Asia Update: For Bitcoin Traders, Coinbase Premium May Matter More Than Bank of Japan Policy

Asia Morning Brief: Bitcoin Holds Near $110K as Coinbase Premium Gains Spotlight Over BoJ Rate Cuts

Bitcoin (BTC) began Wednesday’s Asian session trading near $109,700, showing little movement in early hours but maintaining a 4% gain for the week, according to CoinDesk market data.

The much-anticipated Bank of Japan (BoJ) interest rate cut has so far failed to significantly impact crypto markets, despite the usual positive effect of low rates on risk assets like bitcoin.

Instead, attention is turning toward the “Coinbase Premium”, a key indicator tracked by CryptoQuant that measures the price difference between BTC on Coinbase Pro (USD) and Binance (USDT). This premium signals strong dollar-driven demand for bitcoin, particularly from U.S.-based investors.

“The Coinbase Premium is steadily climbing, reflecting growing buying pressure from U.S. investors,” noted CryptoQuant analysts. “Whale activity is also increasing incrementally.”

This trend aligns with recent Bitcoin ETF inflows, which have topped $386 million so far this week, data from SoSoValue shows.

However, some analysts warn that the potential approval of a staking-focused Ether ETF could dampen institutional interest in Bitcoin ETFs. Youwei Yang, chief economist at BIT Mining, explained that ETH staking ETFs offer yield opportunities that BTC ETFs cannot provide, which may attract some capital away from Bitcoin.

“Bitcoin’s rally has been largely fueled by ETF enthusiasm,” Yang said. “With Ether’s established presence in U.S. spot ETFs and unique yield features, it could become the preferred choice for institutions watching from the sidelines.”

Meanwhile, market participants remain cautiously poised for the BoJ’s official announcement. Prominent crypto voices like Arthur Hayes continue to expect a major Bitcoin surge triggered by the central bank’s easing policies.

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DEX Trading Volume Nearly Doubles in Past Year

Decentralized exchanges (DEXs) have gained significant traction over the past year, doubling their share of overall crypto trading volume.

Messari reports that DEX volumes rose from about 6% of total market volume last year to 12% today, with May’s figure approaching 25%, partly thanks to platforms like Hyperliquid gaining popularity among active traders.

OKX President Hong Fang emphasized that DEXs and centralized exchanges (CEXs) serve complementary roles. “CEXs provide reliability; DEXs drive innovation,” she said. “This dynamic supports broader adoption and regulatory progress.”

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News Highlights

• Brian Quintenz, Trump’s CFTC Nominee, Calls for Congressional Leadership on Crypto Regulation
  At his Senate confirmation hearing, Quintenz stressed the importance of clear legislative guidance from Congress to foster innovation and protect consumers in the crypto space. He also supported a technology-first approach to improve regulatory efficiency and defended prediction markets as valid hedging tools.
• Aave Expands to Sony’s Soneium Layer-2 Blockchain
  Aave has launched on Soneium, a Layer-2 Ethereum blockchain supported by Sony, aiming to leverage Aave’s decentralized stablecoin GHO across payments and commerce. Partnerships with local blockchain players like Astar aim to boost DeFi adoption within Japan’s Web3 ecosystem.

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Market Snapshot

• Bitcoin (BTC): Steady near $110K as exchange reserves fall and short liquidations increase, indicating strong accumulation.
• Ethereum (ETH): Up 6.9% to $2,803, driven by ETF inflows and notable institutional purchases by BlackRock.
• Gold: Near $3,350 as optimism around U.S.-China trade talks offsets dollar strength.
• Nikkei 225: Gains 0.69% on positive trade talk momentum.
• S&P 500: Advances 0.6%, closing in on record highs, supported by optimism on trade negotiations and Tesla news.

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