Asia Morning Update: Declining BTC Stimulates Growth in Altcoin Trading Volumes

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

Welcome to the Asia Morning Briefing, a daily recap of key stories during U.S. hours, along with market movements and analysis. For an in-depth review of U.S. markets, consult the specific Crypto Daybook for Americas.

As the Asian business day begins, Bitcoin (BTC) is priced over $105,000, reflecting a 1% decrease.

A report from Flowdesk, a digital asset trading company based in Paris, suggests that BTC is currently adopting a tactical stance with its price stabilizing.

According to Flowdesk, as Bitcoin holds steady near its historical peaks, there has been a significant increase in altcoin trading volumes and liquidity.

The firm also pointed out that Bitcoin’s price swings have lessened, even with major economic events on the horizon that usually cause market disruptions.

With Bitcoin close to its peak price, Flowdesk noted a significant uptick in call overwriting, as traders look to capitalize on potential gains while retaining their core Bitcoin investments.

Flowdesk concluded that the trend in altcoins is ongoing, ETF investments are returning, and volatility positioning is shifting towards more tactical and revenue-generating strategies.

In addition, the Market Insight bot indicated that Bitcoin may face downward pressure after encountering strong resistance around $108,800, although persistent interest from institutional investors could provide some floor for the price.

House Republicans Unveil New Crypto Bill Giving CFTC Key Oversight Role

Republicans in the U.S. House have formally introduced the Digital Asset Market Clarity Act, marking their latest initiative to bring regulation to cryptocurrency markets.

This comprehensive 236-page legislation, which follows the previous FIT21 Act, grants the Commodity Futures Trading Commission primary oversight responsibilities for digital commodity markets, sets clear standards for cryptocurrency exchanges, and exempts specific decentralized finance (DeFi) services from the jurisdiction of the Securities and Exchange Commission (SEC).

In a related development, the Senate is concentrating on a distinct bipartisan stablecoin bill that is further along in the process but continues to be debated. With committee hearings on the agenda for next week, lawmakers will publicly address the new House bill, potentially influencing the direction of U.S. cryptocurrency regulations this session.

‘Crypto Mom’ Peirce Says Traders Need to Accept Personal Accountability

Hester Peirce, the head of the U.S. Securities and Exchange Commission’s crypto task force, called on cryptocurrency investors at Bitcoin 2025 to assume personal responsibility for their losses instead of relying on government bailouts.

Peirce highlighted the need for consistency among those in the cryptocurrency space, suggesting that individuals who advocate for freedom must also bear the consequences of their financial decisions, especially in speculative ventures like memecoins.

She pointed out ongoing efforts under Republican leadership to clarify the SEC’s role, asserting that most cryptocurrency tokens do not qualify as securities and thus are not subject to SEC registration unless they directly involve securities. She maintained neutrality on companies that hold digital assets on their balance sheets, as long as they provide adequate disclosure. Despite advances in SEC policy, Peirce underlined that the creation of a federal regulator for retail crypto trading will require explicit legislative action from Congress.

Blockchain Founders Fund Surpasses 200 Investments

The Blockchain Founders Fund (BFF), a venture capital firm based in Singapore that specializes in early-phase Web3 and blockchain ventures, will announce on Friday at the Web Summit in Vancouver that it has exceeded 200 investments, covering more than 160 companies.

Since its founding in 2018, BFF has been recognized for backing innovative projects like Shardeum, an Ethereum-compatible blockchain platform using dynamic state sharding, and Validation Cloud, which seeks to integrate traditional firms with blockchain and AI technologies.

The fund previously revealed in October that it had reached the milestone of 150 investments.

Market Movements:

• BTC: Bitcoin’s current trading price is $105,713 in Asia, after fluctuating between $105,682 and $108,927 in the past 24 hours, with resistance met near the upper limit, indicating possible bearish trends.
• ETH: Ethereum has surged by 6%, reaching a peak of $2,784 before settling around $2,650, as robust trading volumes and institutional positive sentiment outweigh macroeconomic concerns.
• Gold: Gold prices have increased by 0.4%, trading at $3,311 amid a 0.2% contraction in the U.S. economy tied to weaker consumer spending and tariffs.
• Nikkei 225: Japan’s Nikkei 225 index fell by 1.55% as Asia-Pacific markets declined on Friday, influenced by concerns over the U.S. economic slowdown and inflation.
• S&P 500: The S&P 500 index recorded a 0.4% gain, closing at 5,912.17 on Thursday, largely driven by Nvidia’s performance, although investor caution persisted amid ongoing discussions about Trump’s “reciprocal” tariffs.

Elsewhere in Crypto:

• SEC Aims to Dismiss Long-Running Lawsuit Against Binance
• Arthur Hayes Predicts Ethereum Could Surge in Price This Year
• Tokenized equities expected to surpass stablecoins: Backed CEO
• Details emerge on the $400 million Coinbase breach involving a call center in India and young hackers
• Russia Allows Financial Institutions to Offer Crypto-Linked Products to Qualified Investors