formation. In a communication to CoinDesk, Enflux referred to Blockchain.com’s anticipated U.S. SPAC listing with Cohen & Co. as a significant event for crypto exchanges re-entering the public markets.
Meanwhile, Tom Lee’s Bitmine has committed $800 million to acquire more ETH, a move interpreted as an “infrastructure-scale commitment” signaling that institutional investment continues to accrue quietly, even as retail speculation appears to decrease. Both Glassnode and Enflux concur that the market has entered a reset phase characterized by caution but supported by tangible capital engagement.
Glassnode’s data suggests that the speculative layer has been cleansed, while Enflux posits that long-term capital is subtly rebuilding the market’s foundations. The sustained strength of gold, trading above $4,000 an ounce, supports the notion that digital assets now coexist with traditional hedges, highlighting a shift towards diversification rather than complete withdrawal from traditional investments.
In terms of market movements:
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Bitcoin (BTC): Despite prevailing fears in the crypto market, the recent selloff has been described by Arca as a healthy reset rather than a collapse, pointing to increasing exchange volumes, better liquidity, and easing macroeconomic pressures as indicators of structural recovery.
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Ethereum (ETH): ETH has been on an upward trend, bolstered by Tom Lee’s purchases. However, analysts have raised concerns regarding its declining chain fees. Data from DeFiLlama reveals that in the past 24 hours, Ethereum generated lower fees than Solana and BNB.
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Gold: Gold prices surged 2.9% to reach a record $4,380.89 an ounce as investors capitalized on lower prices amid ongoing U.S.-China trade uncertainties, speculations of a Fed rate cut, and rising tensions regarding potential trade negotiations between Beijing and Washington.
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Nikkei 225: Japan’s Nikkei 225 index climbed over 1% to a record high of 49,739.76, buoyed by gains on Wall Street and positive sentiment ahead of a parliamentary vote expected to confirm Sanae Takaichi as Japan’s next prime minister.
In other crypto news, US issuer Ethena is looking to expand its team as it prepares to launch two new products, while Dogecoin firm House of Doge has acquired a controlling stake in an Italian soccer club. Additionally, the unfinished legislative agenda regarding cryptocurrency is facing challenges as CEOs prepare to meet with Democratic leadership.
