Asia Morning Briefing: Bitcoin’s Thin-Liquidity Bounce Raises Questions on Staying Power

Key Points

1. Bitcoin rebounded sharply over the past week, but trading volumes fell 22% to $5.7 billion, indicating weak conviction behind the rally.

2. U.S.-listed spot bitcoin ETF outflows halved to $311 million, though ETF trade volume declined 27.7% to $13.7 billion.

3. Glassnode noted that 94.1% of Bitcoin supply is in profit, suggesting potential profit-taking could accelerate.

4. The market awaits U.S. CPI data, which could influence Bitcoin's momentum, with hotter prints delaying Fed rate cuts and softer readings possibly boosting prices.

5. Ethereum rose to $4,200, supported by increased on-chain capacity and lower DeFi costs, while gold slid amid improved risk sentiment.