Bitcoin Steady Near $110K; Coinbase Premium Signals Growing U.S. Demand Ahead of BoJ Decision
Bitcoin hovered around $109,700 at the start of Wednesday’s Asian trading session, showing a calm start while preserving a strong 4% gain over the past week.
The anticipated Bank of Japan interest rate cut has yet to move crypto markets, defying the usual correlation between low rates and heightened risk-taking. Instead, market focus has shifted to the Coinbase Premium — the price gap between Coinbase Pro’s BTC in USD and Binance’s USDT markets — signaling increased dollar-driven demand from U.S. investors, according to CryptoQuant.
“The Coinbase Premium’s steady rise reflects growing buying interest among whales and U.S. retail investors,” said CryptoQuant analysts.
This buying is echoed by substantial Bitcoin ETF inflows, reaching $386 million this week, per SoSoValue.
However, some experts caution that the launch of an Ether staking ETF could attract capital away from Bitcoin ETFs. Youwei Yang from BIT Mining pointed out that the yield advantage of ETH staking ETFs could draw institutional investors.
“Bitcoin’s ETF hype has propelled much of its rally,” Yang said. “But Ethereum’s ETF offerings, combined with staking yields, may make it more attractive for institutions.”
Meanwhile, investors await the BoJ’s official policy move, which some, including Arthur Hayes, believe could trigger a new parabolic surge in bitcoin.
DEX Trading Volume Doubles, Highlighting Innovation and Market Evolution
Data from Messari reveals DEX trading volume has nearly doubled over the past year, now representing roughly 12% of total crypto volume, with May volumes approaching 25%, spurred by platforms like Hyperliquid.
OKX’s Hong Fang views centralized and decentralized exchanges as complementary forces driving crypto’s growth and regulatory progress.
Top Headlines
- CFTC Nominee Brian Quintenz Calls for Congressional Leadership on Crypto
Quintenz advocated for clear legislative frameworks to balance innovation with consumer protection. - Aave Expands to Sony-Backed Ethereum Layer-2, Soneium
Aave’s deployment on Soneium marks a strategic push into Japan’s crypto ecosystem, leveraging partnerships with projects like Astar to grow DeFi adoption.
Market Recap
- BTC: Hovering near $110K amid decreasing exchange reserves and increased accumulation.
- ETH: Climbs 6.9%, boosted by institutional ETF interest.
- Gold: Holding firm near $3,350 amid trade optimism.
- Nikkei 225: Gains 0.69% on positive trade developments.
- S&P 500: Advances 0.6%, supported by U.S.-China trade optimism and Tesla news.
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