Wakey wakey, Asia! Time to dive into the latest crypto happenings: Bitcoin is doing a little dance just below $110,000 after another failed bounce, feeling a bit down about a 7% dip from its high of over $117,000 post-Powell’s dovish speech at Jackson Hole. Meanwhile, Ethereum, who briefly flirted with $4,900 before doing a quick 180, is now hanging out above $4,300 but showing signs of being a tad tired after weeks of being the star performer. The bull run seems to be running out of steam, with market watchers pointing to thinning liquidity, ETF outflows, and some shaky onchain activity mixing it up with whales making a splash in ETH and retail longs getting the boot. Beneath the surface, big players like sovereign funds and institutions are quietly diving into the pool of volatility, creating a stark contrast between short-term uncertainty and long-term strategic buying. Glassnode’s latest Market Pulse is sounding a cautionary note, with the euphoria fading and things getting a bit fragile: spot momentum is sliding towards oversold territory, ETF flows are heading towards a $1 billion outflow, and profits are dwindling back to square one. QCP Capital points to a dramatic weekend crash caused by an early BTC holder dumping 24,000 coins into the market, triggering $500 million in liquidations. The sale highlighted how fragile the market has become, with ETFs bleeding $1.2 billion while whales shift focus to ETH, pushing the ETH/BTC cross above 0.04. Meanwhile, Enflux from Singapore chimes in, saying not all flows are created equal. While retail traders are feeling the squeeze, a massive $2.55 billion ETH stake and the UAE royal family’s $700 million BTC investment seem more like serious moves by sovereign and institutional players. In a nutshell, despite weakening onchain activity and fee volumes, savvy investors are using the volatility to their advantage, accumulating in a stealthy manner while retail traders face the music. As transaction fees on the Bitcoin blockchain drop to lows not seen in years and blocks clear without congestion, the market is left on thin ice. Miners, already feeling the pinch from halved rewards, are bracing for a bumpy ride ahead, with September historically being Bitcoin’s least favorite month. In the wider market scene, Bitcoin’s brief rebound hit a roadblock at $113,000 before slipping to a seven-week low near $109,700, down 2.7% on the day and 7% from its recent peak. Altcoins took a hit as well, with ETH dropping nearly 8% below $4,400 and other favorites like SOL, DOGE, ADA, and LINK also sliding, triggering $700 million in liquidations, mostly from long positions. Gold is holding steady above $3,350, thanks to Powell’s hints at rate cuts and global tensions keeping the safe-haven demand alive, despite the looming challenges of dollar strength and upcoming U.S. economic data. Over in Asia, stocks took a dip on Tuesday, with Japan’s Nikkei 225 and Topix down 0.54%, as investors chew on Trump’s China remarks and trade talks between the U.S. and South Korea. In the U.S., stocks pulled back on Monday after a rate-cut rally, with the S&P 500 shedding 0.4% as all eyes turn to Nvidia’s upcoming earnings. And in the world of crypto, exciting tidbits include Grayscale’s move to turn its Avalanche Trust into an ETF, Japan’s Finance Minister giving crypto assets a nod for diversified portfolios, and insights on crypto’s new chapter from industry experts Tom Schmidt and Alok Vasudev.
Asia Morning Briefing: BTC Fragility and ETH Rotation Signal Market Bracing for Consolidation Without New Liquidity
