Good morning, Asia. This is what makes news in the market:
Welcome to Asian morning briefings, daily summary of top stories throughout the US time, and an overview of market movements and analysis. For a detailed overview of the US market, see Coindesk’s Crypto Daybook Americas.
As Asia launches a new trading week, Bitcoin
In the age of ongoing BTC purchases from Michael Saylor’s Strategy (MSTR), the influx of BTC Exchange Traded Fund (ETF), and the increase in companies adopting BTC financial strategies, we need to wonder why Bitcoin prices have not passed by much.
Cryptoquant’s new report spells it out. All of this institutional action does not compensate for the general decline in spot demand for BTC.
“The annual growth in Bitcoin demand shows a similar picture. Purchases of ETFs and MSTRs are part of Bitcoin demand, the overall demand contraction is more than offsetting these purchases, and the acceleration of overall demand growth is what drives price increases.”
Cryptoquant points out that over the past 30 days, demand for BTC for tuning of -895K has been shrinking.
Furthermore, ETF and MSTR purchases have slowed down compared to December. Last month this year, ETFS purchased 86,000 BTC and 171,000 MSTR, but the number of those has dropped significantly last month. The ETF only bought 40k BTC, while the MSTR bought 16K.
BTC is stuck in the integration phase, and demand is not to fuel the breakout, Cryptocant writes.
An additional data point for proof of slowing demand is the BTC’s almost empty memo pool. This indicates low market demand.
The question is, how much resistance will you have to pay for BTC if your in-facility purchases continue to slow?
Skybridge Capital’s Anthony Scaramucci is on the record as he says that BTC Treasury trends (a reliable source of demand for Bitcoin) are declining.
“Now we have this replica Treasury idea,” Scaramucci said in an interview with Bloomberg last week. “So, you know, it’s gone.”
“Saylor’s case is different, because he’s now on a few different products,” Scaramucci continued in an interview. “I’m not negative about others because I’m too bullish on Bitcoin, but I’m just saying it as an investor and have to look into the underlying costs associated with each of these treasury companies.”
Meanwhile, Standard Chartered remains the BTC Bull, which maintains banks that maintain the $20,000 price target for the world’s largest digital assets.
Market movements:
- BTC: Over the weekend, Bitcoin has skyrocketed from $108,327 to $108,620 over the past hour, with $108,200-$108,300 supporting the uptrend.
- ETH: Ethereum surged from $2,520.45 to $2,558.63 on July 6th to 272,352 ETH, finding support at $2,510 amid global economic tensions, but the June ETF ETF records potential whale accumulation signal due to a breakout of nearly $2,600.
- gold: Gold surged at $3,336.61 at 1.91% last week, driven by a weaker dollar, a 91.5% odds from the Federal Reserve cut in September, tariff threats and a 73% spike in China’s gold imports.
- Nikkei 225: After the White House continued its complicated message about tariffs, the Japanese benchmark Nikkei 225 slipped 0.26%.
Other locations in the code:
- Trade tensions plunge to 22% as Coindesk, US recession odds at Polymekit
- Ethereum is driving the future of Wall Street. The Cannes crypto scene shows how far it will come (CNBC)
- Sweden orders police to increase the bouts of criminal code benefits (decryption)
