Good morning, Asia. Here’s what makes news in the markets:
Welcome to Asia Morning Briefing, a daily overview of top stories during the US HOURS and an overview of market movements and analysis. For a detailed overview of US markets, see Coindesk’s Crypto Doybook Americas.
Digital Asset Treasury (Dats) Companies – companies that put Bitcoin in the balance – were the city under BTC Asia in Hong Kong.
But business recording of Bitcoin can be a double -edged sword, says Alessio Quaglini, CEO and co -founder of the Crypto Custodian Hex Trust. While Treasury Holdings put crypto on the balance of public companies, he warns that geared strategies could transform the adoption into a source of instability.
“It’s great for the adoption. It’s great because you basically have indirect Bitcoin access to billions of people investing in local stock exchanges and nasdaq,” Quaglini told Coindesk during a recent interview on the BTC Asia sidelines in Hong Kong.
But he drew a sharp line between healthy diversification and financial technique.
“If this listing company exists with the sole purpose of keeping crypto, yes, then it is a hedge fund that is traded in public. It is an economic technical form of exercise,” he continued.
Quaglini, like many others in the industry, are concerned about large levels of leverage. A recent Galaxy report illustrates the risk and shows loan volume on their highest since 2022 along with a liquidation wave of $ 1 billion, while Korean regulators have already stepped in to freeze new lending products when they become concerned about leverage of load markets.
“If these companies implement leverage and they issue debt to buy Bitcoin with strong triggers, it’s a big problem,” Quaglini said. In public markets, debts are transparent, which means dealers can predict forced sales. “You may be in the situation of the prisoner dilemma … You can have this kind of spiral effect that brings more volatility to the industry.”
Still, Quaglini sees today’s state players as a first step.
“The next step is that you have real companies that have a lot of operational cash flow and they sit on huge amounts of cash, such as Apple, Google, etc.,” he said. If these companies start by assigning reserves to BTC, the shift would be “extremely positive.”
In the end, the real test of DAT’s viability is not whether small companies are transforming into bitcoin proxies, but whether the world’s largest businesses are willing to put their cash piles on the chain.
Market movement
BTC: Bitcoin is in the green changing hands over $ 109k. The world’s largest digital active is stabilized after August became a rare rotation out of the BTC spot -Tfs in ETH funds, which have weighed the relative BTC demand in recent weeks. Wider macro remains supportive but the price action is still consolidated under mid -August heights
ETH: Ether trades for $ 4,298. Market participants are facilitated by making profits after chopping record levels late last month and encountering resistance near the high $ 4,000. August Etf -FlowTrenden favored ETH, but consolidation in the nearest term dominates after the upheaval
Gold: Gold holds near a four -month high on the mounting of bets at a September -fucked rate and a softer US dollar, both of which typically support gold
Nikkei 225: The markets in Asia and the Pacific increased most of the time as investors weigh customs uncertainty and the Summith Summit Shanghai Cooperation Organization, with Japan’s Nikkei 225 up 0.31%after a US court gave up most of Trump’s global tariffs illegal.
Elsewhere in crypto:
- Gavin Newsom wants to launch a meme -coin just to troll Trump (Decrypt)
- South Korea’s FSC chief nominees face setback after calling Crypto Valueless (The Block)
- Trump -family’s share of World Liberty Crypto is growing for $ 6 billion (decryptter)
