Asia Morning Briefing: Market Turns Defensive as Bitcoin Loses Its Bid

Why It Matters

The weakening demand and risk‑off positioning signal limited upside for Bitcoin and could trigger broader crypto sell‑offs, affecting institutional exposure, ETF flows, and related financial products.

Summary

Bitcoin’s price is hovering around $92,000 as demand wanes and market structure weakens, with analysts flagging the end of the core demand wave that powered last year’s rally. CryptoQuant notes slowing ETF accumulation and Treasury‑company buying, while Glassnode reports short‑term holders realizing losses at the fastest rate since the FTX collapse and derivatives shifting into risk‑off mode. Traders on Polymarket are betting on a pullback toward $85,000, and the active‑investor cost basis of $88,600 is seen as the next critical test of support, with a breach potentially pushing the market into a bear‑market phase similar to 2022‑23. Ether follows Bitcoin’s defensive tone, trading near $3,038, as broader risk aversion also lifts gold and lifts the Nikkei on Nvidia earnings.