Asia Morning Briefing: Nvidia’s Rally to $4 Trillion Might Have Helped BTC, But Correlation Is Waning
Nvidia’s record-breaking $4 trillion market cap propelled Bitcoin (BTC) to near all-time highs, briefly exceeding $111,000, potentially breaking its prolonged trading range. This surge, however, might be short-lived, as the correlation between Nvidia and BTC is weakening, dipping to 0.36 from a peak above 0.80 earlier this year. While Glassnode analysts view recent Bitcoin market inactivity as a sign of maturity, dominated by large institutional transactions and long-term holders, the Nvidia correlation’s decline suggests BTC’s price resilience may be independent of Nvidia’s future performance.
Australia’s central bank digital currency (CBDC) project, Project Acacia, is entering a real-world testing phase with 24 industry participants trialling digital money applications in various asset markets. This initiative, a collaboration between the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre, will explore settlement across bonds, carbon credits, and other asset classes. ASIC’s regulatory relief allows for testing with real assets, fostering responsible innovation. Conversely, the Bank of Canada has abandoned its retail CBDC development due to concerns about potential government surveillance.
Market movements show Bitcoin hovering near $109,000, demonstrating resilience despite regulatory uncertainty and dormant wallet activity. Ethereum (ETH) closed up 2.8 percent, with strong institutional volume supporting a bullish outlook. Gold prices extended losses, pressured by reduced Fed rate cut bets and a strong dollar. Asia-Pacific markets opened mixed, influenced by the Bank of Korea’s rate hold and US trade tariffs on Brazil. US stock futures were mostly flat following a tariff-driven decline earlier in the week.
Crypto news includes discussions on US digital asset tax policy, Pump.fun’s planned revenue sharing with token holders, and the potential dismissal of Logan Paul’s ex-assistant from the CryptoZoo lawsuit. Despite the recent Bitcoin price surge, macroeconomic factors, such as rising US debt and concerns about the housing market, suggest a potential correction towards $95,000 remains a possibility.
