Bitcoin Aims for $130K as Market Euphoria Grows: Ethereum and Solana Take Center Stage

Good Morning, Asia! Welcome to your daily Asia Morning Briefing, where we summarize the most significant market movements and analyses during U.S. hours. For a comprehensive overview of U.S. markets, check out CoinDesk’s Crypto Daybook Americas.

Bitcoin’s Bullish Trajectory: Is $130K on the Horizon?

Bitcoin is currently trading above $118,800, as the cryptocurrency market digests its recent rally that peaked at $122,000, surpassing previous all-time highs. However, on-chain data indicates that a wave of profit-taking has begun, especially among short-term holders with substantial unrealized gains. According to a recent report from Glassnode, historical trends suggest that there may still be room for further upward movement, though caution is advised as early overheating signals are beginning to emerge.

The report notes that “short-term holders are now sitting on significant unrealized profits,” pushing several indicators into what is considered “overheated territory.” Specifically, the Short-Term Holder Relative Unrealized Profit metric reached 15.4%, breaching the +1 standard deviation threshold before cooling slightly. Historically, this level often precedes a top formation.

Additionally, the Realized Profit to Loss Ratio surged to 39.8%, well above the +2 standard deviation threshold, indicating intense profit-taking activity. While this figure has since declined to 7.3%, the elevated readings align with behaviors typical of late-stage bull markets. “Both the Percent of Spent Volume in Profit and the Realized Profit to Loss Ratio have signaled the initial wave of excessive profit-taking,” the report concludes. Although this does not definitively indicate a market top, such formations generally unfold across multiple waves. The next resistance level is projected around $130K.

Ethereum and Solana: Altcoin Surge Amid Bitcoin Profit-Taking

As traders rotate into altcoins, Ethereum (ETH) has experienced a notable surge, increasing by 7.5% in the past 24 hours. Analysts attribute this uptick to the advancing GENIUS Act, which has helped ETH outpace Bitcoin and break free from recent consolidation. Currently, Ethereum is trading above $3,400, buoyed by strong spot ETF inflows and steady demand from crypto treasury firms. This marks ETH’s highest level since January 2025.

Meanwhile, Solana (SOL) has also demonstrated considerable strength, rising by 5% due to fresh on-chain data indicating that Galaxy Digital accumulated $55 million in SOL within just two hours, withdrawing tokens from multiple centralized exchanges. The shift towards ETH and SOL comes as Bitcoin’s short-term upside appears increasingly constrained by profit-taking pressure, even as the broader market structure remains intact.

Coinbase Wallet’s Rebranding: A New Era for Crypto Accessibility

In a significant development, Coinbase has officially rebranded its Wallet product as the “Base App”, confirming speculation that had been circulating after the company removed its X profile earlier this week. This strategic move positions the app as a central gateway into the Base ecosystem, now envisioned as a comprehensive on-chain platform designed for mainstream users.

The rebrand was unveiled during Coinbase’s “A New Day One” event, which outlined a broader vision for Base centered around three pillars: the existing Layer-2 network Base Chain, a developer toolkit suite known as Base Build, and the newly launched Base App. Unlike its predecessor, the Base App is not merely a cryptocurrency storage solution; it integrates chat, payments, trading, and a mini-app marketplace that enhances social and financial experiences.

This isn’t Coinbase’s first wallet overhaul (veteran users will recall “Toshi”), but it stands as the most ambitious to date. As Base increasingly distances itself from the Coinbase brand, the new app aims to reinforce Base’s identity as a more decentralized and open ecosystem, grounded in the core values of cryptocurrency, yet tailored for everyday users.

Market Movements: An Overview of Current Trends

In broader market movements, Bitcoin hovers near $118,000 in Asia as traders anticipate a potential rate cut by the Fed following soft U.S. CPI data. K33 Research has posited that Bitcoin’s traditional four-year cycle may be evolving as the asset matures.

Ethereum, as mentioned, is trading above $3,400 after experiencing significant gains, while gold has rebounded to trade above $3,350 due to weaker-than-expected U.S. producer inflation data and renewed speculation regarding the potential removal of Fed Chair Powell, which has weighed on the dollar and revived hopes for a more dovish monetary policy.

In Japan, the Nikkei 225 index fell by 0.6% amid concerns surrounding U.S.-Japan trade relations, while the S&P 500 in the U.S. showed signs of recovery, with a 0.3% increase following President Trump’s comments assuring he does not plan to fire Fed Chair Jerome Powell, easing market jitters.

Looking Ahead: The Future of Crypto and Market Reactions

As we look ahead, it will be crucial to monitor how these dynamics unfold. The current market atmosphere is a mix of excitement and caution, as traders balance potential gains with profit-taking pressures. The ongoing developments surrounding Bitcoin, Ethereum, and Solana are indicative of a vibrant and rapidly evolving cryptocurrency landscape.

For those interested in entering the crypto space, resources are available detailing how to buy Bitcoin, how to buy Ethereum, and how to buy Solana. As the market continues to evolve, staying informed will be your best strategy.