Good Morning, Asia. Here’s the latest market news:
Welcome to Asia Morning Briefing, where we highlight top stories from the U.S. and provide market analysis. For comprehensive U.S. market insights, check out CoinDesk’s Crypto Daybook Americas.
As trading kicks off in Hong Kong, ETH is trading above $4600, marking a 3% decline from the previous day.
While ETH has seen significant gains of nearly 16% over the past week and 45% in the last month, there are indications of potential short-term cooling, as highlighted by CryptoQuant’s recent analysis.
Data suggests an increase in daily ETH inflows compared to Bitcoin, signaling some holders might be looking to cash out profits. The MVRV ratio for ETH against BTC has climbed from 0.4 in May to 0.8, nearing levels historically linked to market corrections.
Market experts are also observing caution. FlowDesk reported a surge of $1 billion in ETH ETF inflows on Monday, paired with increased call overwriting in ETH options, indicating a cap on upside potential.
QCP contextualizes ETH’s rally against a backdrop of softer headline CPI and geopolitical developments, pointing to upcoming events like the Jackson Hole symposium as potential market influencers.
Market dynamics, including ETF demand and institutional interest, continue to support ETH’s rally, but the market is at a juncture where factors like stretched positions and macroeconomic risks could challenge its momentum.
Market Updates
BTC: Bitcoin retreated over 3% from recent highs following U.S. inflation data and the Treasury’s decision against expanding Bitcoin reserves.
ETH: ETH is down 3.3% amid profit-taking pressure after a strong rally.
Gold: Gold dipped 0.62% to $3,336.6 due to robust U.S. inflation and job data boosting the dollar and yields.
Nikkei 225: Japan’s Nikkei 225 started positively after Q2 growth exceeded expectations, though concerns over U.S. tariffs loom.
S&P 500: U.S. stocks paused as a spike in PPI tempered hopes for a significant rate cut in September.
Other Crypto Highlights:
- U.S. Blacklists Crypto Network Linked to Ruble-Backed Stablecoin and Garantex Exchange Closure (CoinDesk)
- Wall Street Veteran Criticizes Strategy Drawing Parallels Between Crypto and Apple, NVIDIA (Decrypt)
- Crypto Casino CEO Faces Charges for Allegedly Misusing Investors’ Funds (Decrypt)
