Asia Morning Briefing: BTC Stalls at 105K as Analyst Says Market Looks 'Overheated'

1 week ago

Good Morning, Asia. Here's what's making quality successful the markets:

Welcome to Asia Morning Briefing, a regular summary of apical stories during U.S. hours and an overview of marketplace moves and analysis. For a elaborate overview of U.S. markets, spot CoinDesk's Crypto Daybook Americas.

Bitcoin BTC is trading supra $105K arsenic Asia begins its concern week. The world's largest integer plus remained comparatively unchangeable implicit the weekend, with a 0.4% movement, and trading measurement was compressed.

While wide marketplace conditions stay bullish, a caller study from CryptoQuant suggests that definite metrics bespeak the BTC marketplace is “overheating.”

The study shows bitcoin request has climbed to 229,000 BTC implicit the past 30 days, approaching the December 2024 highest of 279,000 BTC. At the aforesaid time, whale-held balances person risen by 2.8 percent, a gait that often signals slowing accumulation.

These indicators suggest the existent rally, which pushed prices to a grounds $112,000, whitethorn beryllium nearing a short-term top.

The study highlights $120,000 arsenic the adjacent large absorption level, tied to the precocious set of the Traders’ On-chain Realized Price, wherever unrealized profits would deed 40 percent, a threshold that has historically marked section tops.

While CryptoQuant’s "Bull Score Index" remains beardown astatine 80, signaling continued bullish momentum, rising nett margins, and peaking request maturation suggest traders whitethorn look a play of consolidation earlier the adjacent limb higher.

News Roundup:

James Wynn Gets Liquidated, But Says He'll 'Run it All Back'

James Wynn, a trader renowned for his aggressive, high-leverage bets connected Hyperliquid, has been afloat liquidated, leaving him with conscionable $23 successful his relationship aft sustaining losses totaling much than $17 million, CoinDesk antecedently reported.

Wynn, who attracted important attraction with trades involving bitcoin, memecoins similar PEPE, and adjacent obscure tokens specified arsenic FARTCOIN, archetypal faced steep declines from a monolithic $1.25 cardinal agelong presumption connected BTC, resulting successful a nonaccomplishment exceeding $37 cardinal aft prices dipped beneath $105,000 amid geopolitical turmoil.

Throughout the volatile month, Wynn rapidly cycled done trades, concisely netting an unrealized summation of $85 cardinal earlier marketplace swings wiped him retired completely. An relationship associated with Wynn downplayed the melodramatic liquidation, defiantly stating connected X: "I'll tally it back, I ever do. And I'll bask doing it. I similar playing the game. I took a ample and calculated stake astatine making billions."

Brazil's Méliuz Shares Sink 8% After Announcing $78M Equity Raise to Buy Bitcoin

Brazilian fintech Méliuz plans to rise up to $78 cardinal done a nationalist equity offering, intending to allocate each proceeds to purchasing Bitcoin and positioning the cryptocurrency arsenic a superior strategical plus successful its treasury, CoinDesk antecedently reported.

However, Méliuz’s strategy hasn't impressed the marketplace yet, arsenic shares dropped much than 8% pursuing the announcement. The archetypal offering includes 17 cardinal communal shares, with the imaginable to grow up to 51 million, and investors volition person subscription warrants allowing aboriginal banal purchases astatine acceptable prices.

Known for its cashback and fiscal services level serving implicit 30 cardinal users, Méliuz presently holds 320.2 BTC, having antecedently committed 10% of its currency reserves to Bitcoin successful March. Trading for the subscription warrants is expected to commence connected June 16, with stock colony and warrant issuance finalized by June 18.

NYC Comptroller Rejects Mayor Adams' 'BitBond', Warns Deviating from Dollar Could Undermine City's Credit Reputation

New York City's Comptroller Brad Lander sharply criticized Mayor Eric Adams' program to contented municipal bonds backed by bitcoin, labeling the projected "BitBond" arsenic "legally dubious and fiscally irresponsible," CoinDesk antecedently reported.

Lander rejected the thought conscionable days aft Adams introduced it astatine a bitcoin league successful Las Vegas, emphasizing that cryptocurrency's instability makes it unsuitable to reliably money captious metropolis projects specified arsenic infrastructure and affordable housing.

Mayor Adams has actively promoted cryptocurrency initiatives since entering office, including converting his ain paychecks into integer assets and establishing a integer plus advisory council.

However, Comptroller Lander highlighted superior applicable concerns with the BitBond proposal, noting national taxation laws and metropolis fiscal regulations would marque the connection unworkable, and warned that deviating from the dollar-based municipal borrowing strategy could undermine capitalist assurance and New York City's recognition reputation.

Market Movements:

BTC: Bitcoin showed resilience, staging a V-shaped betterment betwixt $103,813.37 and $105,305.75 amid notable measurement spikes.
ETH: Ethereum formed a bullish reversal pattern, rebounding from beardown enactment astatine $2,472.84 to $2,527.53 amid high-volume buying momentum, according to CoinDesk's Market Insight Bot.
Gold: Gold climbed 0.6% to $3,311.66, arsenic traders weighed its caller retreat from grounds highs against ongoing capitalist and cardinal slope appetite driven by uncertainty implicit US tariffs and broader economical risks.
Nikkei 225: Japan's Nikkei 225 dropped 0.89% arsenic Asia-Pacific markets traded mixed pursuing Trump's announcement of accrued alloy tariffs.
S&P 500 Futures: Stock futures dipped Sunday to commencement June aft the S&P 500's strongest period since November 2023, amid uncertainty implicit President Trump's tariffs pursuing caller contradictory tribunal rulings.