Good Morning, Asia. Here's what's making news in the markets: Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas. Bitcoin staged a sharp recovery over the past week, rebounding from a dip below $114,000 to trade near $121,000, in what Glassnode described in a recent report as a shift from “seller exhaustion to a strong rebound near recent ATHs.” The rally, however, came without a surge in spot market participation. Glassnode data shows spot trading volumes fell 22% to $5.7 billion, close to their statistical low band, suggesting the rebound has been driven more by positioning shifts than deep conviction buying. The Spot Cumulative Volume Delta flipped 94% toward buy pressure, a sign that aggressive selling has been replaced by renewed demand, but not yet across a broad base of traders. On the derivatives side, leveraged traders re-engaged aggressively, Glassnode detailed in its report. Perpetual Cumulative Volume Delta, a measure of the buy-sell pressure in perps, jumped 88%, funding rates remained elevated, and options open interest climbed 6.7% to $42.4 billion. Yet, volatility pricing collapsed by almost a third, indicating a degree of complacency that has historically preceded large market moves. ETF flows offered some relief, with U.S.-listed spot bitcoin ETF outflows halving to $311 million from $686 million the prior week. Even so, ETF trade volume fell 27.7% to $13.7 billion, keeping activity near its low band. QCP Capital framed the weekend surge, which briefly pushed BTC above $122,000, as a function of thin order books and a broader risk-on shift in global markets. “Crypto staged an impressive comeback over the weekend during thin, low-liquidity trading hours,” the Singapore-based trading firm wrote, noting that the bounce aligned with a rebound in U.S. equities and growing expectations for a September Fed rate cut. While on-chain activity improved, active addresses jumped 8.4% to 793,000, and fee volume rose 10%. Glassnode cautioned that elevated profitability levels could quickly turn into selling pressure if sentiment shifts. With 94.1% of supply in profit and the realized profit-to-loss ratio climbing to 1.9, the market may be nearing a point where profit-taking accelerates. The combination of thin liquidity, bullish derivatives positioning, and macro-driven optimism leaves Bitcoin primed for volatile moves as it approaches all-time highs, with the next test likely coming from Tuesday’s U.S. CPI release. Polymarket traders lean toward a modest uptick in line with consensus that would likely keep BTC consolidating, with hotter prints posing a short-term headwind by delaying Fed cuts and softer readings offering a potential breakout catalyst if ETF flows and spot activity strengthen. Market Movers BTC: Bitcoin is trading at $118k as traders pull back and position themselves for the possibility that Tuesday's CPI report might break BTC's momentum. ETH: Ethereum is trading at $4200. Analysts say that ETH's rally is partially due to increased capacity on-chain and lower DeFi costs. Gold: Gold slid to $3,355.13 as upbeat risk sentiment and Trump’s pledge to exclude gold from tariffs weighed on safe-haven demand, though losses were cushioned by rising Fed rate cut bets ahead of this week’s U.S. inflation data. Nikkei 225: Asia-Pacific markets rose Tuesday, with Japan’s Nikkei 225 hitting a record high after the U.S.-China trade truce was extended, while investors awaited the Reserve Bank of Australia’s expected rate cut. S&P 500: U.S. stocks eased, with the S&P 500 down 0.2% and just under its record, as investors await new inflation data .Meanwhile, Citigroup and UBS lifted their year-end S&P 500 targets, citing easing policy risks and solid earnings, with Citi raising its forecast to 6,600 and UBS to 6,100. Elsewhere in Crypto Jeff Bezos' Blue Origin Now Accepts Bitcoin, Ethereum and Solana for Spaceflights (Decrypt) Rumble Gains on Plans to Acquire Tether-Affiliated Northern Data (CoinDesk) Senate Banking Committee Democratic staff slam GOP crypto draft bill as ‘superhighway’ for dodging regulation (The Block)
