Good morning from Asia, where Bitcoin remains anchored by strong structural demand following the largest-ever cryptocurrency liquidation event totaling $20 billion. Despite short-term turbulence, recent reports from analytics firms highlight that steady capital inflows and strategic accumulation by large holders continue to support the market’s underlying strength.
The unprecedented liquidation wiped out excessive leverage across crypto markets, prompting many traders to adopt cautious positions. Yet, firms like Glassnode and CryptoQuant emphasize that fundamental liquidity and demand have remained resilient beneath the volatile surface.
According to CryptoQuant’s latest analysis, short-term market momentum has cooled down, but significant buying activity among whales endures. They note that the supply of Tether (USDT)—a key stablecoin fueling crypto investments—has surged by nearly $15 billion over the past 60 days, marking the fastest growth since January. Additionally, inflows into U.S. spot Bitcoin ETFs have reached $3.5 billion, signaling ongoing institutional interest.
Glassnode’s weekly market pulse aligns with this perspective, suggesting that despite the purge of speculative risk, capital remains firmly within the ecosystem. This retention of funds indicates investors are repositioning their portfolios for longer-term prospects rather than exiting the market altogether.
However, the two firms diverge in their tone and interpretation of present market dynamics. Glassnode characterizes the recent sell-off as a necessary structural correction that eliminated excessive risk-taking and nudged traders into more defensive stances. Their data points to halved funding rates, a shift to negative cumulative volume delta (CVD) in perpetual futures, and increased option premiums for downside protection. This view portrays the market in a healing phase, focused on loss recovery and confidence rebuilding rather than immediate upward movement.
Conversely, CryptoQuant offers a more optimistic outlook, highlighting the $115,000 on-chain realized price for Bitcoin as a key threshold. Should prices sustain above this level, CryptoQuant suggests a new bullish trend could emerge, buoyed by expanding stablecoin liquidity and ongoing accumulation by major holders. This optimistic scenario hinges on stable capital flow transforming into renewed risk appetite.
Overall, both analyses depict a market transitioning from extremes to balance. While fresh inflows into ETFs and stablecoins reflect continued investor engagement, prevailing cautious positioning suggests that renewed momentum depends on the pace at which structural demand encourages active market participation.
Market Snapshot:
Bitcoin (BTC) recently dropped to approximately $112,700 after falling below $110,000 amid profit-taking and lingering concerns over U.S. political risks. Prices found some support following Federal Reserve Chair Jerome Powell’s remarks that the tightening cycle is approaching its end.
Ethereum (ETH) traded near $4,101, down 3.7%, as open interest declined to levels last seen in May and profit-taking increased after failing to surpass resistance around $4,270. Nevertheless, institutional backing appears steady, reinforced by CME futures activity and ETF inflows.
Gold continues to attract attention, with BlackRock’s Evy Hambro predicting prices could rise significantly beyond $4,200 amid shifts favoring real assets. Bank of America projects gold reaching $5,000 and silver hitting $65 by 2026, supported by factors including fiscal deficits and structural demand despite potential short-term market adjustments.
Asia-Pacific equity markets opened higher Wednesday, with Japan’s Nikkei 225 advancing 0.3%, even as trade tensions between the U.S. and China and threats of new tariffs maintain elevated volatility.
Additional headlines in crypto include Binance’s denial of profiting from its token listing process, dismissing such claims as “false and defamatory,” as reported by The Block. Meanwhile, speculation circulates around a potential Trump pardon involving figures connected to Sam Bankman-Fried, according to Decrypt. In other developments, GXD Labs and VanEck confirm a $300 million infusion from Tether to aid the Celsius wind-down process, per CoinDesk.
