Asia Morning Market Update: Bitcoin Near $110K as Coinbase Premium Outshines BoJ Rate Cuts
Bitcoin (BTC) opened steady at around $109,700 in early Asian trading on Wednesday, maintaining a 4% weekly gain despite a muted reaction to the expected Bank of Japan rate cut.
While traditionally, easing by the BoJ would boost risk appetite and lift assets like bitcoin, market watchers are paying closer attention to the Coinbase Premium — a metric showing the price difference between BTC on Coinbase Pro and Binance USDT markets. This premium reflects strong dollar-based demand for bitcoin, particularly from U.S. investors, according to CryptoQuant.
Analysts noted, “The Coinbase Premium has been rising steadily, signaling robust buying pressure from U.S. whales and retail investors alike.”
Bitcoin ETFs are also drawing solid inflows, with $386 million entering these funds so far this week, as per SoSoValue data.
Still, some warn the approval of a staking Ether ETF could pull institutional money away from Bitcoin ETFs. Youwei Yang of BIT Mining explained that ETH ETFs offering staking yield have a competitive edge, potentially cooling BTC ETF enthusiasm.
“Bitcoin’s recent rally rode on ETF excitement,” Yang said. “But with Ethereum’s growing ETF presence and yield prospects, institutions may pivot their attention.”
Crypto veterans are now watching for the official BoJ announcement, expecting it could spark a major Bitcoin rally. Influencers like Arthur Hayes remain optimistic about the potential upside.
DEX Volume Nearly Doubles as Innovation Drives Trading Shift
Decentralized exchanges continue to make inroads, with DEX trading volumes doubling over the last year, now accounting for up to 12% of total crypto volume, and even reaching nearly 25% in May due to rising interest in platforms like Hyperliquid.
OKX’s Hong Fang highlighted the synergy between DEXs and centralized exchanges, emphasizing that both are essential to crypto’s ongoing growth and regulatory maturity.
Crypto Industry News
- Brian Quintenz Emphasizes Congressional Role for Crypto Rules
CFTC nominee Brian Quintenz urged Congress to take charge in creating clear regulatory frameworks that balance innovation with consumer protection. - Aave Launches on Sony’s Ethereum Layer-2 Blockchain Soneium
The DeFi giant Aave expands into the Japanese market through Soneium, integrating its stablecoin GHO and collaborating with local blockchain projects like Astar to boost adoption.
Market Highlights
- BTC: Consolidating near $110K amid strong accumulation signals.
- ETH: Surges nearly 7%, supported by institutional ETF inflows.
- Gold: Holds steady near $3,350 on trade optimism.
- Nikkei 225: Up 0.69% on positive U.S.-China trade news.
- S&P 500: Climbs 0.6%, driven by trade talk optimism and Tesla updates.
