Hello, Asia. Here is what is news on the markets:
Welcome to the morning briefing in Asia, a daily summary of the best stories during the hours and an overview of market movements and analyzes. For a detailed overview of the American markets, see the Americas of the Coindesk Crypto Daybook.
The Bitcoin price is near the recordings, but the chain itself is silent. Glassnode data show that transaction costs collapsed to low decades, even if the BTC flirts with six digits.
In the previous cycles, the costs of costs followed the bull markets while traders tenders for blockspace. This year, the cost curve is stable while prices are increasing, a clear sign that onchain’s demand no longer stimulates the market.
A new Galaxy Research report shows that daily median costs have dropped by more than 80% since April 2024, with up to 15% of the daily blocks which are now clearing at only 1 Satoshi per Vbyte. Almost half of the recent blocks are not full, signaling a low demand for block space and a dormant mempool.
This contrasts strongly with the previous bull cycles, where prices rallies have resulted in peaks in congestion and costs.
The data confirm a structural change: the ETF spacts and the guards now hold more than 1.3 million BTC, and the parts parked in these packaging rarely affect the chain again.
At the same time, the retail activity which once obstructed the Bitcoin blockchain migrated to Solana, where the same and nfts benefit from a cheaper and faster execution. The result, notes Galaxy, is that the price of Bitcoin is fixed by childcare entries while the onchain demand for the network – once a proxy for price movement – has slowed down.
For minors, this dynamic is particularly punishing. The awards reduced by half by 3.125 BTC and the costs contributing less than 1% of block income in July, profitability is under tension. This stress pushes minors listed to diversify in IA and HPC accommodation.
Read more: Bitcoin Mining faces an “incredibly difficult” market as power becomes real currency
A report of earlier this year by Rittenhouse Research maintains that the moving of Galaxy Digital from mining could be the model of the sector.
This decision was applauded by the stock markets. While BTC is down more than 3% in the year, the FNB Coinshares Bitcoin Mining gained almost 22%. Investors reward companies that have relied on diversification rather than counting on the only block rewards.
The minors listed tell a similar story. Hive, Core Scientific and Terawulf all reported the results of the Q2 padded by HPC and IA hosting income.
Those who have no diversification, such as Bitdeer and Bitfufu, remain deeply exposed to electricity costs, the damping of equipment and a market of the costs that Galaxy warns in his report is “anything but robust”.
The juxtaposition is revealing: Galaxy’s own research warns that the Bitcoin blockchain regulation role stagnates, while Galaxy’s assessment is repositioned for growth in AI data centers.
Onchain’s data is taking stock: without organic blocking space request, the costs cannot finance security. And if the costs remain low, the stock markets paint a clear image that the best future feedback from the mining sector can come from AI, not bitcoin.
Market movements
BTC: Bitcoin exchanged $ 113,286.95, down 1.79%, after briefly plunged to a six -week low almost $ 110,600, with the wider cryptography market confronted with heavy liquidations and volatility.
Ethn: Ether exchanged flat at $ 4,779 while Jackson Hole’s remarks by Jerome Powell increased the expectations of a drop in September, asset managers predicting new peaks for Bitcoin and an evasion of ETH greater than $ 5,000 despite the risks of the adoption of the treasury and the volatility of the shares.
Gold: Gold has closed $ 3,371 after the Powell Jackson hole remarks increased the September rate ratings.
Nikkei 225: Actions in Asia-Pacific climbed on Monday, with Nikkei 225 of Japan up 1.08%, after Powell reported potential Fed declines in September during his speech by Jackson Hole.
Elsewhere in crypto
- Funding: why the collection of a Crypto VC fund is more difficult now – even on a bull market (the block)
- Why Luca Netz will be `disappointed ” If the grouped penguins are not listed on the stock market within 2 years (decrypt)
- KPMG claims that the interest of investors for digital assets will lead a solid second half for Canadian Fintech (Coindesk)
