Asia Morning Insight: Bitcoin Rising as the New ‘Generational Asset’ as Speculators Drop Rolexes
Ethereum Surges Beyond $2,600 Amid Institutional Demand and DeFi Growth, but User Expansion Remains Tepid
Ethereum climbed above $2,600 in early Asian trading on Tuesday, rising 3.7% to decisively break past its previous resistance near $2,500 after a period of consolidation, according to CoinDesk Research’s AI-driven technical analysis.
This rally is underpinned by strong institutional interest, with spot Ethereum ETFs attracting $248 million in net inflows last week, led by BlackRock’s iShares Ethereum Trust. DeFi activity on the network is also gaining momentum, as total value locked (TVL) increased 3.6% over the past day to $64.37 billion, per DeFi Llama data.
Despite these positive indicators, Ethereum’s growth faces headwinds. Active Ethereum addresses remain largely unchanged at approximately 406,000, slightly down from about 430,000 a year ago — signaling a plateau in user engagement.
Stablecoin movements paint a nuanced picture: while established coins like USDT and USDC hold steady, newer players such as Ethena’s USDe and BUIDL are experiencing robust growth, suggesting shifts within the stablecoin ecosystem on Ethereum.
Overall, Ethereum’s price rally benefits from strong institutional backing and growing DeFi use, but flat retail participation and stagnant address counts may limit momentum in the near term.
Bitcoin Outperforms as Luxury Watch Market Diverges
Bitcoin and luxury watches, once closely linked during the pandemic-driven stimulus era, have recently charted very different courses.
Bitcoin surged almost 57% over the past year, while the luxury watch index fell about 4%, based on CoinDesk and WatchCharts.com data.
The correlation broke down post-mid-2023 as Bitcoin solidified its status as a serious institutional asset, while demand for luxury watches cooled.
OKX Global’s Chief Commercial Officer Lennix Lai credits Bitcoin’s rise to greater institutional adoption and its durability as a “generational asset” immune to physical risks.
Meanwhile, the luxury watch market has shown modest recovery, with a 0.3% gain in the last three months, driven more by economic factors like tariffs and rising gold prices than by renewed crypto interest, notes Watches.io founder Jake Plonskier.
He adds that crypto wealth has introduced younger buyers into the luxury watch market, expanding its demographic reach.
Circle Files for IPO to Raise Up to $625 Million
Circle, issuer of the USDC stablecoin, has filed for an IPO on the New York Stock Exchange under ticker “CRCL,” proposing to sell 24 million shares priced between $24 and $26.
The offering includes 9.6 million new shares, potentially raising $250 million, alongside 14.4 million shares from existing shareholders.
Cathie Wood’s ARK Investment has signaled plans to purchase up to $150 million of shares. The IPO is managed by J.P. Morgan, Citigroup, and Goldman Sachs.
This move follows earlier failed SPAC and acquisition attempts.
Marathon Digital CEO Urges U.S. to Mine Bitcoin for Strategic Reserve
Speaking at Bitcoin 2025, Marathon Digital CEO Fred Thiel called on the U.S. government to actively mine Bitcoin domestically, leveraging excess hydroelectric power to fulfill President Trump’s strategic bitcoin reserve initiative.
Currently, the reserve holds about 200,000 bitcoins seized from forfeitures, but Thiel stressed the importance of scaling up acquisitions.
Senator Cynthia Lummis backs broader plans to convert government gold certificates into bitcoin over several years through her BITCOIN Act.
However, legislative progress remains challenging amid other congressional priorities.
Market Overview
- BTC: Bitcoin bounced from $107,604 to test resistance near $110,000, supported by easing EU trade tensions and long-term investor accumulation.
- ETH: Ethereum’s price surpassed $2,600 amid ETF inflows and rising DeFi activity, though user growth is flat.
- Gold: Trading at $3,315.30 per ounce, down 0.77%, with mixed near-term outlook amid trade uncertainties.
- Nikkei 225: Opened at 38,003.67, expected to gain about 5% by year-end despite volatility.
- S&P 500: Closed up 2.1%, boosted by delayed U.S.-EU tariff concerns and improved trade outlook.
Share this content:
