What to know:
- Ethereum’s potential to reach $5,000 this month has risen to 26% on Polymarket, spurred by institutional buying and shifting BTC-ETH flows.
- Analysts are observing a redistribution of liquidity in the cryptocurrency market, with Ethereum maintaining its pivotal position due to institutional backing.
- Bitcoin’s momentum is waning, with $940 million in liquidations, while Ethereum has surged 20% over the last thirty days, outpacing Bitcoin.
Good Morning, Asia. Here’s what’s making news in the markets:
Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk’s Crypto Daybook Americas.
Ethereum’s forecast for reaching $5,000 this month climbed to 26% on Polymarket, an increase from 16% just days ago, as traders adjust to momentum driven by institutional support and changing BTC-ETH flows.
“Ethereum’s recent strength is mainly showcased by the level of flows into it, where a major liquidity floor has been built by institutions.”
“La reciente fortaleza de Ethereum se muestra principalmente por el nivel de flujos hacia él, donde se ha construido un importante piso de liquidez por parte de las instituciones.”
- March Zheng.
He mentioned that the ETH/BTC ratio was at a local low, and a rebound was overdue, supported by stronger fundamental factors like global adoption of stablecoins and improved regulations.
Market dynamics added further clarity to the surge, according to Enflux, a market maker. XRP joined ETH as a frontrunner in the major crypto assets, while funds chased fresh narratives, including CRO following the news of Trump Media’s “Cronos Treasury” initiative.
Trading activity on Hyperliquid reached record volumes in July, surpassing Robinhood, indicating a shift in retail speculation towards native platforms, with its $HYPE token posting significant gains. Thus, market observers highlight that actual market closes matter less than structural liquidity shifts across the crypto ecosystem.
“Markets react to headlines, but longer-term value is driven by fundamentals,” said Gracie Lin. “Los mercados reaccionan a los titulares, pero el valor a largo plazo se rige por los fundamentos.”
“Ethereum continues to demonstrate resilience through real utility — even amid price fluctuations, noteworthy institutional actions like BitMine’s ETH accumulation signal a steadfast belief in its essential role in crypto.”
ETH has outperformed BTC remarkably, increasing 20% in the last thirty days, while Bitcoin has seen a 6% drop, demonstrating how ETH is securing greater liquidity compared to BTC despite its smaller market capitalization.
Market Movements
- BTC: Bitcoin trades at $111,733.63, showing signs of weakening on-chain activity and $940M liquidations.
- ETH: Ether trades at $4,598.67, below its recent peak of $4,946, bolstered by institutional inflows even as DeFi activity lags compared to previous cycles.
- Gold: Trading at $3,410.80, maintaining above $3,400 as hints of Powell’s potential rate cuts, Trump’s Federal Reserve changes, and central bank buying drive safe-haven interest.
- Nikkei 225: Asia-Pacific markets predominantly declined despite gains in Wall Street, with Japan’s Nikkei 225 down 0.17%.
- S&P 500: The S&P 500 increased by 0.41% to 6,465.94 on Tuesday as investors remained optimistic following Trump’s dismissal of Fed Governor Lisa Cook and eagerly anticipated Nvidia’s earnings reports.
