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.
Bitcoin
BTC$105,606.72
When Asia launches Business Week it has traded for over $105,000. The world’s largest digital assets remained relatively stable over the weekend, moving 0.4%, and trading volumes were reduced.
While the overall market situation remains bullish, a new report from Cryptoquant suggests that certain indicators indicate that the BTC market is “overheating.”
The report shows that demand for Bitcoin has risen to 229,000 BTC over the past 30 days, approaching the peak of 279,000 BTC in December 2024. At the same time, whales’ balances have risen by 2.8%, at a rate where accumulation is often slower.
These metrics suggest that the current rally, which pushed prices to a record $112,000, could be approaching the short-term top.
The report highlights $120,000 as the next major resistance level, tied to the upper band of traders’ on-chain-on-chine realised prices.
Cryptoquant’s “Bull Score Index” remains strong at 80, but continued bullish momentum, increased profit margins and growth in peaking demand suggest that traders could face a consolidated period before the next leg rises.
News Round Up:
James Wynn is liquidated, but he says, “I’ll run it all.”
Coindesk has been fully liquidated by James Wynn, a trader famous for his offensive and highly leveraged bets after previously reported losing more than $17 million in total, leaving just $23 in his account.
Winn has attracted a lot of attention for transactions that include memokines like Bitcoin, Pepe, and even obscure tokens like fartcoin, which first faced a sharp decline from a massive $1.25 billion position in BTC, resulting in losses of over $37 million after falling below the geopolitical termoil with prices below $105,000.
Throughout the volatile month, Winn quickly traded and temporarily acquired an unrealized profit of $85 million before the market swing wiped him out completely. Accounts related to Wynn downplay the dramatic liquidation and state rebelliously in X.
Brazilian Melluse shares sink 8% after unveiling $78 million in stock to buy Bitcoin
Brazilian Fintech Méliuz is planning to raise up to $78 million through public stock offerings, with the aim of all proceeds being allocated to Bitcoin purchases and placing cryptocurrencies as its main strategic asset for its Treasury.
However, Melluse’s strategy is not yet impressed with the market as stocks fell more than 8% after the announcement. The initial offer includes 17 million shares, which could expand up to 51 million, and investors will receive a subscription warrant allowing future share purchases at a SET price.
Known for its cashback and financial services platform that serves more than 30 million users, Méliuz currently owns 320.2 BTC, and in March it had committed 10% of its cash reserve to Bitcoin. Subscription warrant transactions are scheduled to begin on June 16th.
NYC Comptroller rejects Adams mayor’s “Bitbond” and warns that deviating from the dollar could damage the city’s reputation
New York City Director Brad Lander has sharply criticised Mayor Eric Adams’ plan to issue Bitcoin-backed municipal bonds, labeling the proposed “Bitbond” as “legally suspicious and financially irresponsible,” Coindesk previously reported.
Lander rejected the idea a few days after Adams introduced it at a Bitcoin conference in Las Vegas, highlighting that cryptocurrency volatility would make it suitable for ensuring that critical urban projects such as infrastructure and affordable housing.
Mayor Adams has been actively promoting cryptocurrency initiatives since taking office, including converting his own pay into digital assets and establishing the Digital Asset Advisory Committee.
However, Comptroller Lander highlighted serious practical concerns about Bitbond’s proposal, noting that federal tax laws and city financial regulations would negate the proposal, warning that deviating from the dollar-based municipal borrowing system could undermine investor trust and New York City’s credit reputation.
Market movements:
- BTC: Bitcoin showed resilience, staging a V-shaped recovery from $103,813.37 to $105,305.75 amid a notable volume spike.
- ETH: According to Coindesk’s Market Insight Bot, Ethereum formed a bullish inversion pattern, rebounding to $2,527.53 from strong support at $2,472.84 amid a massive purchase momentum.
- gold: Traders rose 0.6% to $3,311.66 as they squeezed a recent retreat from record highs on ongoing investors and central bank appetites driven by US tariffs and uncertainty about broader economic risks.
- Nikkei 225: Japan’s Nikkei 225 fell 0.89% as the Asia-Pacific market mixed and mixed after it announced an increase in tariffs on steel.
- S&P 500 Futures: Stock futures fell on Sunday to start June after the strongest S&P 500 month since November 2023.
Other locations in the code:
- When WinterMute warns you about an upgrade of Pectra, you will remain an Ethereum user at risk of automatic attacks (block)
- This is at risk for crypto in future elections (decryption) in Korea
- JPMorgan’s Jamie Dimon says they should stockpile missiles rather than Bitcoin (Coindesk).
- The IMF raised concerns about Pakistan’s plan to allocate 2,000 MW of electricity to bitcoin mining (local report)