Asia Crypto News: Coinbase Premium, Not Bank of Japan Rates, Looks Crucial for BTC
Bitcoin shows a weekly increase of 4% amid rising U.S. investor demand, while decentralized exchanges have doubled their trading volumes. Institutional interest in crypto is also shifting, with a potential ether ETF seen as a competitor to Bitcoin ETFs. Aave expands into Sony’s Soneium blockchain, and market trends show mixed but positive movements across assets.
In Asia, Bitcoin seems to have stabilised, yet there’s been a notable uptick over the week, with a 4% increase, as U.S. investor demand begins to rise. Many in the market are looking, perhaps bizarrely, past the anticipated Bank of Japan rate cut, which tends to stir up risk-on sentiments that could buoy BTC prices normally. Instead, the spotlight is on the ‘Coinbase Premium’. This metric, tracked by CryptoQuant, gauges the price disparity between Bitcoin on Coinbase Pro in USD and Binance’s USDT. Analysts have noted, “The Coinbase Premium is gradually rising, indicating increased buying pressure from U.S. investors. “, suggesting whales are also climbing on board.
As for institutional moves, Bitcoin ETF inflows have reached an impressive $386.27 million just this week. That said, there’s chatter about a potential staked ether ETF, which could divert some institutional enthusiasm away from Bitcoin. Youwei Yang, the chief economist at BIT Mining, argues this new ETF could seriously compete for investors’ interests as it offers yield from staking, something Bitcoin ETFs simply don’t provide. Yang emphasised that while speculations around other cryptos exist, Ether remains the primary focus for institutions, ready to jump in when conditions seem favourable.
Meanwhile, the landscape of decentralized exchanges (DEXs) has shifted dramatically. Their trading volumes have surged, climbing from about 6% to approximately 12% of total trading volume in just a year. Notably, in May, DEX volume shot up closer to 25%, particularly driven by enthusiasm around new entrants like Hyperliquid. Now, with crypto-related mergers heating up, it seems DEXs are becoming increasingly relevant.
Even though DEXs might appear to be direct competitors to centralized exchanges (CEXs), OKX President Hong Fang posits otherwise, stating that both serve complementary roles in the market. Fang remarked that while the crypto-native audience seeks reliability from CEXs, they also look to DEXs for innovation. This synergy, she believes, could lead to broader adoption as the regulatory landscape evolves.
Transitioning to policy news, Trump’s CFTC nominee, Brian Quintenz, recently underscored the necessity for Congressional action in enhancing crypto innovation alongside consumer protection during his Senate confirmation hearing. Quintenz, who has previously held roles at the CFTC and in venture capital, remarked that clear guidelines could bolster entrepreneurial efforts while safeguarding the consumer. He did face queries about the current gaps in the CFTC, especially around the absence of Democratic commissioners, though he stepped back from making any commitments in that regard.
In other news, Aave has launched on Sony’s Soneium, an Ethereum Layer-2 blockchain. This expansion involves exploring Aave’s stablecoin, GHO, for various applications. Furthermore, Aave plans to engage in liquidity incentive campaigns with a partner, Astar, in Japan’s blockchain scene, earmarking $4 million for promoting adoption. Soneium’s growing user ecosystem, which includes prominent platforms like Uniswap and Lido, has positioned it as a key player in Web3 applications.
On the market front, Bitcoin trades just under $110k, signalling accumulation as exchange reserves diminish. Ethereum saw a significant jump of 6.9% to $2,803, fueled by substantial ETF inflows and BlackRock’s ETH accumulation streak. Gold prices are edging closer to $3,350 amid improved U.S.-China trade sentiment, while Japanese markets edged upwards with the Nikkei 225 rising by 0.69% in early trading. Meanwhile, the S&P 500 also showed resilience with a 0.6% gain, closing in on record highs, buoyed by bullish investor sentiment and movements at Tesla.
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