Bitcoin News Today: Wealthy Asians Pivoting to Crypto as Market Turns Strategic

The surge in cryptocurrency stocks over recent months has begun to cool, with key market indicators pointing to a selective shift in investor focus rather than broad-based enthusiasm. According to recent reports, Bitcoin's price, which had surged to over $124,000 in early August, has since retreated to around $114,610 as demand for the digital asset has softened. The CoinDesk 20 index, which tracks the performance of the largest cryptocurrencies, rose 3.5% on the back of macroeconomic factors and strategic trading patterns, though it failed to regain the momentum it exhibited earlier in the year [1].

Ethereum, on the other hand, has outperformed Bitcoin in recent days, climbing 5.8% to $4,370.73. OKX Singapore CEO Gracie Lin attributes this to a shift in capital toward Ethereum as Bitcoin consolidates. She noted that the rising ETH/BTC ratio indicates a selective reallocation of assets, but emphasized that this is not a full-scale altseason as seen in past cycles [1]. This trend aligns with broader market observations from Enflux, a Singapore-based market maker, which reported a sharp decline in retail enthusiasm for altcoins compared to previous weeks. Institutional investors, however, are maintaining a more focused approach, with strategic bets on assets like BNB and Hyperliquid gaining traction [1].

CryptoQuant’s latest data highlights a significant drop in Bitcoin demand, which has fallen from 174,000 BTC in July to 59,000 BTC as of mid-August. ETF inflows have also slowed to their weakest levels since April, a sign that investors are taking profits rather than chasing further gains. Notably, whale activity has been particularly active, with $2 billion in profits realized on August 16 alone, pushing total realized profits since July to an impressive $74 billion. The firm now classifies the current phase as a “bullish cooldown,” with a key support level identified at $110,000 [1].

Meanwhile, Asian high-net-worth investors are increasingly allocating capital to digital assets, driven by rising mainstream adoption and favorable regulatory developments. Wealth managers in Hong Kong and Singapore reported a surge in demand for crypto funds, with one firm noting that it raised over $100 million in just a few months. Jason Huang of NextGen Digital Venture said that investors, primarily family offices and fintech entrepreneurs, recognize the growing importance of cryptocurrencies in diversified portfolios. UBS also noted that some Chinese family offices are increasing their crypto exposure to around 5% of their total portfolios [2].

The broader market environment has also played a role in shaping investor behavior. With the U.S. inflation data and the upcoming Jackson Hole symposium on the horizon, capital is flowing into assets perceived to be more resilient to macroeconomic shifts. This has led to a more concentrated and selective approach, particularly in institutional investment strategies. Market-neutral strategies such as basis trades and arbitrage are gaining popularity among more sophisticated investors, especially in Singapore, where digital wealth management services are evolving rapidly [2].

The current phase in the crypto market reflects a transition from broad-based speculation to more strategic and measured investing. While Bitcoin remains a key benchmark, Ethereum and other major altcoins are drawing more focused capital. This shift is being driven by a combination of macroeconomic factors, regulatory clarity, and evolving investor sentiment, particularly among Asia’s wealthiest families and institutions [1].

Source:

[1] Asia Morning Briefing: BTC Demand Cools While 'Crypto Capital Is Getting More Selective' (https://www.coindesk.com/markets/2025/08/21/asia-morning-briefing-btc-demand-cools-while-crypto-capital-is-getting-more-selective-okx-s-gracie-lin-warns)

[2] Asia's wealthy investors seek more crypto in portfolios (https://finance.yahoo.com/news/asias-wealthy-investors-seek-more-061515200.html)