Asia Morning Note: Altcoin Momentum Builds Amid Bitcoin Cooling

Asia Crypto Briefing: Altcoin Rotation Accelerates as BTC Cools; 2025 Becomes Worst Year for Crypto Theft

Altcoins Gain Momentum Amid Bitcoin Consolidation

As Asian markets open, Bitcoin (BTC) is trading above $120,500, posting a 1.7% gain in the past 24 hours, while Ethereum (ETH) continues its upward trend, rising 3% to approach $3,500.

Market maker Enflux sees signs of profit-taking in BTC and a developing rotation into higher-beta altcoins. “Bitcoin funding and positioning are starting to look extended,” the firm said in a note to CoinDesk. “This creates room for traders to pivot toward altcoins, particularly ETH and speculative tokens like meme coins and CeFi assets.”

Tokens such as Caldera surged 90% in daily trading, while volumes climbed for Curve and FLOKI, signaling renewed appetite for risk. XRP has led the breakout, surpassing its 2018 high of $3.50.

Enflux added that strong ETH inflows and increased bid-side resilience across altcoins may foreshadow a broader rotation in the coming sessions.

Institutional Demand Builds Around Ethereum

Coinbase and Glassnode’s Charting Crypto report reinforces the bullish altcoin narrative. Ethereum ETFs saw over $1.7 billion in inflows during Q2, reversing earlier outflows.

Coinbase data also shows that Ethereum’s Net Unrealized Profit/Loss (NUPL) flipped into the “optimism” range, with 90% of ETH’s supply now in profit, up from under 40% at the start of the year.

Layer-2 (L2) network usage is also expanding, with transactions up 7% and average fees falling by 39%, suggesting improving network efficiency and user activity.

Still, Coinbase noted that altcoin performance will likely depend on project-specific catalysts. “Only select assets may outperform,” the report said.

---

Crypto Crime Hits Record $2.17B in 2025, Led by North Korea-Linked Mega Hack

Crypto-related crime has reached a new peak in 2025, with $2.17 billion stolen year-to-date, according to Chainalysis. The majority of this loss—roughly $1.5 billion—came from a single exploit targeting crypto exchange ByBit, which investigators attribute to North Korean state-sponsored hackers.

This breach alone accounts for nearly 70% of service-level losses in 2025, and marks a new phase in crypto-related cybercrime.

Chainalysis noted the pace of theft is also accelerating: it took just 142 days to surpass the $2 billion mark this year, far faster than the 214 days it took in 2022, the previous record year.

While exchanges remain top targets, attackers are increasingly targeting individuals. More than 23% of stolen assets in 2025 came from personal wallets, as attackers pivot to AI-assisted phishing and social engineering tactics.

Chainalysis also flagged a disturbing rise in “wrench attacks”—physical assaults designed to extract access to crypto wallets. These incidents tend to spike alongside BTC price rallies, suggesting opportunistic targeting during bull markets.

With over $8.5 billion in stolen assets still held on-chain, the firm warns the second half of the year could see more sophisticated—and violent—tactics unless robust security measures are adopted.

---

Market Overview

• Bitcoin (BTC): Up 1.7% to $120,500+ following reports President Trump may approve an executive order allowing 401(k) plans to include crypto and other alternative assets.
• Ethereum (ETH): Up 3.12% to $3,477.70, driven by ETF inflows and optimism around the GENIUS Act.
• XRP: Breaks through $3.50, reaching new all-time highs as altcoins gain strength.
• Gold: Down nearly 1% to ~$3,315 as strong U.S. economic data supports the dollar and weighs on precious metals.
• Nikkei 225: Edged up 0.075% to close at 39,931.16 Thursday; rose 0.3% Friday morning to cross 40,000.
• S&P 500: Closed at a new record, alongside the Nasdaq, as strong corporate earnings and macro data lifted investor sentiment.

About The Author