Asia Morning Briefing: Structural Demand Anchors Bitcoin After Record $20B Liquidation

Good Morning, Asia. Here's what's making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas.

Crypto's largest-ever leverage wipeout has left traders cautious but long-term capital intact, say analysts in recent reports.

Despite the short-term market chaos from the largest ever crypto liquidation event, both Glassnode and CryptoQuant argue that beneath the surface, liquidity and structural demand held firm.

CryptoQuant wrote in a recent report that while short-term momentum has weakened, large holders continue to accumulate, and fiat liquidity is still building. USDT supply has grown by nearly $15 billion in 60 days, the fastest pace since January, while U.S. spot bitcoin ETF inflows have climbed to $3.5 billion.

Glassnode also cites this data point in its weekly market pulse, interpreting this trend as evidence that capital remains inside the system even after speculative risk was flushed out.

Where the two analyses diverge most clearly is in tone and timing.

Glassnode portrays the sell-off as a structural purge that stripped out speculative excess and forced traders back into defensive positioning. Its data show funding rates halved, perpetual CVDs turned negative, and options traders paying higher premiums for downside protection.

The firm sees this as a market in recovery mode, digesting losses and rebuilding confidence rather than preparing for an immediate rebound.

CryptoQuant, by contrast, reads the same market through a more constructive lens.

It highlights $115,000, the traders’ on-chain realized price, as the level to watch for renewed strength. A sustained move above that threshold, the firm argues, could mark the start of a new bullish phase supported by expanding stablecoin liquidity and continued whale accumulation.

The difference in outlook reflects a broader divide in sentiment across the market: a cautious reset versus a potential inflection point.

Both firms paint an emerging picture of a market transitioning from excess to equilibrium. Capital is still flowing in through ETFs and stablecoins, but positioning is defensive, and confidence needs time to rebuild.

Whether bitcoin’s next move is a rebound or a drawn-out consolidation will depend less on leverage and more on how quickly that structural demand turns into fresh risk-taking.

Market Movement

BTC: Bitcoin fell to around $112,700 after an early slide below $110,000. Profit-taking and renewed Trump trade threats pressured risk assets, though prices steadied after Fed Chair Jerome Powell signaled the central bank is nearing the end of its tightening cycle.

ETH: ETH is trading at $4,101, down 3.7%, as open interest dropped to its lowest since May and profit-taking accelerated following a rejection near $4,270, though CME traders and ETF inflows signal institutional support remains strong.

Gold: BlackRock’s Evy Hambro said gold could climb well beyond $4,200 as paper currencies are repriced against real assets, while Bank of America expects it to reach $5,000 and silver $65 by 2026, with both institutions citing fiscal deficits, investor demand, and structural shifts favoring real assets despite risks of short-term consolidation.

Nikkei 225: Asia-Pacific markets opened higher Wednesday, with Japan’s Nikkei 225 up 0.3%, even as renewed U.S.-China trade tensions and threats of “retribution” from President Trump kept volatility elevated.

Elsewhere in Crypto:

• Binance claims it ‘does not profit’ from its token listing process, calls allegations ‘false and defamatory’ (The Block)
• Laura Loomer Stokes Speculation Over Trump SBF Pardon: Is There Anything to It? (Decrypt)
• Celsius Wind-down Secures $300M From Tether, Say GXD Labs, VanEck (CoinDesk)