Asia Morning Briefing: Weak Sentiment Weighs on Crypto Markets in the Red

A $54 billion wipeout in 30 minutes might look like a crash, but analysts warn it’s only the beginning. This kind of move happens when liquidity thins and leverage peaks at the top of a cycle — the real pain comes later, when forced sellers, dry funding, and vanishing bids hit the market. Bitcoin hasn’t reached its first major support yet, and Ethereum still sits above its 200-week MA at $2.5K. Altcoins remain overpriced — this, experts say, is just the warning shot.

France has approved a new tax amendment targeting “unproductive wealth,” including crypto holdings over €2 million ($2.3 million). The law imposes a 1% annual tax on such assets, aiming to push investors toward “productive” investments. Critics argue the move is less about reform and more about government control, as it penalizes individuals for holding digital assets outside the traditional financial system. Many see it as an attempt to limit financial freedom and discourage crypto wealth accumulation.

In early November 2024, Bitcoin crashed from $71K to $66K, sparking panic across the market — only to surge 60% to $108K within 45 days. During that same period, Ethereum jumped 75%, and altcoins exploded, with total market cap rising 138% and many tokens gaining 5x–10x in under two months. Now, a year later, the setup looks eerily similar. Despite the recent dip, macroeconomic data remains bullish — the Fed is expected to cut rates in December, quantitative tightening ends Dec 1, and QE is already underway as the Fed buys Treasury bills. Meanwhile, U.S. stocks hit new highs, gold peaked, and a U.S.-China trade deal was signed.With liquidity flooding back into markets, many believe crypto prices are being deliberately suppressed. But long-term holders aren’t budging.

Bitmine’s $1.3 billion loss on Ethereum has shaken market confidence, as the network’s most aggressive buyer appears to be out of ammunition. According to 10x Research’s October 31 report, “Shorting Ethereum May Be the Smart Move,” the warning about a breakdown in key technical levels has proven accurate. Since then, ETH has slipped through multiple support zones, ETF inflows have dried up, and retail interest has faded. With Bitmine now fully deployed and unable to average down, the market is questioning — if Bitmine can’t buy the dip, who will? Analysts suggest that on-chain trends and options positioning point to more downside ahead. If the next critical support gives way, the focus may shift from “buying dips” to managing exits.

Ethereum (ETH) is showing signs of strength as it continues to form higher lows since early October, despite recent consolidation around key levels from July and August. Analysts are maintaining upside targets at $4,500, $4,955, and $5,766, with the latter aligning with the 50% ETH/BTC retracement level. Should ETH see a short-term dip, the VWAP support near $3,300 is expected to hold — though many believe the price is unlikely to fall that far. The current structure suggests bullish momentum remains intact as ETH gears up for its next potential leg higher.

Ripple has announced the acquisition of Palisade, a digital wallet and custody firm, as part of its strategy to expand institutional services. The move enhances Ripple’s custody infrastructure, enabling it to directly serve fintechs, corporates, and crypto-native firms seeking secure digital asset storage and transaction solutions. This acquisition marks another step in Ripple’s push to build a stronger foothold in the institutional crypto custody and enterprise blockchain space.

Solana (SOL) has seen a sharp correction after its strong rally this year, dropping 11% on the day to trade near $165. Analysts are eyeing the $150–$156 range as a key support zone, aligning with the 0.618–0.65 Fibonacci retracement levels. If bulls can defend this region, the next upside target lies around $197, near Solana’s November monthly pivot. With the launch of the Solana ETF in the U.S., market watchers are now focused on whether institutional demand can help stabilize the token’s price heading into the year’s close.

The crypto market is facing renewed pressure as institutional demand for Bitcoin drops below the rate of new coin issuance for the first time in seven months, signaling that large buyers may be stepping back. Investor sentiment remains cautious, with many waiting for confirmation of a market bottom before re-entering. Meanwhile, long-term holders appear to be taking profits, as previously inactive wallets show renewed activity. Adding to the weakness, an index tracking the bottom 50 of the top 100 altcoins has plunged 8.8% recently and is now down 60% for the year, underscoring broad market fragility.

According to CryptoQuant CEO Ki Young Ju, South Korea’s KOSPI index has surged to an all-time high, even as crypto trading volumes on local exchanges have fallen to record lows. Ju agreed with an analyst’s view that the South Korean president may be deliberately supporting the stock market to divert speculative activity away from the real estate sector. The move could also be aimed at improving public approval, as the president continues to face multiple legal challenges.

With ISO 20022 implementation set for November 22, the XRP community is buzzing with wild predictions — some claiming XRP could soar to $10,000, while others expect it to hit three figures by year-end. While optimism is high, such targets seem unrealistic in the short term. Despite progress on ETF approvals and the Clarity Act, major price moves take time as the network and tokenization ecosystem evolve. The lawsuit may be behind XRP, but regulatory clarity and institutional adoption are still unfolding — making patience more valuable than hype.

According to a new analysis, Bitcoin’s next major pivot could form around $99,000, aligning with the 55-week EMA. The analyst notes that for this move to occur, BTC would first need to lose the 1.272 Fibonacci support, which has so far held strong. As long as that level remains intact, the recent bottom may already be in. However, if Bitcoin does break below it, the $99K–$102K zone is expected to become a key buy area where strong buyer demand could return.

StreamDeFi has temporarily suspended all withdrawals and deposits after an external fund manager overseeing its assets reported a loss of approximately $93 million in Stream Fund holdings. The project confirmed the disclosure in an official update, saying it is assessing the situation and working to recover the funds. Following the announcement, $XUSD — StreamDeFi’s stable asset — plunged over 28%, raising major concerns across the DeFi community about transparency and fund security.

Cardano’s (ADA) price struggled to rally over the weekend, holding around $0.57. While long-term believers expect ADA to eventually surpass $9, short-term market signals suggest a possible deeper pullback. Traders warn that prices could still drop to $0.40, $0.30, or even $0.20 before rebounding. Whether this is a buying opportunity or a trap depends on your risk appetite and confidence in ADA’s long-term potential.

Rumors are spreading that Wintermute, one of crypto’s biggest market makers, may sue Binance over massive losses during the October 10 market crash, when over $19 billion in positions were liquidated—the largest in crypto history. The crash followed Trump’s tariff announcement on Chinese imports, which caused Binance’s systems to overload and trigger unfair ADL liquidations. Wintermute’s CEO, Evgeny Gaevoy, said they are considering legal action, though no lawsuit has been filed yet. Binance admitted system issues but denied wrongdoing. After the chaos, many traders say their trust in centralized exchanges has been shaken.