Good morning, Asia. This is what news is doing in the markets:
Welcome to Asia Morning Briefing, a daily summary of the main stories during the US hours and an overview of the movements and market analysis. To obtain a detailed description of the US markets, see Cryptokook from Coindesk America.
The price of Bitcoin remains close to the records, but the chain itself is calm. Glassnode data show that transaction rates have collapsed towards the minimum of the decade, even when BTC flirts with six figures.
In past cycles, Fee Spikes tracked the upward markets as merchants offer by blockspace. This year, the rate curve is stable, while the price increases, a clear sign that the demand of the chain is no longer promoting the market.
A new Galaxy Research report shows that medium daily rates have fallen more than 80% since April 2024, with up to 15% of the daily blocks that are now cleaned only 1 satoshi per Vbyte. Almost half of the recent blocks are not filled, indicating a weak demand of blockspace and an inactive Mempool.
This is a strong contrast to previous bull cycles, where price manifestations are translated into congestion and rates peaks.
The data confirms a structural change: the ETF spot and the custodians now have more than 1.3 million BTC, and the coins parked in those wrappers rarely touch the chain again.
At the same time, the retail activity that once clogged the Bitcoin block chain has migrated to Solana, where memecoras and NFT benefit from a cheaper and faster execution. The result, says Galaxy, is that the price of Bitcoin is being established by custody tickets, while the demand for the network network, once it is a proxy for the price movement, has slowed down.
For miners, this dynamic is particularly punishing. With half -award rewards at 3,125 BTC and rates that contribute less than 1% of block revenues in July, profitability is under tension. This stress is pressing the lists to diversify in the housing of AI and HPC.
Read more: Bitcoin Mining faces the ‘incredibly difficult’ market as power becomes the true currency
A report from the beginning of this year of Rittenhouse Research argues that the moving of Galaxy Digital out of mining could be the model for the sector.
This movement has been applauded by variable income markets. While BTC has dropped more than 3% in the year, the Bitcoin Coinshares Mining ETF has won almost 22%. Investors are rewarding companies that have inclined diversification instead of depending on block rewards.
The listed miners tell a similar story. Hive, Core Scientific and Terawulf reported the results of Q2 padded with the HPC and AI accommodation income.
Those without diversification, such as Bitdeer and Bitfufu, remain deeply exposed to the costs of electricity, the depreciation of the equipment and a rate market that Galaxy warns in its report is “anything but robust.”
The juxtaposition is revealing: Galaxy’s own investigation warns that Bitcoin Blockchain settlement is stagnating, while Galaxy’s general balance is repositioning for growth in AI data centers.
Ochain data makes the point: without blockspace organic demand, rates cannot finance security. And if the rates remain low, capital markets are painting a clear image that the best future yields in the mining sector can come from AI, not Bitcoin.
Market movements
BTC: Bitcoin quoted $ 113,286.95, a less than 1.79%, after briefly falling to a minimum of six weeks about $ 110,600, with the widest cryptographic market facing large liquidations and volatility.
Eth: Ether was negotiated at $ 4,779 as Jackson Hole’s comments from Jerome Powell increased the expectations of a September rate cut, with asset administrators that predict new maximums for Bitcoin and a break of ETH over $ 5,000 despite the risks of the adoption of the treasure and the volatility of equity.
Gold: The Gold closed to $ 3,371 after Powell’s dovison Hole’s comments increased the September rate probabilities.
Nikkei 225: Asia-Pacific’s actions rose on Monday, with Nikkei 225 from Japan 1.08%, after Powell pointed out possible Fed rate cuts in September during his Jackson Hole speech.
In another part of crypto
- Financing: Why raise a cryptographic VC fund is more difficult now, even in a bullish market (the block)
- Why Luca Netz will be ‘disappointed’ if Pudgy Penguins does not start within 2 years (decipher)
- KPMG says that the interest of investors in digital assets will conduct a strong second half for Canadian Fintechs (Coindesk)
