Welcome to Asia Pacific Morning Brief. An important digest of overnight cryptographic development that shapes regional markets and global sentiment.
Grab some green tea and look at this space. Bitcoin’s advantages have been temporarily immersed at less than 60% amid the momentum of AltCoin. Japan’s election shift accelerates debate on crypto tax reform, potentially reducing it from 55% to 20%. Meanwhile, Jack Dorsey’s Block Inc. joined the S&P 500 to examine the viability of the Bitcoin integrated business model.
Bitcoin control is below the 60% threshold
Bitcoin’s advantage was shortly below 60% this morning for the first time since March. The metric measuring Bitcoin’s share of total cryptocurrency market capitalization fell to 59.8% early on Monday.
Bitcoin’s advantage fell shortly below 60% this morning. Source: CoinMarketCap
This decline reflects enhanced Altcoin performance across key digital assets. Ethereum won 4%, while XRP and Solana rose 2% and 3% respectively. Bitcoin itself retreated by 1% in the same period.
Market dynamics suggest that portfolio rebalancing is accelerating towards alternative cryptocurrencies. Theme-based tokens experienced a significant surge with wider Altcoin momentum. Control has recovered to 60.1% at 01:00 UTC.
Japanese elections spark momentum for crypto tax reform
Japan’s liberal Democrats have led to the most important election defeat in decades. The LDP lost a majority in both houses for the first time since 1955. Coalition partner Komeito has dropped to at least two seats besides maintaining control in Sunday’s Senate election.
This historic change creates unprecedented political instability amid rising costs of living and stagnant wages. Prime Minister Isba is facing a call for an internal resignation as populist opposition gains leverage. Markets are anticipating volatility as weakened governments negotiate from a declining position.
Transforming digital asset policies
The election results will significantly accelerate the debate on cryptocurrency tax reform. Opposition parties have campaigned extensively on tax reduction platforms, which target crypto assets in particular. The Japan Blockchain Association has submitted a proposal for separate taxation, replacing the current maximum tax rate of 55% with a unified tax of 20.315%.
The current heavy taxation has not prevented Japan from ranking fifth in the world in cryptocurrency trading volume. The Bitcoin and JPY pair represent the world’s third largest market despite regulatory constraints. The adoption of corporate Bitcoin will accelerate domestically as Metaplanet becomes the fifth largest institutional owner globally.
Web3 supporter Yasuno (right) has secured his first seat on parliament. Source: Beincrypto
Japan’s $20 trillion household savings pool represents the potential for large untapped investments. A significant tax cut could unleash domestic demand and amplify Bitcoin’s continued price momentum. Web3 supporter Yasuno has secured his first seat on parliament and informed him of prioritization of technological policy in the new political landscape.
Block Inc achieves S&P 500 milestones
Jack Dorsey’s Block Inc will join the S&P 500 Index on Wednesday to show its institutional awareness of its Bitcoin-centric business model. The former Square company surged 10% in aftermarket trading after the announcement. The block replaces Hess Corporation with the benchmark index.
This milestone follows Coinbase’s inclusion two months ago, establishing a crypto-centric company within traditional equity indexes. Block operates a comprehensive digital asset infrastructure, including Bitkey’s independent wallet and Proto Mining Services.
The company demonstrates its strategic Bitcoin commitment through systematic Treasury allocations. The block invested 10% of its monthly Bitcoin profits in BTC, accumulating 8,584 coins worth around $1 billion. Management has opened saw the Ministry of Finance blueprints to allow for company recruitment and duplication.
Block’s S&P Inclusion examines the institutional acceptance of the Bitcoin integrated business model. This achievement represents the maturity of the broader market as traditional indexes cater to blockchain native companies.
Mori Kiyoshi and Paul Kim contributed.