Bitcoin hovers close to $90,000 as investors turn to altcoins: Asia Morning Update

Asia Morning Market Highlights

Start your day with the Asia Morning Briefing—a concise roundup of the most important overnight developments in U.S. markets, along with a snapshot of current market trends and expert analysis.

This week, the cryptocurrency market continues its familiar pattern: bitcoin remains steady near the $90,000 mark, ether is trading above $3,000, and the most notable price swings are happening among select altcoins rather than the leading cryptocurrencies.

Rather than signaling renewed bullish momentum, this trend suggests the market is stabilizing after a period of reduced leverage and lower liquidity.

According to market maker Enflux, a significant token unlock for SUI has caused imbalances in altcoin trading pairs. This has led automated market makers to rebalance through arbitrage on centralized exchanges, which in turn has thinned bitcoin’s liquidity and kept its price within a narrow range, while individual altcoins experience sharp moves.

For instance, Story’s token has surged 20% in a single day and 40% over the week, despite on-chain data showing minimal fundamental drivers—such as only $4.75 million in DeFi total value locked, $27 in daily fees, and about $220,000 in DEX trading volume, with no token incentives. This supports the idea that recent price action is driven more by traders shifting positions than by genuine growth in usage.

At the same time, underlying demand for bitcoin appears to be cooling.

With most leverage cleared out and funding rates stable, bitcoin faces little downward pressure, as noted in Glassnode’s weekly analysis. However, weak spot demand and negative ETF flows are also capping any significant upward movement. As a result, capital is circulating within the market rather than expanding, keeping bitcoin’s price range-bound as traders look for opportunities in altcoins with less supply or stronger narratives—even when fundamentals don’t support the moves.

Currently, bitcoin is acting more as a stabilizing force than a market leader. Prediction markets suggest a high probability that BTC will remain close to $90,000 through mid-January, with limited chances of a breakout above the mid-$90,000s or a drop below the high $80,000s.

With spot demand subdued and no major institutional catalysts in sight, price discovery is shifting to the edges of the market—altcoins—where lower liquidity and speculative narratives can drive prices, even as the main index remains stuck in a range.

Market Update

• Bitcoin (BTC): Bitcoin continues to trade sideways around $90,000 during Asian trading hours, with little movement in either direction as leverage stays low and spot demand remains weak.
• Ether (ETH): Ether is maintaining levels above $3,000, buoyed by selective rotations into altcoins, though analysts note it lacks the momentum for a decisive breakout.
• Gold: Gold is holding steady near $4,588 per ounce after a 2% rally to new highs. Silver has eased by 1.2% following a 6% jump, supported by a softer U.S. dollar and concerns about Federal Reserve independence amid a Justice Department investigation into Chair Jerome Powell.
• Nikkei 225: Japan’s Nikkei 225 surged approximately 3.4% on Tuesday, leading gains across Asia-Pacific markets after reopening from a holiday. Investors shrugged off geopolitical tensions and the U.S. probe into the Fed chair, with additional advances seen in Hong Kong and Australia, despite rising Japanese bond yields and a weaker yen.

Other Crypto Developments

• Lawmakers are considering standalone legislation to provide legal protections for developers, as the Senate prepares to unveil new market-structure proposals.
• The CEO of Polygon Foundation highlights the advantages of holding POL tokens, even as the number of active addresses declines.