Asia Trading Update: Altcoin Season Heats Up with Bitcoin in Pause Mode

Altcoin Rotation Gains Traction as Bitcoin Stalls; Crypto Crime Hits Record $2.17B in 2025

Markets Open to ETH-Led Rally as BTC Cools

Asian crypto markets kicked off Thursday with bullish momentum shifting from Bitcoin to altcoins. BTC held above $120,500, up 1.7% on the day, while Ethereum (ETH) climbed over 3%, targeting the $3,500 level.

Market maker Enflux sees signs of a broader rotation. With BTC positioning looking stretched, traders are rotating into higher-risk altcoins as Ethereum shows relative strength—often a leading signal for alt-season.

“ETH flows are accelerating, and meme coins, CeFi tokens, and other high-beta assets are starting to catch a bid,” Enflux noted, pointing to Caldera’s 90% daily surge and rising volumes in Curve and FLOKI.

XRP led the charge, blasting through its 2018 high at $3.50, reinforcing the view that appetite for risk is returning fast.

Institutional Inflows and On-Chain Strength Fuel ETH Momentum

Backing the trend, Coinbase and Glassnode highlighted $1.7 billion in Q2 inflows to ETH ETFs, reversing Q1 outflows. On-chain metrics support the rebound: Ethereum’s NUPL flipped from capitulation to optimism, and 90% of the supply is now in profit—up from under 40% earlier this year.

Activity on Ethereum Layer-2s is also heating up, with transactions up 7% and fees down nearly 40%, reflecting improved usage and network efficiency.

Still, Coinbase emphasized selectivity: not all altcoins will perform equally well. “Idiosyncratic factors will drive outcomes,” the report warned.

Crypto Crime Surges to All-Time High with $2.17B Stolen in 2025

New data from Chainalysis paints a troubling picture for crypto security. More than $2.17 billion has been stolen so far in 2025—making it the worst year on record for digital asset crime.

The bulk of that loss comes from a single catastrophic hack: $1.5 billion siphoned from ByBit, reportedly by North Korean hackers. That one breach accounts for nearly 70% of all service-based thefts this year.

Chainalysis says the pace of crypto theft is accelerating. In 2025, it took just 142 days to exceed $2B in losses—far quicker than the 214 days it took in 2022.

While exchanges remain prime targets, a rising share of losses now stem from personal wallets, which accounted for over 23% of total thefts. Criminals are increasingly leveraging AI-powered phishing and social engineering tactics.

More concerning is a rise in physical “wrench attacks”—violent robberies aimed at forcing access to wallets. These attacks spike during bull markets, suggesting opportunistic behavior tied to Bitcoin rallies.

With $8.5 billion in stolen assets still on-chain, Chainalysis warns of more advanced—and possibly more violent—tactics ahead unless the industry raises its security game.

Market Highlights

• BTC: Trades at $120,500, buoyed by reports President Trump may allow 401(k) plans to invest in crypto and alternative assets.
• ETH: Rises 3.1% to $3,477.70, showing strength amid ETF inflows and AI-driven policy shifts like the GENIUS Act.
• XRP: Breaks $3.50 for the first time since 2018, leading altcoin gains.
• Gold: Drops nearly 1% to $3,315 as strong U.S. macro data props up the dollar.
• Nikkei 225: Inches up 0.075% Thursday and opens Friday with a 0.3% gain above 40,000.
• S&P 500: U.S. equities close at record highs on upbeat earnings and economic momentum.