Good morning, Asia. Here’s what’s making news in the market:
Welcome to Asia Morning Briefing, your daily snapshot of key news from the US and an update on market activity and analysis.
Bitcoin is currently around $87,000 in early trading in Hong Kong, reflecting a hesitant market grappling with internal supply issues. Meanwhile, gold’s rise past $5,000 seems more indicative of a significant shift rather than just a spike.
On-chain metrics imply that this trend highlights structural factors within the market, beyond mere sentiment.
CryptoQuant reported that, for the first time since October 2023, Bitcoin holders are selling at a loss. This shift suggests that long-term investors are stepping back while new entrants are moving in, which is often a sign of markets preparing for consolidation rather than a fast-paced surge.
Glassnode notes that the market faces supply constraints, repeatedly hitting resistance when sellers emerge near the buying prices of recent buyers.
Options and prediction markets back this view. While gold’s resilience is gaining traction, anticipations for an imminent Bitcoin rally are dwindling.
Glassnode points out that Bitcoin’s price is still stalled beneath the critical levels of short-term holders around $98,000, with a significant amount of supply lingering above $100,000. The presence of sellers at these higher prices hampers any chances of achieving a notable rise above $100,000 soon.
Moreover, the current bullish environment has prompted breakeven sellers and those who bought during the highs of 2025 to exit to avoid losses, heightening resistance and keeping potential gains limited.
Market mechanics seem to support this analysis.
Futures trading volumes are low, leverage usage is restricted, and the latest price movements have unfolded amid thin liquidity rather than through robust participation.
Traders are optimistic about gold maintaining its value above $5,500 until mid-year, while they appear to expect Bitcoin to continue consolidating before it can rally again.
Currently, gold is buffering against macroeconomic pressures, although Bitcoin is caught in a process dictated by its internal supply rather than reacting to external events.
Market Movements
Bitcoin: Trading around $87,000, the rally is at risk due to overhead supply and limited participation, making it hard to build momentum.
Ethereum: Ether is lagging behind Bitcoin, with price shifts indicating weak demand, reduced activity in derivatives, and minimal signs of investors returning to higher-risk crypto assets.
Gold: Gold has surged to over $5,000 an ounce as investors gravitate towards it, driven by escalating geopolitical tensions, ongoing central bank purchases, and a declining US dollar, reinforcing its status as a long-term safeguard against global uncertainties.
Nikkei 225: Japan’s Nikkei index dipped as markets in the Asia-Pacific region exhibited mixed performance amid growing geopolitical concerns, coupled with a stronger yen that pressured Japanese stocks while other regional indices fluctuated.
Elsewhere for Cryptocurrencies
- America’s significant virtual currency legislation is making progress. Here’s its impact on everyday users.
- The Ethereum Foundation has established a post-quantum security team and introduced $1 million in research grants.
