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Welcome to the Asia Morning Briefing, where we provide a concise overview of the latest market news impacting Bitcoin (BTC) and other cryptocurrencies. As of Thursday morning in Asia, Bitcoin is holding steady around $115,000, marking a 1% increase over the past 24 hours. This price action comes as the cryptocurrency continues its post-all-time-high (ATH) correction amidst low trading volumes and weakening market conviction.
Understanding Bitcoin’s Current Market Position
According to data analytics firm Glassnode, Bitcoin has entered a so-called “air gap” – a low-liquidity zone ranging from $110,000 to $116,000. This situation arose after Bitcoin broke down from a significant supply cluster where short-term holders had previously found support. In these low-activity zones, trading tends to be minimal, which can either solidify a base for accumulation or trigger a deeper downturn if demand fails to return.
Market Analysts Weigh In
Glassnode analysts have described the range between $110,000 (the previous ATH) and $116,000 (recent buyer cost basis) as the new battleground for Bitcoin. While some opportunistic buying has occurred, with approximately 120,000 BTC purchased during the recent dip, prices have yet to convincingly reclaim critical resistance levels. In particular, the ~$116,900 threshold represents recent short-term holder entry points, a level that remains elusive.
Profitability and Sentiment Trends
Interestingly, the profitability of short-term holders has decreased from 100% to 70%. This decline aligns with typical patterns seen during the mid-phase of a bull market. However, without new inflows of capital, market sentiment risks deteriorating further. ETF flows have also taken a hit, experiencing a -1,500 BTC outflow earlier this week, marking the largest withdrawal since April.
Derivatives Market Insights
Funding rates in the derivatives market have begun to cool, indicating a decrease in leverage and a more cautious approach among speculators. Market maker Enflux echoed these sentiments, stating, “Crypto markets remain in a fragile holding pattern. Despite some relief in the altcoin space, majors like BTC and ETH are still struggling to inspire confidence.”
Ethereum and the Broader Crypto Market
In the last 24 hours, Ethereum (ETH) has risen by 2%, trading just below $3,600. The CoinDesk 20 Index, which tracks a broad range of crypto assets, increased by 1.69% to reach 3,815.22. Enflux further noted that until BTC and ETH can regain strength with substantial volume, the path of least resistance for these assets may remain sideways or even decline.
Future Market Movements: What Lies Ahead?
The market’s next significant move will likely depend on whether buyers are willing to step in and establish a base within this low-volume zone. Alternatively, we may see another downward push towards $110,000 to reset the trend. Currently, traders are exhibiting caution, and bullish sentiment remains unproven.
Potential Market Movers
Market observers are speculating about a potential Bitcoin supply shock, attributed to declining OTC desk reserves and consistent corporate accumulation. This could “uncork” BTC price action following a dip below $110,000. Meanwhile, Ethereum appears to be testing a local top as sell pressure mounts at $419 million, its second-highest on record. As ETH retests a significant resistance zone near $4,000, there are rising concerns of a possible 25–35% decline by September.
Gold and the Broader Economic Context
Meanwhile, gold’s rally has stalled as traders have begun to take profits while assessing rising Fed rate cut odds, U.S. trade tensions, and a forthcoming Fed leadership change. As a result, spot gold was last priced at $3,372.11, a decrease of 0.24% for the day.
Asia-Pacific Markets Overview
Asia-Pacific markets opened mixed on Thursday, with Japan’s Nikkei 225 remaining flat as investors reacted to new U.S. semiconductor tariff threats. In the U.S., stock futures were also flat on Wednesday night as traders processed Trump’s new semiconductor tariffs, despite the S&P 500 being up 1.7% for the week.
Trending Crypto News
In other crypto news, industry leaders are celebrating the SEC’s approval of liquid staking, which could pave the way for increased institutional adoption. In a separate development, Roman Storm has been found guilty of unlicensed money transmitting conspiracy in a partial verdict. Additionally, Trump Media is testing ‘Truth Search’ utilizing Perplexity AI.
Stay tuned for further updates on Bitcoin and cryptocurrency market trends as we continue to monitor these developments closely.
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