BTC vs Luxury Timepieces: One Is a 'Heritage Investment'

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

Asia Morning Briefing

This is your daily roundup of key stories relevant during U.S. hours, including market movements and analyses.

Ethereum climbed over $2,600 in early trading hours across Asia, showing a 3.7% increase and decisively surpassing its prior resistance of approximately $2,500 after an extended period of price consolidation.

This upward trend is backed by strong trading volume and considerable institutional interest, highlighted by $248 million in net inflows into Ethereum spot ETFs last week, notably from BlackRock’s iShares Ethereum Trust. Additionally, the decentralized finance (DeFi) sector is gaining traction, with Ethereum’s total value locked (TVL) increasing by 3.59% in the past day to reach $64.37 billion.

Nevertheless, the rally may encounter obstacles. Currently, Ethereum has around 406,180 active addresses, a figure that has barely shifted from the approximately 430,000 active addresses observed a year earlier, reflecting limited user growth.

Mixed signals arise from stablecoin transactions; the traditional favorites USDT and USDC show stable trends, while newer stablecoins like Ethena’s USDe and BUIDL are experiencing stronger growth patterns, indicating changes within Ethereum’s stablecoin landscape. Despite the positive momentum and institutional support, subdued participation from retail investors and lackluster user growth might limit this rally in the near term.

Bitcoin Soars While Luxury Watches Stall

Bitcoin (BTC) and luxury watches, which surged during the pandemic supported by stimulus funds and market speculation, have witnessed a notable divergence over the past year. Market data indicates that Bitcoin surged by 56.9%, while the luxury watch index from WatchCharts.com dipped by 4%.

Earlier this year, both Bitcoin and luxury watches displayed a highly correlated price movement, buoyed by significant liquidity injected into the markets by central banks and governments. However, their trajectories have clearly diverged since then.

Marathon Digital’s Chief Commercial Officer, Lennix Lai, believes that the sustained rise in Bitcoin is primarily driven by greater institutional adoption, affirming it as a credible investment asset.

Conversely, the secondary market for luxury watches has significantly cooled since its pandemic peak. Lai observes, “Serious collectors remained interested in watches, while speculators have largely shifted focus. Bitcoin is regarded by many investors as a generational asset, unlike watches, which can be damaged or lost if not properly cared for.”

Nevertheless, signs of a slight recovery in the luxury watch market have been noted recently, with a 0.3% increase over the last three months.

Jake Plonskier, the founder of Watches.io, attributes this increase to external economic factors rather than renewed interest from the cryptocurrency sector. He points to rising tariffs and increasing gold prices as influential forces.

“Gold and silver often serve as indicators for the watch market,” Plonskier remarked, referencing Rolex’s decision in January to raise retail prices for its gold models by 14%.

He also notes that cryptocurrency wealth has opened new avenues for acquiring luxury watches. “Now, younger men have the financial ability to purchase brands like Patek Philippe and Audemars Piguet, which traditionally weren’t accessible to this demographic.”

Circle Prepares for IPO Filing

Circle Internet Group, the creator of the USDC stablecoin, has submitted its application for an initial public offering (IPO) on the New York Stock Exchange, aiming to list under the ticker “CRCL” and offering 24 million Class A shares priced between $24 and $26.

The firm intends to provide 9.6 million shares, potentially raising close to $250 million, while a further 14.4 million shares will be provided by existing stakeholders, which could generate around $375 million.

ARK Investment, led by Cathie Wood, has expressed interest in acquiring $150 million’s worth of shares during this IPO, which is being facilitated by joint lead bookrunners J.P. Morgan, Citigroup, and Goldman Sachs.

This IPO follows previous attempts that did not succeed, including a failed SPAC deal in 2021 and an initial proposal for a $5 billion sale to platforms like Coinbase or Ripple.

Marathon Digital CEO Advocates for Government Bitcoin Mining

Marathon Digital’s CEO, Fred Thiel, has called on the U.S. government to initiate its own Bitcoin mining operation to implement President Trump’s directive for a strategic Bitcoin reserve, suggesting that existing surplus hydroelectric power could facilitate local mining efforts.

During the Bitcoin 2025 conference, Thiel stressed the importance of taking actionable steps beyond the current strategy of utilizing approximately 200,000 seized bitcoins from various government forfeitures. Senator Cynthia Lummis supports this vision through her proposed BITCOIN Act, which recommends converting unproductive government gold certificates into Bitcoins to significantly enhance the reserve.

However, Lummis acknowledges that substantial legislative obstacles remain, referencing a general lack of understanding of Bitcoin among congressional members and competing legislative priorities regarding stablecoins and market structure reforms.

Market Movements:

BTC: Bitcoin rebounded effectively from a dip, reaching $107,604 and stabilizing just below the significant resistance point of $110,000 due to easing tensions in EU trade and ongoing accumulation by long-term investors.
ETH: Ethereum decisively surpassed $2,600, driven by substantial institutional ETF inflows and an uptick in DeFi activities, although stagnant growth in active addresses may limit further increases.
Gold: Currently priced at $3,315.30 per ounce, gold has seen a decrease of 0.77%. Citi has raised its short-term forecast to a range of $3,100 to $3,500 amid ongoing trade uncertainties but remains cautious in the long term due to anticipated economic improvements and potential Federal Reserve rate cuts.
Nikkei 225: Japan’s Nikkei 225 opened at 38,003.67 and is projected to rise approximately 5% to 39,600 by year-end, as determined by a Reuters poll, on the backdrop of eased U.S. trade concerns, although near-term volatility is anticipated.
S&P 500: The S&P 500 index finished about 2.1% higher on Tuesday, propelled by optimism regarding the delayed rollout of U.S.-EU tariffs and improved trade agreement prospects.