Asia Morning Briefing: Forget BOJ Rates — Coinbase Premium Could Be Bitcoin’s True Signal

Asia Morning Update: Bitcoin Nears $110K as Coinbase Premium Gains Attention Over BOJ Rate Cuts

Bitcoin (BTC) was trading around $109,700 early Wednesday in Asia, according to CoinDesk data. While the world’s largest cryptocurrency has remained largely flat in early trading, it is up 4% on the week.

The market reaction to the anticipated Bank of Japan (BoJ) interest rate cut has been muted. Typically, lower rates spark risk-on sentiment that benefits BTC, but traders appear focused elsewhere.

One metric gaining traction is the “Coinbase Premium” — the price gap between Bitcoin on Coinbase Pro (USD) versus Binance (USDT) — tracked by CryptoQuant. This premium signals strong dollar demand for bitcoin from U.S. investors, as opposed to crypto-native buying.

“Coinbase Premium is gradually rising, indicating steady buying pressure from U.S. investors,” CryptoQuant analysts said. “We’re also seeing increasing whale accumulation.”

Supporting this trend are fresh inflows into Bitcoin ETFs, with $386.27 million added so far this week, per SoSoValue data.

However, some market watchers worry that a staking-focused Ether ETF, potentially nearing approval, could divert institutional interest away from BTC ETFs. Youwei Yang, chief economist at BIT Mining, noted that Ether staking ETFs offer yield opportunities that Bitcoin ETFs lack, which may impact BTC’s momentum.

“Much of Bitcoin’s recent rally was fueled by ETF hype,” Yang said. “Ether remains the only other crypto with real U.S. spot ETF presence, making it attractive for institutions waiting to enter the market.”

For now, many remain cautious, waiting for the BoJ’s official move. Crypto commentators like Arthur Hayes still expect Bitcoin to surge dramatically following any easing.

DEX Volume Nearly Doubles in One Year

Since the rise of Automated Market Makers (AMMs) in 2018, Decentralized Exchanges (DEXs) have steadily grown. The trend has accelerated recently, with DEX trading volume doubling its market share.

Data from Messari shows DEX volume jumped from 6% of total crypto volume last year to 12% today, reaching nearly 25% in May — helped by platforms like Hyperliquid attracting aggressive traders.

Are DEXs a threat to centralized exchanges (CEXs)? Not according to OKX President Hong Fang, who told CoinDesk that the two coexist and complement each other.

“The crypto-native audience values CEXs for reliability and DEXs for innovation,” Fang said. “This balance supports both adoption and regulatory maturation.”

News Roundup

Trump’s CFTC Nominee Brian Quintenz Calls on Congress to Lead Crypto Regulation
At his Senate confirmation hearing, Brian Quintenz emphasized that clear legislation from Congress is essential to foster innovation and protect consumers in crypto markets. Quintenz, former CFTC commissioner and a16z policy head, also highlighted the importance of a tech-forward approach and defended prediction markets as useful financial tools.
Aave Launches on Sony’s Soneium Layer-2 Blockchain
Aave is now live on Soneium, an Ethereum Layer-2 blockchain backed by Sony. This integration includes deploying Aave’s decentralized stablecoin GHO and liquidity incentives with blockchain firm Astar, aiming to expand DeFi usage across payments and digital commerce in Japan’s growing Web3 ecosystem.

Market Movements

Bitcoin (BTC): Trading just below $110K as exchange reserves decline sharply, signaling strong accumulation and short liquidations.
Ethereum (ETH): Surges 6.9% to $2,803 on triple-average volume, boosted by ETF inflows and BlackRock’s large ETH purchases.
Gold: Spot gold nears $3,350 amid cautious optimism around U.S.-China trade talks despite a stronger dollar.
Nikkei 225: Japan’s market opens up 0.69%, buoyed by positive U.S.-China trade discussions.
S&P 500: Gains 0.6%, nearing record highs over 6,000, fueled by optimism on trade talks and Tesla’s robotaxi plans.