Good Morning, Asia! Here’s what’s buzzing in the markets today:

As East Asia kicks off its trading day, Bitcoin (BTC) is priced at $116,263, reflecting a slight decline of 1.1% today and 2% over the week. Meanwhile, Ethereum (ETH) is trading at $4,322, down 3.8% in the past 24 hours but showing a weekly gain of 2.6%.

According to the CoinDesk 20 index, which tracks major cryptocurrencies, there’s a notable 2.4% dip in the market.

Traders are bracing for potential weakness as the end of August approaches. Polymarket odds reveal a 34% chance that BTC will close below $111,000, while ETH might hover around $4,800 with a 43% probability.

Market Conditions and Institutional Sentiment

Singapore-based market maker Enflux notes a key tension in the market: strong institutional confidence versus lackluster retail activity. They point to Strategy Inc.’s recent acquisition of an additional 430 BTC as a clear indicator of institutional buying power.

Despite retail-friendly tokens like XRP and DOGE struggling due to SEC delays on ETF approvals, institutions are optimistic. VanEck has reiterated its impressive $180,000 year-end Bitcoin target.

Interestingly, Solana is bucking the trend, demonstrating 'quiet strength' particularly through its dominance in USDC transfers.

Caution in Derivatives

Recent updates from QCP highlight a cautious market stance, with perpetual funding rates turning negative and options skewing towards puts. This suggests a structurally supportive market at the top, but tactical defensiveness ahead of the Jackson Hole symposium.

Fed Chair Jerome Powell is expected to tackle policy in light of soaring inflation, amid pressure from a White House eager to impact the Fed’s decisions.

Search Interest and Legislative Developments

On a positive note, interest in crypto is at a four-year high, with the GENIUS Act progressing through Washington. However, while anticipation builds for a broader rally, current prediction markets and price actions indicate that confidence remains concentrated in higher tiers as flows remain selective.

Market Movements

Bitcoin has fluctuated between $114,993 and $117,620 as of August 18, with volumes rising amid news of Treasury Secretary Scott Bessent's clarifications regarding strategic reserves.

Ethereum experienced a 3% drop to $4,330.61, faced with volatility and continual resistance near historical highs, despite U.S. spot ETFs attracting $3.71 billion, contrasting with ongoing retail sell-offs.

In commodities, gold hovered around $3,333–$3,394 an ounce, as traders positioned themselves ahead of the Fed’s Jackson Hole symposium, potentially signaling upcoming rate cuts.

In equities, the Nikkei 225 in Japan edged up 0.1%, even as most Asia-Pacific stocks dipped amidst looming discussions between global leaders.

Meanwhile, U.S. stocks remained relatively unchanged on Monday as the summer rally showed signs of losing momentum ahead of important economic updates.