Good morning, Asia. Here’s what’s making news in the market:
Welcome to the Asia Morning Briefing. We’re here to provide a daily summary of major news from the US, along with insights on market movements and analysis.
Bitcoin seems to be entering a weaker market phase, as the strong buying activity seen at the start of the year is fading, creating a defensive atmosphere.
A recent note from CryptoQuant indicates that the fundamental demand has decreased. They note a slowdown in ETF accumulation, a drop in Treasury buying, and strategy purchases have hit some of the lowest points this year.
This doesn’t spell an immediate collapse, but CryptoQuant suggests that a bull market will likely struggle to rise above the 365-day moving average until a new demand wave occurs, which means potential gains are becoming more limited.
For traders, the path to $85,000 seems possible, but optimism is somewhat lacking.
Glassnode added that short-term investors are facing losses at the highest rate we’ve seen since the FTX period. Also, ETF inflows are negative, and the derivatives market has shifted to a risk-averse stance, with options traders mainly opting for puts while implied volatility is spiking.
Given this backdrop, Glassnode is looking at cost thresholds for active investors around $88,600 as the next significant test. If the price continues to dip below this, it could mean these investors will start facing losses for the first time this cycle, suggesting a prevailing bearish momentum. The next support level is roughly $82,000, where a slight bearish phase might evolve into a more entrenched bear market, reminiscent of what we saw in 2022 and 2023.
The weeks ahead will be telling—will buyers regain their confidence, or will we see support slip away, deepening the economic downturn?
Market Movements
Bitcoin: Currently, Bitcoin is trading around $92,000 after dipping below $90,000 earlier this week, creating some tension in the search for support.
Ethereum: Ether is hovering around $3,038, having declined slightly as it continues to mirror Bitcoin’s defensive trend.
Gold: Gold is trading at about $4,067, after reaching an intraday high of $4,132 as market risk aversion grows.
Nikkei 225: In Asia-Pacific markets, there was a rise on Thursday, driven by Nvidia’s strong earnings, which boosted semiconductor stocks, resulting in a 3.7% increase in the Nikkei Stock Average.
Elsewhere in cryptocurrencies:
- Bill Hill, co-founder of Samourai Wallet, has been sentenced to four years in prison for unauthorized money transfers.
- New Hampshire has announced $100 million in municipal bonds backed by Bitcoin.
- A bullish trend is anticipated for profits in the third quarter, fueled by the addition of options and US spot trading.
