Asia Morning Briefing: BTC Tests Its Floor as Legacy Sellers Meet Macro Rotation

💡 DMK Insight

Liquidity shifting back to equities is a big deal for crypto traders right now. Market makers are indicating that as equities attract more capital, crypto is experiencing a digestion phase, especially with long-term holders cashing out. This profit-taking could signal a temporary slowdown in bullish momentum for crypto assets. If liquidity continues to flow into stocks, we might see further pressure on crypto prices, especially if traders start reallocating their portfolios. Keep an eye on how this trend unfolds, as it could impact correlated assets like Bitcoin and Ethereum. If Bitcoin starts to break below key support levels, say around recent lows, it might trigger further sell-offs, creating a cascading effect across the market. On the flip side, if equities start to falter, we could see a rebound in crypto as investors seek alternative assets. Watch for any signs of reversal in equity markets, as that could lead to renewed interest in crypto. The next few weeks will be crucial for gauging sentiment across both sectors.