Preface

This article delves into the current defensive posture of the cryptocurrency market, focusing on Bitcoin's weakening structure amid diminishing demand. Despite previous bids that supported Bitcoin, current market trends indicate challenges, with rallies behaving tentatively below significant moving averages. This briefing provides insights into the broader market dynamics and key financial shifts within the Asia-Pacific region.

Lazy bag

Bitcoin's market structure is under strain due to decreased demand, leading to defensive positioning. With rallies stalling, bearish momentum seems likely.

Main Body

Welcome to the Asia Morning Digest, a succinct overview of the latest market news impacting the Asia-Pacific region, providing depth and clarity on the current financial trends.

Bitcoin's market integrity is reportedly softening as the continuous bid supporting its valuation earlier this year wanes. Demand has diminished, leading to a defensive positioning by holders and market participants. This shift is highlighted by both technical analysis and market sentiment.

According to CryptoQuant, the recent accumulation by ETFs has paused, purchases by treasury companies are sparse, and strategic acquisitions have dipped to yearly lows. These factors combined suggest that Bitcoin's price upside is confined and might remain below its 365-day moving average in the foreseeable future.

Market participants, including traders on platforms like Polymarket, are acclimating to this vulnerability, with projections favoring a potential decline to $85,000, while upside scenarios appear less likely.

Glassnode reports that short-term Bitcoin holders are realizing losses at a quickening pace, and the flow connected to ETFs remains negative. The derivatives market has shifted significantly into a risk-off mode. Traders are increasingly purchasing puts as a hedge against further downside, with implied volatility levels rising sharply.

In this uncertain environment, attention is drawn to the Active Investor's cost basis near $88,600. A persistent fall below this threshold implies significant stress for recent investors and could mark a transition to further bearish momentum. The critical support level to watch would then be around the True Market Mean of approximately $82,000, potentially leading the market into a bearish phase akin to conditions observed in 2022 and 2023.

Currently, Bitcoin is fluctuating around $92,000, showing volatility after dipping below $90,000 during the week, while Ether trades near $3,038. Both cryptocurrencies reflect the overarching cautious mood pervading the market.
Furthermore, the Nikkei 225 saw a boost attributed to Nvidia's robust earnings report, propelling sentiment in chip stocks. Reporting from CoinDesk includes the legal consequences facing Samourai Wallet’s Co-Founder for unlicensed money operations and emerging financial instruments in New Hampshire that integrate Bitcoin.

The market narrative is also influenced by GoPlus' financial achievements and developments surrounding the $GPS token, showcasing strong performance metrics in 2025.

Nvidia's recent results have temporarily alleviated market anxieties, aiding Bitcoin to recover above $90,000, while AI-related crypto tokens have also benefited from this period, highlighting Nvidia's pivotal role in the ongoing AI revolution.

Key Insights Table