You Won’t Believe What Just Happened to Bitcoin’s Price

Asia Morning Briefing: US Loads Up, Germany Cashes Out as <a href="https://jpygbp.com/btc-usd/">BTC</a> Holds Near $119K

What to know:

Bitcoin continues to break records, trading near $119,500, with significant institutional inflows in the U.S. but outflows in Germany.
Vanguard, once skeptical of Bitcoin, has become a major holder through its investment in MicroStrategy.
Bitcoin’s performance outpaces luxury watches, driven by institutional interest and macroeconomic factors.

Good Morning, Asia. Here’s what’s making news in the markets:

As bitcoin

trades near $119,500, having just recently broken through another all-time high of $120,000, digital asset investment products are also breaking records for inflows – but there’s a regional disparity.

As reported by CoinShares, US-based investment funds attracted approximately $3.74 billion, whereas German funds experienced outflows totaling about $85.7 million. This trend highlights a significant shift in the global institutional investment attitude.

The strong interest in institutions from the U.S., particularly evident with Vanguard, is shown through its changing view on crypto investments. Although it previously categorized bitcoin as an immature asset class, this $10 trillion asset manager has now become the largest shareholder of Michael Saylor’s MicroStrategy (MSTR), which indirectly makes it one of the biggest holders of Bitcoin in traditional finance, as pointed out by Presto Research in their recent market update.

Currently, it’s worth noting that QCP Capital underscores the fact that institutional interest is quite strong, as evident by approximately $2 billion flowing into Bitcoin Exchange-Traded Funds (ETFs) in just one week.

However, the derivatives market seems to indicate a more complex strategy is at play. Long positions using leverage are growing rapidly, with funding rates reaching nearly 30% and open interest exceeding $43 billion – figures not seen since Bitcoin reached $100k in January. This aggressive positioning prompts warnings, reminding us of the significant $2 billion liquidation incident in February.

“Froth is building,” QCP warns.

BTC Continues to Outpace Luxury Watches

Bitcoin

is up 27.87% year-to-date and 13.22% in the past month, easily outperforming the luxury watch market’s modest +4.5% rebound in Q2, according to a recent report co-authored by Morgan Stanley and WatchCharts.

The significant profits were primarily seen in the iconic models such as Daytona, Nautilus, Royal Oak, while brands like Panerai, Breitling, and IWC didn’t perform as well. Stock levels for watches priced under $5,000 are still high compared to history, and sales turnover in this price range is moving slowly.

The report indicates that price recuperation is primarily confined and focused, stemming from “heightened attention from elite collectors” and an “enhanced global readiness to take risks.

In a similar vein, both Bitcoin and the watch industry often thrive under “monetary policies that stimulate growth” and during phases where wealth is being generated abundantly.

However, the distribution of speculative funds isn’t balanced equally. Bitcoin, due to its association with macroeconomic factors, large-scale investments, and constant liquidity, has become the favored high-risk asset, drawing in more inflows compared to other assets.

During the pandemic, Bitcoin (BTC) and luxury watches shared a connection as they both profited from the influx of easy money and speculation. However, this relationship weakened in late 2023 when the United States approved the trading of spot Bitcoin Exchange-Traded Funds (ETFs).

Bitcoin has evolved over time into an asset that responds to macroeconomic factors and is supported by institutions, whereas watches have reverted back to focusing on fashion aspects.

Market Movements:

Bitcoin momentarily reached nearly $123,000 but then retreated, as cryptocurrency-linked stocks continued to see modest growth. Analysts noted that the market still falls short of being overly enthusiastic, with one expert suggesting that Bitcoin’s current $2.5 trillion market value might eventually align with gold‘s massive $22 trillion worth.

In early trading, ETH spiked over $3,079 due to robust buying activity, but later dipped in the afternoon, ending close to $3,011. This price action resembles a typical breakout-pullback pattern where the support remained firm above the crucial $3,000 threshold.

Gold experienced a minor 0.1% drop following its three-week peak, primarily due to fresh tariff concerns expressed by President Trump, heightened attention towards trade negotiations, and the scrutiny of U.S. economic data. Meanwhile, silver reached an elevation not seen since September 2011.

In the realm of crypto investments, as I gaze at the market screens this Tuesday morning, Asia-Pacific stocks present a mixed picture. Despite President Trump’s recent tariff adjustments, investors seem unfazed and instead shift their focus towards impending Chinese economic data. Meanwhile, my Japanese portfolio remains steady, with the Nikkei 225 holding its ground without significant fluctuations.

RBC Capital Markets has increased its predicted S&P 500 level for 2025 to 6,250, up from 5,730 previously. However, unlike Goldman and BofA, they anticipate minimal further gains from the current levels, as the index is already over 6,280 as of July 11.

Elsewhere in Crypto

U.S. Banking Regulators Issue Crypto ‘Safekeeping’ Statement, Not Pushing New Policy (CoinDesk)
China’s Stablecoin Studies Hint at ‘Tiered’ But Fractured Approach (Decrypt)
Grayscale Files Confidential Submission for IPO With SEC (CoinDesk)

2025-07-15 05:46