Morning Report Asia: Bitcoin Stalls Around $105K as Analyst Calls Market ‘Overheated’

Bitcoin Holds Steady Above $105K as CryptoQuant Warns of Market Overheating

Bitcoin (BTC) is trading just above $105,000 as Asia’s markets open, maintaining relative calm after a quiet weekend with only a 0.4% price shift and subdued trading volume.

While the overall outlook remains bullish, a recent CryptoQuant report signals potential signs of overheating in Bitcoin’s market. Demand for BTC over the last 30 days has surged to 229,000 coins, closing in on the December 2024 peak of 279,000. Meanwhile, whale holdings have increased by 2.8%, a pattern that often precedes slower accumulation phases.

This data suggests the recent rally, which propelled Bitcoin close to $112,000, could be approaching a short-term resistance point.

The report points to $120,000 as a significant hurdle — the upper band of the Traders’ On-chain Realized Price where unrealized profits hit around 40%, a level historically linked to local market peaks.

Despite these warnings, CryptoQuant’s Bull Score Index holds strong at 80, reflecting sustained positive momentum. Yet, rising profit-taking and slower growth in demand hint at a potential consolidation period before Bitcoin resumes its climb.

Additional Headlines:

James Wynn’s $17M Liquidation Didn’t Stop Him: ‘I’ll Run It Back’

Trader James Wynn, known for his aggressive bets on Bitcoin and altcoins, suffered a full liquidation resulting in losses exceeding $17 million. After a massive $1.25 billion long position in BTC collapsed amid geopolitical unrest, Wynn’s account was left with just $23.

Undeterred, Wynn posted on X: “I’ll run it back, I always do. And I’ll enjoy doing it. I like playing the game.”

Brazil’s Méliuz Plans $78 Million Stock Raise to Buy More Bitcoin

Brazilian fintech Méliuz intends to raise up to $78 million through an equity offering aimed at expanding its Bitcoin treasury. Following the announcement, Méliuz shares dropped 8%, as the market digested the news.

The offering includes 17 million shares, potentially rising to 51 million, along with subscription warrants for future stock purchases. Méliuz currently holds 320.2 BTC and had earlier allocated 10% of its cash reserves to Bitcoin.

NYC Comptroller Calls Mayor Adams’ Bitcoin Bond Plan ‘Fiscally Irresponsible’

New York City Comptroller Brad Lander criticized Mayor Eric Adams’ proposal for bitcoin-backed municipal bonds, calling it “legally dubious” and warning that it could jeopardize the city’s credit rating.

Lander noted that crypto volatility and regulatory complexities make digital assets unsuitable for funding vital city projects. Despite Adams’ push for crypto initiatives, the comptroller emphasized risks to investor confidence and fiscal stability.

Market Snapshot:

Bitcoin (BTC): Recovered from $103,800 lows to trade above $105,300 amid rising volume.
Ethereum (ETH): Climbed from support near $2,473 to $2,527 with strong buying pressure.
Gold: Increased 0.6% to $3,311, buoyed by geopolitical uncertainty.
Nikkei 225: Declined 0.89%, reflecting mixed reactions to new trade tariffs.
S&P 500 Futures: Slipped Sunday following a strong May rally amid tariff-related uncertainty.