Asia Market Update: Altcoin Rotation Builds as Bitcoin Cools, Crypto Crime Hits Record $2.17B
Altcoin Surge Gains Momentum Amid BTC Slowdown
Asian markets opened Thursday to signs of a shifting crypto landscape. Bitcoin (BTC) climbed 1.7% in the past 24 hours to trade above $120,500, while Ethereum (ETH) extended its rally with a 3% gain, approaching the $3,500 mark.
According to market maker Enflux, profit-taking in BTC is fueling a rotation into high-beta altcoins. The firm pointed to signs of stretched positioning in BTC, with rising attention turning to ETH and speculative segments like meme coins and centralized finance (CeFi) tokens.
“We’re watching closely as traders shift into altcoins with greater upside potential,” Enflux wrote in a client note. Tokens like Caldera surged 90% in a day, while increased trading in Curve and FLOKI suggests a return of risk appetite. XRP, meanwhile, broke through its long-standing $3.50 resistance, leading the breakout.
Enflux added that improving bid-side depth in altcoins, paired with rising ETH flows, sets the stage for a broader altcoin rotation in the coming sessions.
Ethereum Fundamentals Strengthen Institutional Thesis
Supporting the altcoin narrative, Coinbase and Glassnode’s latest Charting Crypto report showed Ethereum ETFs attracted $1.7 billion in Q2 inflows, reversing losses from earlier in the year.
Key on-chain metrics are also flashing bullish signals. Ethereum’s Net Unrealized Profit/Loss (NUPL) flipped from “capitulation” to “optimism,” and 90% of ETH supply is now in profit—up from less than 40% in Q1.
Layer-2 activity is also surging. L2 transactions rose 7%, while network fees dropped 39%, indicating improved scalability and healthier ecosystem activity.
Still, Coinbase cautioned that altcoin performance will remain selective. “Success will depend on each token’s fundamentals and ecosystem strength,” the report noted.
Crypto Crime Sets New Record as $2.17B Stolen in 2025
Blockchain analytics firm Chainalysis reported that crypto theft has reached a historic high in 2025, with over $2.17 billion stolen so far—surpassing all previous records.
A single massive breach accounted for the bulk of losses: a $1.5 billion hack of crypto exchange ByBit, allegedly carried out by North Korea–linked hackers. The event represents nearly 70% of all platform-related thefts this year.
Chainalysis warned that thefts are accelerating. It took just 142 days in 2025 to breach the $2 billion mark, compared to 214 days in 2022, the previous worst year on record.
While major exchanges remain targets, individual users are increasingly vulnerable. Over 23% of all thefts this year came from personal wallets, driven by AI-powered phishing campaigns and social engineering attacks.
Another alarming trend: a spike in “wrench attacks”, where criminals physically assault victims to gain access to digital assets. These attacks often increase during BTC rallies, suggesting opportunistic violence in bull markets.
With more than $8.5 billion in stolen assets still sitting on-chain, Chainalysis warned that without better security standards, the second half of 2025 could bring more complex—and violent—crypto crimes.
Market Snapshot
- Bitcoin (BTC): Rises 1.7% to trade above $120,500 following reports President Trump is preparing an executive order allowing 401(k) accounts to invest in crypto and other alternative assets.
- Ethereum (ETH): Climbs 3.1% to $3,477.70 amid strong inflows and optimism driven by the GENIUS Act and ETF demand.
- XRP: Breaks above $3.50, surpassing its 2018 high as altcoin interest accelerates.
- Gold: Drops nearly 1% to ~$3,315 after strong U.S. retail sales and labor data boosted the dollar.
- Nikkei 225: Japan’s index gained 0.075% Thursday, then rose another 0.3% Friday to cross the 40,000 mark.
- S&P 500: U.S. stocks closed at record highs Thursday, buoyed by earnings and strong economic data.
