Asian traders are placing increased focus on positioning data and funding rates, alongside Bitcoin’s headline price, as market conditions remain fluid. One key development came from the US spot Bitcoin exchange-traded funds (ETFs), which saw over $223M in net inflows on Thursday, marking the strongest reading in the past 20 days.
However, analysts caution that these flows may be reflective of short-term positioning rather than long-term institutional demand. If equity markets experience further volatility, these flows could reverse quickly.
Bitfinex analysts pointed out that Bitcoin’s next movements will largely depend on Federal Reserve signals, reactions from Treasury markets, ETF inflows, and the behavior of Ethereum (ETH) relative to Bitcoin (BTC). They highlighted the steady rise in the ETH/BTC ratio, even with low network fees, suggesting that capital is rotating back into Ethereum’s longer-term narrative. This pairing has become an important gauge of risk appetite in the crypto market.
Global Markets Hit New Highs as Traders Position for More Dovish Fed Stance
Global markets have adjusted following the Federal Reserve’s third consecutive interest rate cut this week. The central bank’s less hawkish tone helped lift the MSCI All Country World Index to a new closing high and pushed the dollar index to a two-month low of 98.30, as traders started anticipating a gradual shift towards more accommodative policies.
Japan Outperforms, SoftBank Rises on Potential Acquisition
In Asia, Japan’s Nikkei 225 saw a strong performance in morning trade, rising around 1%. SoftBank Group shares surged approximately 6% after a Bloomberg News report revealed that the conglomerate is considering acquiring US data center company Switch Inc., an acquisition that investors believe would capitalize on the growing demand for AI infrastructure.
Wall Street Futures Turn Cautious Amid Mixed Tech Sentiment
In contrast, US market futures pointed to a more cautious start. S&P 500 e-mini contracts were flat during Asian hours, while Nasdaq futures slipped by about 0.2% after Oracle shares plunged 13% following the company’s weak forecasts and heavy spending plans. Oracle’s struggles raised concerns over how quickly AI investments will yield profits, prompting another round of selling in tech stocks.
Within the AI sector, sentiment was mixed. Broadcom reported stronger-than-expected first-quarter revenue projections, offering some reassurance to investors. However, shares dropped about 5% in late trading after the company warned that its margins would likely narrow due to an increased share of sales from AI, signaling potential headwinds ahead for the sector.
