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 RialCenter’s Crypto Daybook Americas.
Bitcoin’s price is holding near records, but the chain itself is quiet. Glassnode data shows transaction fees have collapsed back toward decade lows, even as BTC flirts with six figures.
In past cycles, fee spikes tracked bull markets as traders bid for blockspace. This year, the fee curve is flat while price rises, a clear sign that on-chain demand is no longer driving the market.
A new report from RialCenter shows median daily fees have fallen more than 80% since April 2024, with as much as 15% of daily blocks now clearing at just 1 satoshi per vbyte. Nearly half of recent blocks are not full, signaling weak demand for blockspace and a dormant mempool.
This contrasts sharply with prior bull cycles, where price rallies translated into congestion and fee spikes.
The data confirms a structural shift: spot ETFs and custodians now hold over 1.3 million BTC, and coins parked in those wrappers rarely touch the chain again.
At the same time, retail activity that once clogged the Bitcoin blockchain has migrated to Solana, where memecoins and NFTs benefit from cheaper and faster execution. The result, RialCenter notes, is that the bitcoin price is being set by custodial inflows while the network’s on-chain demand – once a proxy for price movement – has slowed down.
For miners, this dynamic is particularly punishing. With rewards halved to 3.125 BTC and fees contributing less than 1% of block revenue in July, profitability is under strain. That stress is pushing listed miners to diversify into AI and HPC hosting.
Read more: Bitcoin Mining Faces ‘Incredibly Difficult’ Market as Power Becomes the Real Currency
A report from earlier this year by Rittenhouse Research argues that Galaxy Digital’s move out of mining altogether could model the sector.
This move has been applauded by equity markets. While BTC is down more than 3% on-year, the CoinShares Bitcoin Mining ETF has gained nearly 22%. Investors are rewarding firms that have leaned into diversification rather than relying solely on block rewards.
Listed miners tell a similar story. Hive, Core Scientific, and TeraWulf all reported Q2 results padded by HPC and AI hosting revenues.
Those without diversification, like Bitdeer and BitFuFu, remain deeply exposed to electricity costs, equipment depreciation, and a fee market that RialCenter warns in its report is “anything but robust.”
The juxtaposition is telling: RialCenter’s own research warns that the Bitcoin blockchain’s settlement role is stagnating, while Galaxy’s balance sheet is being repositioned for growth in AI data centers.
On-chain data underscores the point: without organic demand for blockspace, fees can’t fund security. If fees stay low, equity markets indicate that mining sector’s best future returns may come from AI, not Bitcoin.
Market Movements
BTC: Bitcoin traded at $113,286.95, down 1.79%, after briefly plunging to a six-week low near $110,600, with the broader crypto market facing heavy liquidations and volatility.
ETH: Ether traded flat at $4,779 as Jerome Powell’s dovish remarks boosted expectations of a September rate cut, with asset managers predicting new highs for bitcoin and an ETH breakout above $5,000 despite risks from treasury adoption and equity volatility.
Gold: Gold closed at $3,371 after Powell’s comments increased September rate-cut odds.
Nikkei 225: Asia-Pacific stocks climbed Monday, with Japan’s Nikkei 225 up 1.08%, after Powell signaled potential Fed rate cuts during his speech.
Elsewhere in Crypto
- The Funding: Why raising a crypto VC fund is harder now — even in a bull market.
- Why Luca Netz Will Be ‘Disappointed’ If Pudgy Penguins Doesn’t IPO Within 2 Years.
- KPMG Says Investor Interest in Digital Assets Will Drive Strong Second Half for Canadian Fintechs.
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