Asia Crypto Briefing: Bitcoin Steady as Ethereum Draws Investor Focus for Monthly Upside

Asia Morning Briefing: Bitcoin Consolidates as Ethereum Leads September Rally

Bitcoin (BTC) is holding steady near $112,000, reflecting a period of consolidation as traders differentiate between BTC’s hedge role and ether (ETH)’s potential for upside, according to recent market insights.

QCP Capital cites governance risks and a softer U.S. dollar as supporting hedges like BTC and gold. Elevated term premiums, driven by doubts about Federal Reserve independence, are creating conditions favorable for traditional safe-haven assets.

Meanwhile, Flowdesk and Polymarket traders point to ETH as the market’s primary upside play for September. Flowdesk reports muted BTC implied volatility, suggesting hedged positions rather than speculative bets. BTC put options remain expensive, offering relative value for calls, while ETH risk reversals have rebounded, signaling renewed demand for upside exposure.

Other altcoins are also gaining traction. Solana (SOL) options show increasing activity skewed to the upside, supported by growing confidence in its ecosystem and corporate Digital Asset Treasury (DAT) initiatives. Spot flows have rotated into ETH-linked assets such as AAVE and AERO, as well as SOL-linked tokens like RAY and DRIFT, highlighting broader market participation beyond the majors.

Prediction markets support this rotation theme: traders expect BTC to remain capped near $120,000, while ETH is seen as having strong potential to break $5,000, consistent with its 20% monthly rally and recovering risk reversals.

Market Snapshot

BTC: Consolidating in the $110K–112K range, showing muted short-term volatility as a macro hedge.
ETH: Trading near $4,400, buoyed by institutional ETF inflows and anticipation for the Fusaka network upgrade, strengthening its position in DeFi and smart contracts.
Gold: Near record highs as markets price in a 92% probability of a Fed rate cut, with ETFs and central banks acting as strong buyers.
Nikkei 225: Rose 0.57% Thursday, following Wall Street’s tech rally despite lingering economic concerns.
S&P 500: Advanced Wednesday as Alphabet rallied post-antitrust news, while Fed rate-cut expectations supported investor sentiment despite labor market data.

In summary, BTC remains the preferred hedge against macro and governance risks, ETH is the leading performance play, and SOL is building momentum as institutional and retail flows broaden market participation.