Good morning, Asia. Here’s what’s trending in the market:
Welcome to your morning briefing, a daily roundup of the latest stories and market analysis. For a deeper dive into the US market, refer to Coindesk’s Crypto Daybook Americas.
Bitcoin is currently trading above 101.5k as trading begins in Asia, seemingly unaffected by the recent tariff uncertainty from the Trump administration.
Semir Gabeljic, the capital formation director at Pythagoras Investments, emphasizes that traders are maintaining their focus on bullish trends, confident that Bitcoin could hit $120,000, thanks to ongoing corporate interest and lower volatility.
“The recent tariff hikes from the Trump administration have stirred some volatility,” Gabeljic mentioned in an email to Koindesk, noting that Bitcoin’s resilience is evident as it exhibits less fluctuation compared to other digital currencies.
He further highlighted that traders on Polymet have assigned a 69% probability that Bitcoin will reach at least $120,000 by the end of the year.
Flow Desk, a Paris-based market maker, shares this optimistic sentiment in a memo sent via Telegram, pointing out that the market is clearly waiting to break out of its long-term narrow trading range.
“There’s been a notable shift of resources from Bitcoin to altcoins, but Bitcoin’s fundamental strength remains transparent,” they added.
Flow Desk also observed some cautious activity in the market, reflected by a decrease in BTC’s funding rates on major exchanges like Binance. Nonetheless, increased borrowing on-chain suggests potential for an upcoming market breakout.
Support for the bullish Bitcoin narrative continues with ongoing corporate accumulation by the Treasury Ministries, which currently hold approximately 809,100 BTC valued close to $85 billion.
“Expectations for Bitcoin remain robust,” Gabeljic reiterated.
News Round Up
$Trump Token Drop: 9% Amid Feud and Investor Fears
The $Trump Memecoin saw a decline of 9.3% on Thursday, reflecting broader crypto market struggles, with the Coindesk20 index of major digital assets also falling by 5%.
The downturn was fueled by disputes regarding Trump’s ambitious “big beautiful bill” and its implications for the national debt, ignited by a heated exchange between Trump and Elon Musk, as previously reported.
The argument escalated quickly, with Musk retaliating by suggesting government contracts with his companies could be affected.
Pressure on the Memecoin increased after the recent Crypto Wallet launch, created in partnership with NFT Marketplace Magic Eden, unexpectedly went offline following the suspension of another Trump crypto venture.
In light of these events, Trump’s sons distanced themselves from the Memecoin, citing their involvement in a separate Ethereum-based project, World Liberty Financial. This internal friction only adds more uncertainty and weighs down the token’s price.
CRCL Experiences Huge Surge on Trading Debut
Shares of Circle (CRCL) skyrocketed by 167% on the first trading day, starting at $31 and peaking at $104 before closing at $83. This sharp spike brings to mind Coinbase’s volatile IPO in 2021, which started strong but quickly lost steam, raising questions about long-term stability.
The spike in Circle’s stock paralleled a slight uptick in Stablecoin market activity. The trading volume of Circle’s USDC is up by 22% in the last 24 hours, while Tether’s USDT volume has increased by 13%. Even with this optimistic debut, the coming weeks will reveal whether Circle’s enthusiasm for its infrastructure translates to consistent stock performance.
US Financial Sanctions Philippine Firm for $200 Million “Pork Shop” Crypto Fraud
The US Treasury Department’s Office of Foreign Assets Control (OFAC) has sanctioned the Philippine tech company Funnull Technology Inc. and its manager, Liu Lizhi.
OFAC has alleged that Funnull Technology provided digital infrastructure like IP addresses and domains utilized by cybercriminals to host numerous fraudulent websites aimed at conniving victims into crypto scams.
The “pig slaughter” scheme refers to the elaborate methods employed by fraudsters, who often use romantic appeals to groom their victims before convincing them to make significant investments. These sanctions are intended to prevent US individuals from engaging in business transactions with Funnull or Liu, ultimately aiming to curtail widespread cyber fraud and protect investors in the digital asset sphere.
Market Movements:
- BTC: Bitcoin dipped nearly 4% to test its support level at $10,000, before rebounding to over 101.5k.
- ETH: Ethereum also fell by 4%, failing to breach the $2,640 resistance level despite robust purchases and significant accumulation by top ETH whales exceeding $285 million.
- Gold: Gold rose above $3,363.58 in early Asian trading, influenced by US economic data and efforts to cool tensions between the US and China.
- Nikkei 225: The Asia-Pacific market opened higher, with Japan’s Nikkei 225 up by 0.14%, amidst positive discussions between US President and China’s Xi Jinping.
- S&P 500: Remained flat, complicated by the ongoing public spat between Trump and Musk, which added uncertainty to market sentiment.
