Asia Morning Briefing: Bitcoin Hovers Below $110K; Institutional Ethereum Staking Gains Momentum
Good morning, Asia. Here’s what’s moving markets:
Bitcoin Slides Below $110K as Signs of Fatigue Surface
Bitcoin is trading just under $110,000 in early Asia hours, down modestly after a weekend breakout. The move comes amid fading momentum and renewed uncertainty, challenging the prevailing narrative of summer stagnation.
Analysts at QCP Capital noted in a Telegram update that implied volatility is at year-long lows and BTC had been “stuck in a tight range.” Without a convincing breakout, they said, “a clean move above $110K or below $100K” would be needed to reawaken broader market participation.
While Bitcoin rallied 3.26% over the weekend—from $105,393 to $108,801—on volume 2.5 times the 24-hour average, the gains may be losing steam. The breakout above $106,500 established support at $107,600 and briefly pushed BTC above $110,000 on Monday, peaking at $110,169.
This strength comes against a tense macroeconomic backdrop. US-China trade talks in London and a looming $22B U.S. Treasury bond auction later this week are injecting uncertainty, although recent headlines have resulted in short-lived reactions.
QCP cautioned that without a fresh narrative or macro trigger, Bitcoin’s latest breakout may be difficult to sustain. ETF inflows have tapered, perpetual open interest is softening, and traders are showing signs of caution.
Ethereum: Institutional Staking Could Fuel the Next Leg Up
While Ethereum has faced criticism over decentralization concerns, institutional infrastructure improvements and protocol upgrades are quietly reshaping its trajectory.
Mara Schmiedt, CEO of institutional staking platform Alluvial, told CoinDesk that Ethereum’s decentralization metrics have significantly improved—making it increasingly attractive to institutional investors.
“There’s a massive shift underway,” she said. “Institutions are now actively paying for decentralization because it serves their long-term security interests.”
Alluvial’s Liquid Collective has already staked $492 million in ETH—small relative to Ethereum’s total $93 billion staked, but notable for being almost entirely institutional capital.
Central to this transition is Ethereum’s recent Pectra upgrade, which introduces Execution Layer-triggerable withdrawals. This allows large players to redeem staked ETH with T+1 efficiency, aligning with institutional redemption cycles and ETF structures.
Schmiedt believes this underappreciated technical advancement could unlock the next phase of ETH adoption: “We’ll see far more ETH in institutional portfolios moving forward.”
Quick Hits
🔹 Trump Media Seen as Undervalued BTC Proxy
A report from NYDIG says Trump Media (DJT) may be among the most underpriced bitcoin-exposed public stocks. Despite holding BTC, DJT trades at a -16% premium to net asset value, making it cheaper than peers like MicroStrategy.
🔹 Circle’s Stock Nearly Quadruples; ETF Issuers Move Fast
Circle (CRCL) has continued its explosive post-IPO rally, gaining another 9% Monday. Bitwise and ProShares filed with the SEC to launch ETFs tied to CRCL’s price, with one proposing a leveraged 2x fund and the other targeting income via options strategies.
Market Snapshot
- BTC: $109,795 — Gained 3.26% over the weekend but faces resistance amid soft ETF flows and macro uncertainty.
- ETH: $2,581 — Up 4.46%, reclaiming key support and positioning for a breakout above $2,590.
- Gold: $3,314.45 — Slightly higher (+0.08%) as dollar weakness and trade tensions support demand.
- Nikkei 225: +0.51% — Japan stocks edge higher as Asia awaits U.S.-China trade outcomes.
- S&P 500: +0.11% — Modest gains led by Big Tech amid geopolitical caution.
