Overview
Asia Morning Briefing delivers a concise summary of key market developments during U.S. trading hours. This edition focuses on Ethereum’s mounting strength and the shifting liquidity landscape within the crypto sector.
Ethereum Outperformance
Institutional flows into Ethereum have built a robust support floor, driving the ETH/BTC ratio back from localized lows. Polymarket data indicates that traders now assign a 26% probability to an ETH price of $5,000 within the month. This marks a significant uptick from 16% just days earlier, reflecting heightened conviction among professional investors. Liquidity rotation has also benefited select altcoins, with CRO gaining renewed interest following a high-profile treasury announcement.
Bitcoin Momentum Fades
Bitcoin has recorded $940 million in liquidations as on-chain activity weakened. Despite brief rebounds fueled by macro headlines, BTC trading volumes and network metrics point to a cooling of bullish sentiment. The divergence between Bitcoin and Ethereum performance underscores a potential rebalancing of portfolio allocations as market participants seek higher yields and diversification.
Macro Data Ahead
Upcoming U.S. PCE inflation and employment figures are expected to challenge current price levels across financial assets. Traders will monitor how fresh data influences policy rate expectations and broader risk-on flows. In this context, Ethereum’s robust fundamentals and growing DeFi activity may provide a cushion against sudden shifts in sentiment.
Key Quotes
- “Ethereum’s recent strength is mainly showcased by the level of flows into it, where a major liquidity floor has been built by institutions,” said March Zheng, General Partner at Bizantine Capital.
- “Markets react to headlines, but longer-term value is driven by fundamentals,” noted Gracie Lin, CEO of OKX Singapore.
Market Movements
- BTC: Trading at $111,733.63, on-chain metrics signal potential consolidation.
- ETH: Trading at $4,598.67, supported by institutional inflows and DeFi activity.
- Gold: Holding above $3,400 amid rate-cut expectations.
- Equities: Asian indices mixed following U.S. advance.
Outlook
Ethereum’s central role in liquidity reallocation continues to attract investor focus. Pending macro releases will determine whether current momentum extends or gives way to broader market volatility.
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