Asia Morning Briefing: BTC Pulls Back as Market Isn’t ‘Invincible’, But Google, Meta Lift AI Tokens

Good Morning, Asia. Here’s what’s making news in the markets:

As East Asia begins its business day, bitcoin is down 1.8%, trading above $117,800, as traders take some profit after BTC pushed through multiple all-time highs.

While there’s a belief from some market participants that the rally is just beginning, with calls for BTC to hit 160k, 200k, and further, OKX’s Chief Commercial Officer, Lennex Lai warns that risk is building just as fast as market enthusiasm.

“Across platforms, we’re seeing an increase in aggressive long positions and widening funding rates as ‘Crypto Week’ headlines boost sentiment,” Lai told CoinDesk in an interview via Telegram. “At these levels, risks can build quickly – escalation of trade tensions with the EU, Mexico, and other trading partners could trigger sharp corrections. Another risk is letting euphoria drive decisions.”

Lai points to a slate of coming macro announcements – like the U.K. CPI release, and the U.S Core PPI, retail sales, and consumer sentiment, that could influence global risk sentiment and set the tone for broader markets.

These concerns echo findings from K33 Research’s H1 2025 market report, which highlighted similar risks and volatility triggers earlier this year.

According to K33, geopolitical turmoil and trade policy uncertainty have already driven significant market swings, such as a 30% correction to $75,000 earlier in the year.

The report specifically noted, “Bitcoin struggled in this de-risking period but showed subtle hints of relative strength vs equities by outperforming equities in the aftermath of Liberation Day.”

Additionally, K33 highlighted historically low funding rates amidst rising prices, signaling cautious sentiment among seasoned traders who remain wary of abrupt market reversals.

“Annualized funding rates averaged at 4.51% throughout the half-year, the lowest average half-year funding rate since December 31, 2022,” when the post-FTX crypto winter was at its coldest, the report said.

“In moments like this, smart traders focus on strategy over sentiment, using discipline to manage risk,” Lai continued. “The excitement at the top is real, but those who manage their entries, exits, and funding exposure carefully are best positioned for whatever comes next.”

After all, he concluded, “strong momentum doesn’t mean the market is invincible.”

Maple Finance is Crypto’s Largest On-Chain Asset Manager

Maple Finance is now the largest on-chain asset manager, overtaking BlackRock’s tokenized money market fund BUIDL, according to data from a Dune Analytics dashboard tracking real-time DeFi asset flows. A surge of over $100 million in new deposits this week pushed Maple’s total assets under management (AUM) to $2.9 billion, eclipsing BUIDL’s $2.3 billion.

While BUIDL draws capital with its ultra-conservative exposure to short-term U.S. Treasuries and cash equivalents, Maple appeals to more risk-tolerant institutions by offering yield through undercollateralized loans to vetted trading firms and crypto-native borrowers. That model, which relies on delegated credit underwriting rather than blanket overcollateralization, now appears to be scaling faster.

The milestone suggests a growing appetite for yield-bearing DeFi credit products amid continued macro uncertainty. It also marks a rare instance where a decentralized credit protocol has outpaced a major TradFi incumbent like BlackRock on-chain, at least by raw AUM.

AI Tokens Rally as Big Tech Doubles Down on Infrastructure

AI-focused crypto tokens jumped 5% overnight, pushing the sector’s market cap to $29.6 billion, according to CoinGecko. The move comes amid a surge of AI and data infrastructure announcements from major U.S. tech firms, sparking renewed investor enthusiasm across both equity and token markets.

Google said Tuesday it will invest $25 billion into data centers and AI infrastructure across the PJM electric grid, America’s largest, while also agreeing to buy 3,000 megawatts of hydroelectric power via a $3 billion deal with Brookfield. Meta, meanwhile, is planning “hundreds of billions” in AI data center builds, including a multi-gigawatt facility called Prometheus in Ohio.

The announcements were timed around a Trump administration-led summit at Carnegie Mellon University, where over $90 billion in AI, energy, and data infrastructure pledges were revealed. The bullish tone on AI, from both government and industry, appears to be spilling into token markets, at least for now.

Market Movements:

BTC: Bitcoin is trading at $117,810.33, down 1.69%, and failed breakout attempts gave way to high-volume support, narrowing consolidation, and thinning liquidity, signaling market exhaustion and anticipation ahead of the next macro catalyst, according to CoinDesk’s Research’s technical analysis data.

ETH: Ethereum surged 2.6% to $3,066.57 in a volatile 24-hour session, rebounding from a $2,933.50 low as institutional flows, record staking, and strong volume fueled a breakout past $3,075, signaling renewed bullish momentum.

Gold: Gold fell 0.56% to $3,331.55, even as a new London Bullion Market Association (LBMA) poll showed analysts turning more bullish with upgraded 2025 forecasts averaging $3,324.40—driven by geopolitical tensions, dollar weakness, and fiscal concerns, though opinions remain split on whether prices will climb toward $4,000 or fade into year-end.

Nikkei 225: Asia-Pacific markets are set to open mixed after President Trump announced a preliminary trade deal with Indonesia that includes a 19% U.S. tariff on its exports.

S&P 500: The S&P 500 edged 0.4% lower after touching an intraday record, as rising Treasury yields and a 2.7% June inflation reading raised concerns over tariff-driven price pressures, despite strong bank earnings and Nvidia-led tech gains.

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