Good Morning, Asia. Here’s What’s Making News in the Markets:
Welcome to the Asia Morning Briefing, a concise daily recap of significant stories and market dynamics during U.S. trading hours. For an in-depth look at U.S. markets, refer to CoinDesk’s Crypto Daybook Americas. Bitcoin has surpassed the $105,000 mark as the Asian trading week commences. The leading cryptocurrency exhibited stability over the weekend, with only a minor fluctuation of 0.4% and lower than usual trading volumes.
Despite a generally optimistic market outlook, a recent report from CryptoQuant indicates that some indicators suggest the Bitcoin market may be “overheating.” The study reveals that demand for Bitcoin has surged to 229,000 BTC in the last month, nearing the December 2024 high of 279,000 BTC. Concurrently, holdings by large investors, often referred to as “whales,” have increased by 2.8%, a trend that typically signals a deceleration in accumulation. These signs imply that the ongoing price rally, which recently peaked at $112,000, could be approaching a temporary ceiling.
The report identifies $120,000 as a crucial resistance point, associated with the upper limit of the Traders’ On-chain Realized Price, where unrealized profits would reach 40%. Historically, this threshold has marked local price peaks. Although CryptoQuant’s “Bull Score Index” remains robust at 80, indicating sustained bullish momentum, the rising profit margins and peak demand growth suggest traders might encounter a consolidation phase prior to another upward movement.
News Roundup: James Wynn Gets Liquidated, But Says He’ll ‘Run It All Back’
James Wynn, a trader known for his high-risk, high-reward strategies on Hyperliquid, has faced complete liquidation, leaving him with a mere $23 in his account after incurring losses exceeding $17 million. Wynn, who gained notoriety for his trades involving Bitcoin, popular memecoins like PEPE, and lesser-known tokens such as FARTCOIN, suffered significant setbacks from a massive $1.25 billion long position on Bitcoin, resulting in a loss of over $37 million when prices fell below $105,000 due to geopolitical unrest. Throughout the tumultuous month, Wynn shifted rapidly between trades, briefly realizing an unrealized gain of $85 million before the market fluctuations led to his total collapse. A related account dismissed the severity of the liquidation, defiantly asserting on social media, “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
The Brazilian fintech company Méliuz has announced plans to raise up to $78 million through a public equity offering, intending to use the entire proceeds for Bitcoin purchases and integrating the cryptocurrency as a key strategic asset within its treasury. However, the market has reacted negatively to Méliuz’s strategy, as its shares plummeted over 8% following the announcement. The initial offering consists of 17 million common shares, with the possibility of expanding up to 51 million, and investors will receive subscription warrants that allow for future stock purchases at predetermined prices.
Méliuz, which is known for its cashback and financial services platform serving over 30 million users, currently possesses 320.2 BTC, having previously allocated 10% of its cash reserves to Bitcoin 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’s Comptroller Brad Lander has delivered a scathing critique of Mayor Eric Adams’ proposal to issue municipal bonds backed by Bitcoin, deeming the suggested “BitBond” as both “legally dubious and fiscally irresponsible.” This condemnation came just days after Adams unveiled the concept at a Bitcoin conference in Las Vegas, underscoring that the volatility of cryptocurrencies renders them unsuitable for reliably funding essential city initiatives, including infrastructure improvements and affordable housing projects.
Since taking office, Mayor Adams has been an enthusiastic advocate for cryptocurrency initiatives, having converted his own salary into digital assets and formed a digital asset advisory council. Nonetheless, Comptroller Lander raised significant concerns regarding the practicality of the BitBond proposal, highlighting that federal tax laws and city financial regulations would render it unfeasible. He cautioned that moving away from the traditional dollar-based municipal borrowing system could erode investor confidence and harm New York City’s credit standing.
Market Movements:
BTC: Bitcoin demonstrated resilience, undergoing a V-shaped recovery between $103,813.37 and $105,305.75 amid notable spikes in trading volume. ETH: Ethereum established a bullish reversal pattern, bouncing back from solid support at $2,472.84 to $2,527.53, driven by high-volume buying activity, as reported by CoinDesk’s Market Insight Bot. Gold: Gold rose by 0.6% to $3,311.66, as traders evaluated its recent retreat from all-time highs against sustained interest from investors and central banks amid uncertainties regarding U.S. tariffs and broader economic risks. Nikkei 225: Japan’s Nikkei 225 index fell by 0.89% as mixed trading conditions prevailed across Asia-Pacific markets following Trump’s announcement of increased steel tariffs. S&P 500 Futures: Stock futures declined on Sunday, marking the beginning of June after the S&P 500 experienced its strongest month since November 2023, amid uncertainties linked to President Trump’s tariffs following conflicting court rulings.
