Asia Crypto News: BTC Rally Paused as Market Analysis Suggests Overheating

Bitcoin’s recent rally seems to have paused at around $105,000, with analysts warning the market may be overheated. High-leverage trader James Wynn suffered a significant liquidation, losing over $17 million. Brazilian fintech Méliuz also saw its shares drop 8% after announcing a $78 million equity raise to buy Bitcoin. In New York, the city comptroller rejected a Bitcoin-backed bond proposal by Mayor Adams, citing financial concerns.

Bitcoin’s impressive price rally seems to have hit the brakes, stalling around $105,000. Analysts are suggesting that while the market remains bullish overall, there’s evidence pointing to an impending short-term top. Data from CryptoQuant indicates that demand has surged to 229,000 BTC in the past month, nearing levels not seen since December 2024. Moreover, an uptick in whale-held balances by 2.8% hints at a potential slowdown in accumulation.

The report highlights key resistance at the $120,000 mark. This level relates to a price band that, if reached, would mean a 40% unrealised profit for many traders—a significant milestone that has historically coincided with market tops. While CryptoQuant’s “Bull Score Index” sits optimistically at 80, showing continued bullish momentum, rising demands may prompt a cooling-off before any further leaps.

In notable trading developments, James Wynn, a high-leverage trader, recently faced a shocking liquidation that left him with a mere $23 after losing upwards of $17 million. Wynn’s trading style, which has included bets on Bitcoin and quirky assets like PEPE and FARTCOIN, has made him a well-known figure. His losses stemmed from an aggressive long position on BTC that faltered amid market volatility.

On social media, Wynn maintained an upbeat attitude about his situation, assuring followers he will bounce back, stating, “I’ll run it back, I always do.” This reflects a broader mindset found in some crypto circles that embrace risk, seeing it as part of the game.

In Brazil, fintech company Méliuz announced plans to raise $78 million through a public equity offering to invest exclusively in Bitcoin, aiming to bolster its position in the market. After this announcement, the company’s shares took a dive of over 8%. The offering consists of 17 million common shares, with options to increase to 51 million, and these come with subscription warrants allowing future stock acquisitions at predetermined prices.

Currently, Méliuz holds 320.2 BTC, previously dedicating a significant portion of its cash reserves to Bitcoin earlier this year. Trading for the new subscription warrants is slated to kick off on June 16, with shares expected to be settled by June 18.

In political news, New York City Comptroller Brad Lander publicly shot down Mayor Eric Adams’ proposal to issue municipal bonds backed by Bitcoin, known as the “BitBond.” Lander called the plan “legally dubious and fiscally irresponsible,” raising concerns over the volatile nature of cryptocurrencies for funding essential city projects. He further stressed potential conflicts with federal tax laws and city regulations, warning such a move might jeopardise investor trust in the city’s financial standing.

Looking at market movements today, Bitcoin has shown resilience, launching a V-shaped recovery phase with noted price points between $103,813.37 and $105,305.75. Ethereum also displayed signs of strength, climbing from support levels of $2,472.84 to $2,527.53 thanks to heightened buying activity. On the commodities front, gold gained 0.6% to settle at $3,311.66, reflecting ongoing investor caution amid trade uncertainties.

The Nikkei 225 index fell by 0.89% as markets in the Asia-Pacific region reacted to news of increased steel tariffs announced by former President Trump. US stock futures began June lower after May delivered the strongest performance for the S&P 500 since November 2023, with market sentiment influenced by mixed signals over tariffs from recent court rulings.