Good Morning, Asia. Here’s What’s Making News in the Markets:
Welcome to the Asia Morning Briefing, your daily roundup of significant stories during U.S. trading hours, along with an analysis of market movements. For an in-depth look at U.S. markets, please refer to CoinDesk’s Crypto Daybook Americas.Bitcoin has started the week trading above $105,000 as the Asian market opens. The leading cryptocurrency remained relatively stable over the weekend, showing a modest increase of 0.4% with a decrease in trading volume.While the overall sentiment in the market continues to be optimistic, a recent analysis from CryptoQuant points to certain indicators suggesting that the Bitcoin market might be experiencing an “overheating” phase. The report indicates that demand for Bitcoin has surged to 229,000 BTC over the last month, nearing the peak of 279,000 BTC observed in December 2024. Additionally, balances held by large investors, often referred to as “whales,” have increased by 2.8%, a trend that typically signals a slowdown in accumulation. These signs imply that the current price surge, which recently hit a record of $112,000, might be approaching a short-term peak. The analysis identifies $120,000 as a significant resistance level, associated with the upper limit of the Traders’ On-chain Realized Price, where unrealized profits could reach 40%, a historical marker for local tops. Although CryptoQuant’s “Bull Score Index” remains robust at 80, indicating ongoing bullish sentiment, the rising profit margins and peak demand suggest that traders might encounter a consolidation phase before the next upward movement.
News Roundup: James Wynn Gets Liquidated, But Says He’ll ‘Run it All Back’
James Wynn, a trader known for his bold and high-leverage investments on Hyperliquid, has faced a complete liquidation, leaving him with a mere $23 in his account after amassing losses exceeding $17 million, as reported by CoinDesk. Wynn garnered significant attention with his trades involving Bitcoin, memecoins such as PEPE, and even lesser-known tokens like FARTCOIN. He initially suffered substantial losses from a colossal $1.25 billion long position on Bitcoin, resulting in a loss of over $37 million as prices dipped below $105,000 amid geopolitical tensions. Throughout the turbulent month, Wynn frequently shifted his trades, briefly achieving an unrealized gain of $85 million before market fluctuations eliminated his position entirely. An account associated with Wynn downplayed the gravity of the liquidation, confidently stating on X: “I’ll run it back, I always do. And I’ll enjoy doing it. I like playing the game. I took a large and calculated bet at making billions.”
Brazil’s Méliuz Shares Sink 8% After Announcing $78M Equity Raise to Buy Bitcoin
Brazilian fintech company Méliuz has announced plans to raise up to $78 million through a public equity offering, with the intention of using the entire amount to acquire Bitcoin and establishing the cryptocurrency as a key strategic asset within its treasury. However, the market has reacted negatively to this strategy, as evidenced by an over 8% drop in Méliuz’s share price following the announcement. The initial offering consists of 17 million common shares, with the potential to expand up to 51 million. Investors will also receive subscription warrants that allow for future stock purchases at predetermined prices. Méliuz is recognized for its cashback and financial services platform, which serves over 30 million users. The company currently holds 320.2 BTC, having previously allocated 10% of its cash reserves to Bitcoin back in March. Trading for the subscription warrants is set to begin on June 16, with share settlement and warrant issuance expected to be completed by June 18.
NYC Comptroller Rejects Mayor Adams’ ‘BitBond’, Warns Deviating from Dollar Could Undermine City’s Credit Reputation
New York City Comptroller Brad Lander has expressed strong opposition to Mayor Eric Adams’ proposal to issue municipal bonds backed by Bitcoin, describing the suggested “BitBond” as “legally dubious and fiscally irresponsible.” Lander’s critique came just days after Adams unveiled the concept at a Bitcoin conference in Las Vegas, citing the volatility of cryptocurrencies as a significant reason for their unsuitability in reliably funding essential city projects, including infrastructure and affordable housing. Since taking office, Mayor Adams has been a vocal advocate for cryptocurrency initiatives, notably converting his own paycheck into digital assets and forming a digital asset advisory council. However, Comptroller Lander raised substantial concerns regarding the practicality of the BitBond proposal, indicating that federal tax laws and city financial regulations could render it unfeasible. He warned that moving away from the dollar-based municipal borrowing framework could jeopardize investor confidence and damage New York City’s credit standing.
Market Movements:
BTC: Bitcoin demonstrated resilience, executing a V-shaped recovery between $103,813.37 and $105,305.75 amid notable increases in trading volume.
ETH: Ethereum formed a bullish reversal pattern, bouncing back from strong support at $2,472.84 to $2,527.53, driven by significant buying momentum, according to CoinDesk’s Market Insight Bot.
Gold: Gold increased by 0.6% to $3,311.66 as traders assessed its recent decline from record highs against the backdrop of ongoing demand from investors and central banks, fueled by uncertainties surrounding U.S. tariffs and broader economic risks.
Nikkei 225: Japan’s Nikkei 225 index fell by 0.89% as mixed trading conditions persisted across Asia-Pacific markets following President Trump’s announcement of increased steel tariffs.
S&P 500 Futures: U.S. stock futures dipped on Sunday as the S&P 500 had experienced its strongest month since November 2023, amid uncertainties related to President Trump’s tariffs following conflicting court rulings.
