Asia Morning Briefing: Bitcoin Eyes $130K as Euphoria Builds, But ETH and SOL Steal the Show

Good Morning, Asia. Here's what's making news in the markets:

Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas.

Bitcoin is holding above $118,800 as the market digests its push rally to $122, which broke previous all-time highs.

While on-chain data indicates that the first wave of heavy profit-taking has begun, especially among short-term holders holding oversized unrealized gains, analysts in a recent Glassnode report write that history may still suggest room for a push higher but warn overheating signals are beginning to flash, urging caution in the near term.

“Short-term holders are now sitting on significant unrealized profits,” the report states, pushing indicators “towards overheated territory.”

The Short-Term Holder Relative Unrealized Profit metric hit 15.4%, breaching the +1 standard deviation threshold, before cooling slightly. Historically, this level “often marks the beginning of top formation.”

Glassnode also highlights the Realized Profit to Loss Ratio, which spiked to 39.8, “well above the +2 standard deviation threshold,” signaling intense profit-taking. Though it has since declined to 7.3, the elevated reading remains consistent with late-stage bull market behavior.

“So far, both the Percent of Spent Volume in Profit and the Realized Profit to Loss Ratio have signaled the first wave of excessive profit-taking,” the report concludes. While this doesn’t mark a definitive top, “such top formations tend to unfold across multiple waves,” with the next resistance projected around $130K.

Meanwhile, traders are rotating into altcoins. ETH surged 7.5% in the past 24 hours, with analysts pointing to the GENIUS Act advancing as a reason, outpacing BTC and breaking out of a recent consolidation.

SOL is up 5%, buoyed by fresh on-chain data showing Galaxy Digital accumulated $55 million in SOL within a two-hour window, withdrawing the tokens from multiple centralized exchanges.

The rotation into ETH and SOL comes as BTC’s near-term upside appears increasingly constrained by profit-taking pressure, even as the broader structure remains intact.

Coinbase Wallet Becomes 'The Base App'

Coinbase has officially rebranded its Wallet product as the “Base App,” confirming speculation that’s been swirling since the company scrubbed its X profile earlier this week. The move positions the app as a central gateway into the Base ecosystem, now pitched as a full-stack, onchain platform made for the mainstream.

The rebrand was announced during Coinbase’s “A New Day One” event, which unveiled a broader vision for Base built around three pillars: the existing Layer-2 network Base Chain, a developer toolkit suite dubbed Base Build, and the newly launched Base App.

Unlike its predecessor, the Base App isn’t just for storing crypto—it integrates chat, payments, trading, and a mini-app marketplace that supports social and financial experiences.

This isn’t Coinbase’s first wallet makeover (OGs will remember “Toshi”), but it’s arguably the most ambitious. With Base increasingly distancing itself from the Coinbase brand, the new app appears designed to emphasize Base’s identity as a more decentralized, open ecosystem, anchored in the values of crypto, but packaged for the everyday user.

Market Movements

BTC: Bitcoin hovered near $118,000 in Asia as traders priced in a potential September Fed rate cut following soft U.S. CPI data, while K33 Research suggested the asset’s traditional four-year cycle may be breaking down as it matures.

ETH: Ethereum is trading above $3,400 after rising over 7% on strong spot ETF inflows and steady demand from crypto treasury firms, pushing it into the green for 2025 and marking its highest level since January.

Gold: Gold rebounded to trade above $3,350 as weaker-than-expected U.S. producer inflation data and renewed speculation over Fed Chair Powell’s removal weighed on the dollar and revived hopes for a more dovish monetary policy stance.

Nikkei 225: Japan’s Nikkei 225 fell 0.6% after Trump reiterated plans for a 25% tariff on Japanese imports and cast doubt on a broader trade deal.

S&P 500: U.S. stocks rebounded Wednesday, with the S&P 500 up 0.3%, after President Trump said he’s “not planning” to fire Fed Chair Jerome Powell, easing market jitters from earlier reports suggesting otherwise.

Elsewhere in Crypto:

• US Marshals Service holds just 28,988 BTC, far less than expected, FOIA request reveals (The Block)
• Hack ‘Victims’ Say Tornado Cash Offered No Help in the Wake of Exploits: Day 2 of Roman Storm Trial (CoinDesk)
• California Forms Tech Task Force With Ripple, Coinbase Participation (Decrypt)