Asia Morning Briefing: Bitcoin Builds Momentum, Balancing Leverage with Patience

Bitcoin Maintains Position Above $105K Amid Political Unrest and Growing Institutional Demand

As markets in Asia open on Wednesday, Bitcoin (BTC) is trading slightly above $105,500, retreating from its earlier peak of $107,000 during the U.S. trading session.

Despite unexpected geopolitical developments—such as a surprise U.S. strike on Iran—Bitcoin continues to hold steady as a store of value. CoinDesk data indicates BTC has remained relatively stable over the past month, with a modest gain of approximately 1%.

Unlike the rapid rally past $100K in December 2024, which led to substantial profit-taking, long-term holders now appear more confident in holding their positions. Glassnode’s weekly report highlights that a record 14.7 million BTC are held by long-term investors who show limited selling activity near all-time highs.

The adjusted Spent Output Profit Ratio (aSOPR) suggests that most selling activity is driven by short-term traders rather than long-term holders.

Glassnode’s Liveliness metric continues to decline, signaling that older coins are staying off the market.

Institutional interest remains robust, with QCP Capital reporting $2.2 billion in net inflows into Bitcoin spot ETFs last week. Investors such as Strategy and Metaplanet are actively adding to their positions.

This steady inflow is helping to strengthen Bitcoin’s market base, with realized capitalization rising to $955 billion, reflecting genuine capital accumulation rather than speculative trading.

Nevertheless, risks remain. QCP notes an increase in leveraged long positions and positive funding rates across major perpetual futures contracts, indicating elevated speculative activity.

Glassnode cautions that a significant price movement, either upward or downward, may be necessary to trigger more selling pressure. Currently, a balance exists between steadfast long-term holders and leveraged short-term traders.

Following Senate approval of the “Big Beautiful Bill,” Bitcoin’s price has remained range-bound, with long-term holders reluctant to sell and speculators increasing leveraged bets.

Analysts are closely watching for a catalyst that could lead to a decisive market move.

Additional News:

• Figma’s Bitcoin ETF Holdings: In its IPO filings, Figma revealed a $70 million investment in the Bitwise Bitcoin ETF, with plans to expand BTC purchases using USDC reserves.
• DDC Enterprise Raises Capital: Hong Kong’s DDC Enterprise raised $528 million to acquire 5,000 BTC over the next three years.
• DeFi Development Corp. Convertible Note Offering: The Solana-focused firm plans to raise $100 million through a convertible note offering to increase SOL holdings.

Market Snapshot:

• BTC: Holding steady near $106K with limited activity from long-term holders.
• ETH: Faced heavy selling pressure after failing to break $2,522, closing with a volatile 4.5% range.
• Gold: Gained over 1% amid a weaker dollar and ongoing trade uncertainties, with spot prices reaching $3,357.85.
• S&P 500: Closed slightly lower, with the index dropping 0.11% to 6,198.01 as investors rotated out of tech stocks.