Good morning Asia. This is what is making news in the markets:
Welcome to Asia Morning Briefing, a daily summary of top news during US time and an overview of market movements and analysis. For a detailed overview of the US markets, see CoinDesk’s Crypto Daybook Americas.
The largest deleveraging in cryptocurrency history has left traders cautious but with long-term capital intact, analysts say in recent reports.
Despite the short-term market chaos caused by the largest cryptocurrency liquidation event in history, both Glassnode and CryptoQuant argue that beneath the surface, liquidity and structural demand remained strong.
CryptoQuant wrote in a recent report that while short-term momentum has weakened, large holders continue to accumulate and fiat liquidity continues to increase. USDT supply has grown by nearly $15 billion in 60 days, the fastest pace since January, while US spot bitcoin ETF inflows have risen to $3.5 billion.
Glassnode also cites this data in its weekly market pulse, interpreting this trend as evidence that capital remains within the system even after speculative risk has been eliminated.
Where the two analyzes diverge most clearly is in tone and timing.
Glassnode describes the liquidation as a structural purge that eliminated speculative excess and forced traders to revert to defensive positioning. Their data shows that funding rates were cut in half, perpetual countervailing duties turned negative, and options traders paid higher premiums to protect themselves against downsides.
The company sees this as a market in recovery mode, digesting losses and rebuilding confidence rather than preparing for an immediate rebound.
CryptoQuant, on the other hand, interprets the same market from a more constructive perspective.
It highlights $115,000, the price realized in the merchant chain, as the level to take into account to detect renewed strength. A sustained move above that threshold, the company argues, could usher in a new bullish phase supported by expanding stablecoin liquidity and continued whale accumulation.
The difference in outlook reflects a broader split in sentiment across the market: a cautious reset versus a potential turning point.
Both companies paint an emerging picture of a market transitioning from excess to balance. Capital continues to flow through ETFs and stablecoins, but positioning is defensive and confidence needs time to rebuild.
Whether bitcoin’s next move is a bounce or a prolonged consolidation will depend less on leverage and more on how quickly that structural demand turns into new risk-taking.
Market movement
btc: Bitcoin fell to around $112,700 after an initial drop below $110,000. Trump’s profit-taking and renewed trade threats pressured risk assets, although prices stabilized after Fed Chair Jerome Powell signaled that the central bank is nearing the end of its tightening cycle.
ETH: ETH is trading at $4,101, down 3.7%, as open interest fell to its lowest since May and profit-taking accelerated following a rejection near $4,270, although CME traders and ETF inflows indicate institutional support remains strong.
Gold: BlackRock’s Evy Hambro said gold could rise well beyond $4,200 as paper currency appreciates against real assets, while Bank of America expects it to reach $5,000 and silver $65 by 2026, with both institutions citing fiscal deficits, investor demand and structural changes that favor real assets despite near-term consolidation risks.
Nikkei 225: Asia-Pacific markets opened higher on Wednesday, with Japan’s Nikkei 225 rising 0.3%, even as renewed trade tensions between the United States and China and threats of “retaliation” from President Trump kept volatility elevated.
Elsewhere in Crypto:
- Binance Claims It “Does Not Profit” From Its Token Listing Process, Calls Allegations “False and Defamatory” (The Block)
- Laura Loomer fuels speculation about Trump’s pardon of the SBF: Does it have anything to do with it? (Decipher)
- Celsius Downgrade Secures $300 Million Tether, Say GXD Labs and VanEck (CoinDesk)
