Cointime

Cointime

Download App
iOS & Android

Asia Morning Briefing: Bitcoin Trades at $109K as U.S. ETF Demand Fades and Powell’s Hawkish Tone Hits Risk Assets

What to know:

  • Bitcoin fell to around $109,800 as traders reacted to Fed Chair Jerome Powell's comments, which dampened demand for BTC ETFs.
  • U.S. investor interest in crypto has cooled, with spot bitcoin ETFs seeing significant outflows and institutional traders taking profits.
  • Solana's price dropped 8% despite the launch of U.S. spot Solana ETFs, erasing its year-over-year gains.

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.

Bitcoin is trading around $109K as Hong Kong begins its business day, as traders continue to digest comments from Fed Chair Jerome Powell that another rate cut isn't a certain thing, chilling demand for BTC ETFs and other risk assets.

Polymarket traders now assign a 71% chance of a 25-basis-point rate cut at the Fed’s December meeting, down sharply from about 90% before Powell’s remarks. The probability of no change has risen to 26%, showing how quickly traders recalibrated expectations after the press conference.

According to CryptoQuant’s latest weekly report, U.S. investor demand for crypto has cooled sharply. Spot bitcoin ETFs posted a seven-day average outflow of 281 BTC, one of the weakest readings since April, while ether inflows have nearly stalled. Coinbase premiums for both coins have flattened to near zero, and the CME futures basis has dropped to multi-year lows, signaling that institutional and retail traders alike are taking profits rather than adding exposure.

On-chain analytics from Glassnode paints a similar picture of waning conviction. Bitcoin continues to struggle below the short-term holders’ cost basis of around $113,000, with long-term holders distributing roughly 104,000 BTC per month. Transfer volumes from these wallets to exchanges have surged to $293 million a day, suggesting that seasoned investors are cashing out into weakening demand.

The broader crypto market mirrored that fatigue. Solana fell 8% on Thursday, as CoinDesk previously reported, to $186 despite the launch of the first U.S. spot Solana ETFs.

Bitwise’s BSOL pulled in $116 million in two days, and Grayscale’s GSOL attracted $1.4 million, yet the token’s decline wiped out its year-over-year gains. Sentiment was further dampened by large on-chain transfers from Jump Crypto to Galaxy Digital, which prompted speculation about portfolio rebalancing.

With subdued volatility metrics and balanced positioning, traders are now watching the Fed’s next move. Right now, Polymarket traders are assigning a 55% chance to no change, which has increased marginally since Powell's recent comments.

When the U.S. government officially re-opens, and data is released that paints a worse picture of the economy than is currently known, Powell's stance could change. And crypto traders will be watching.

Market Movement

BTC: Bitcoin fell about 5% over the past 24 hours to roughly $109,800, giving back its earlier weekly gains as traders reacted to Powell’s hawkish comments and fading U.S. ETF inflows.

ETH: Ether slipped 1.8% to about $3,850, extending its monthlong decline as U.S. spot ETF inflows slowed to near zero and futures demand weakened.

Gold: Gold fell $16.50 to $3,984.70 and silver slipped to $47.89 as Powell’s hawkish comments after the Fed’s rate cut dampened hopes for further easing and lifted Treasury yields.

Nikkei 225: Asia-Pacific stocks rose Friday after Trump and Xi agreed to ease trade tensions in South Korea, with Japan’s Nikkei 225 climbing more than 1% to a new record.

Elsewhere in Crypto:

  • Drake, Adin Ross Sued Over 'Deeply Fraudulent' Promotion of Crypto Casino Stake (Decrypt)
  • UFC-Endorsed FIGHT Token Sale Raises $183M, Exceeding $1.5M Target (CoinDesk)
  • Western Union Files Trademark for ‘WUUSD’ a Day After USDPT Stablecoin Reveal (Decrypt)
Comments

All Comments

Recommended for you

  • Bank of Japan Adjusts Bond Purchase Plan for July to September

    On June 16, the Bank of Japan announced plans to purchase 355 billion yen of 1 to 3-year Japanese government bonds twice a month from July to September (previously three times a month for 255 billion yen). The plan includes purchasing 320 billion yen of 3 to 5-year Japanese government bonds twice a month (previously three times a month for 230 billion yen). Additionally, the bank will buy 335 billion yen of 5 to 10-year Japanese government bonds twice a month (previously three times a month for 240 billion yen). It also plans to purchase 100 billion yen of 10 to 25-year Japanese government bonds twice a month (previously three times a month for 80 billion yen). Lastly, the plan includes purchasing 75 billion yen of ultra-long-term (remaining maturity of over 25 years) Japanese government bonds twice a month (previously twice a month for 75 billion yen).

  • Bank of Japan: Prepared to Modify Bond Purchase Reduction Plan if Necessary in Future Policy Meetings

    On June 16, the Bank of Japan stated that it will respond flexibly if long-term interest rates rise rapidly, such as by increasing the purchase of Japanese government bonds and implementing fixed-rate bond purchase operations. It is prepared to modify the bond purchase reduction plan in future policy meetings if necessary.

  • Bank of Japan: Need to Pay Special Attention to Future Developments in the Middle East and Their Impact on Financial Markets, Economy, and Prices

    On June 16, the Bank of Japan stated that it is currently necessary to pay special attention to the future developments in the Middle East and their impact on financial markets, foreign exchange markets, the economy, and prices. It is essential to monitor global demand related to artificial intelligence and the future fluctuations in foreign exchange rates and their effects on the Japanese economy and prices.

  • Bank of Japan: Accommodative Financial Environment Expected to Persist After Policy Rate Adjustment

    On June 16, the Bank of Japan stated that it expects the accommodative financial environment to continue after the adjustment of the policy rate, providing strong support for economic activities.

  • Morgan Stanley: Hard Drive Shortage to Last at Least Until 2028, Seagate and Western Digital Set for Major Gains

    On June 16, Morgan Stanley significantly raised the target prices for Seagate Technology and Western Digital in a notice to clients, citing a survey in Asia that indicates the hard drive cycle is extending, with shortages expected to last at least until 2028. Analyst Erik Woodring raised Seagate's target price from $767 to $1,035 and Western Digital's target price from $488 to $650, maintaining an overweight rating for both. Woodring stated, "Our surveys in Asia over the past three weeks clearly show that the hard drive cycle is extending—shortages are expected to last at least until 2028—and also indicate that hard drive prices are strengthening significantly and meaningfully." The firm estimates that HDD demand is growing by 40% to 50% annually, while supply is increasing closer to 30% to 35%. Morgan Stanley noted that this gap is driving the shortage to "last at least until 2028."

  • Bank of Japan Raises Interest Rate by 25 Basis Points as Expected

    On June 16, the Bank of Japan raised its interest rate by 25 basis points, increasing the target rate from 0.75% to 1.00%, the highest level in 31 years, in line with market expectations. This decision follows three consecutive meetings where rates remained unchanged.

  • Bank of Japan to Halt Bond Purchase Reduction from April 2027

    On June 16, the Bank of Japan announced that it will suspend the reduction of bond purchases starting from April 2027, maintaining the monthly purchase scale of Japanese government bonds at approximately 2 trillion yen. The current plan to reduce the monthly purchase scale of Japanese government bonds by 200 billion yen will remain unchanged until the first quarter of 2027.

  • Japan's Interest Rates May Enter '1 Era' for the First Time in Over 30 Years

    On June 16, the market widely expects that the Bank of Japan will raise its benchmark interest rate to the highest level since 1995 during a monetary policy meeting held without the presence of its governor. According to a survey by industry media, nearly all observers of the Bank of Japan anticipate that at the end of the two-day meeting on Tuesday, policymakers will increase the benchmark rate by 25 basis points to 1%. The Bank of Japan has previously stated that Governor Kazuo Ueda has been hospitalized for treatment of a liver cyst infection and will submit his opinions to the board in writing, without participating in the vote in person. This anticipated rate hike will be the first by the Bank of Japan since December of last year, coinciding with the central bank's efforts to address inflationary risks stemming from conflicts in the Middle East, despite a peace agreement being on the verge of formal signing. The market will closely monitor any clues regarding when the Bank of Japan may take further action, as traders are concerned that if the yen weakens, Japanese authorities may intervene in the foreign exchange market after the meeting concludes.

  • US Spot Ethereum ETF Sees Net Inflow of $22.58 Million Yesterday

    On June 16, according to monitoring by Trader T, the US spot Ethereum ETF experienced a net inflow of $22.58 million yesterday.

  • US Spot Bitcoin ETF Sees Net Outflow of $64.84 Million

    On June 16, according to monitoring by Trader T, the US spot Bitcoin ETF experienced a net outflow of $64.84 million yesterday.

Daily Must-Read

Popular Activities

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

RaveDAO at Terra Solis by Tomorrowland: A Female-Led Techno Night Where Web3 Culture Converges

April 30 - April 30
Dubai

Popular Tags

Cointime
News
Contents
RSS
Company