Bitcoin (BTC) steadied near $110,300 Tuesday morning in Hong Kong as Asian markets began trading. Ethereum (ETH) also maintained momentum, trading around $3,970 according to CoinDesk data, reflecting a relatively calm market environment after last week’s significant volatility.
Last week, Bitcoin experienced a swift correction, dropping as low as $104,000. Market analysts, including Glassnode, have characterized this movement not as a market collapse but as a necessary “flush” that unwound excessive leverage. This process helped clean up positions, reduce risk, and bring stability back to the crypto ecosystem.
Glassnode’s recent report highlighted several indicators supporting this view: futures open interest and funding rates declined sharply, exchange-traded fund (ETF) flows turned neutral, and on-chain profitability metrics pointed to traders realizing losses without full capitulation. This suggests a phase of defensive normalization rather than a structural breakdown in the market.
Supporting this perspective, market maker Enflux noted a “reset phase” defined by increased caution but also real capital engagement. Enflux referenced Blockchain.com’s upcoming SPAC merger with Cohen & Co. as a significant moment for crypto exchanges reentering public markets, signaling renewed institutional interest.
Additionally, Bitmine, under the guidance of Tom Lee, committed $800 million to purchasing more Ethereum. This sizable allocation was interpreted by analysts as a strong, long-term infrastructure commitment from institutional investors, even as retail-driven speculation appears to soften.
Both firms agree the crypto market is transitioning from speculative frenzy to a foundation built on more sustainable capital. Enflux also pointed to gold’s recent surge above $4,000 per ounce as indicative of digital assets increasingly complementing traditional hedges rather than competing against them.
Market Movements
Despite prevailing bearish sentiment revealed by deep “fear” index readings, Arca described Bitcoin’s recent selloff as a healthy market reset rather than a structural failure. It cited rising exchange volumes, improving liquidity, and easing macroeconomic pressures as encouraging signs of recovery.
Ethereum’s rally continued in part due to renewed buying pressure such as Bitmine’s commitment. However, analysts noted a concerning decrease in Ethereum network fees. According to DeFiLlama data, Ethereum’s chain fees over the past 24 hours fell below those of competing blockchains like Solana and Binance Smart Chain (BNB), raising questions about network activity.
On the traditional asset front, gold saw a notable increase of 2.9%, reaching a new record of $4,380.89 an ounce. The precious metal gained amid geopolitical tensions related to U.S.-China trade relations, expectations of a potential Federal Reserve interest rate cut, and uncertainty over a trade agreement between the two nations.
In equities, Japan’s Nikkei 225 rose more than 1% to reach a record high of 49,739.76. Positive movement was influenced by strong gains on Wall Street and confidence ahead of Japan’s parliamentary vote, expected to confirm Sanae Takaichi as the country’s next prime minister.
Other Crypto Developments
USDe stablecoin issuer Ethena is expanding its team as it prepares to launch two new products, according to The Block. Meanwhile, House of Doge, the firm behind Dogecoin, acquired a controlling stake in an Italian football club, marking a novel strategy in crypto-supported sports engagement (Decrypt).
Meanwhile, crypto industry leaders are coordinating efforts to advance unfinished regulatory measures in Washington, D.C. A forthcoming meeting between crypto CEOs and Democratic lawmakers aims to address legislative challenges, reflecting ongoing uncertainties about digital asset policy (CoinDesk).