Ethereum (ETH) Surges Past $2,500, Breaking Above Resistance Level

Ethereum surged past $2,00 in early Asia hours, up 3.7%, breaking decisively above its previous resistance level of around $2500

Good Morning, Asia. Here’s what’s making news in the markets:

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To coin a phrase, Bitcoin and luxury watches were both ‘hot' during the pandemic, as government stimulus and low interest rates created a perfect storm for speculative assets. Prices for both also moved closely in tandem, at least until mid-2023. However, over the past year, the two have taken distinctly different paths, with BTC surging 56.9% and luxury watches falling by 4%, according to Bitcoin price today and WatchCharts.com.

As recently as May 2023, the two assets were still closely correlated, with a correlation coefficient of 0.68, indicating a moderate positive correlation. However, by the start of 2024, the correlation had weakened significantly to 0.21, and by mid-January, it fell further to 0.08, signaling minimal correlation.

OKX Global Chief Commercial Officer Lennix Lai attributes Bitcoin’s sustained upward trajectory to increased institutional adoption and maturation as a credible asset.

“We've seen a shift in thinking, especially within institutions, recognizing Bitcoin as a valuable addition to their investment portfolios, leading to substantial increases in institutional capital flows into Bitcoin over the past year,” Lai noted.

In contrast, the secondary market for luxury watches has cooled considerably from its pandemic peak.

“The real collectors stayed in watches while speculators moved on, and bitcoin has matured to take its place in many investors’ portfolios,” Lai said. “Watches make great heirlooms, but I'll take Bitcoin any day as a generational asset. You can't lose it, scratch it during a move, or have it stolen, as long as you keep your seed phrase secure.”

Yet, in recent months, the luxury watch market has shown early signs of a modest recovery, posting a 0.3% gain over the last three months.

Jake Plonskier, founder of Watches.io, attributes this rebound to external economic pressures rather than renewed crypto-driven speculation. He notes rising tariffs and surging gold prices as key catalysts.

“Gold and silver are decent proxies for the watch market,” Plonskier explained, highlighting Rolex’s January decision to raise MSRP by 14% for its gold models.

He added that crypto's lasting impact on luxury watches is primarily demographic: "Crypto wealth introduced a whole new market that can afford watches. Now men under 30 can afford Pateks and APs, which traditionally never would have been purchased by this type of clientele.”

Circle Prepares for IPO Filing

Circle Internet Group, the issuer of stablecoin USDC, has filed for an initial public offering (IPO) on the New York Stock Exchange under the ticker "CRCL," aiming to sell 24 million class A shares priced between $24 and $26 each, according to a previous report by .

The company itself will offer 9.6 million shares, potentially raising nearly $250 million, while selling stakeholders are providing an additional 14.4 million shares, possibly earning close to $375 million.

Cathie Wood’s ARK Investment has indicated interest in purchasing $150 million worth of shares during the IPO, which is being managed by joint lead active bookrunners J.P. Morgan, Citigroup, and Goldman Sachs.

The IPO filing follows previous unsuccessful attempts, including a failed SPAC deal in 2021 and brief consideration of a $5 billion sale to firms such as Coinbase or Ripple.

Marathon Digital CEO Says U.S. Government Should Mine BTC

Marathon Digital CEO Fred Thiel has urged the U.S. government to start actively mining bitcoin to fulfill President Trump's directive for a strategic bitcoin reserve, suggesting excess hydroelectricity could support domestic mining operations, as reported by .

Speaking at Bitcoin 2025, Thiel emphasized the necessity of tangible steps beyond the current plan of using approximately 200,000 seized bitcoins from government forfeitures. Senator Cynthia Lummis supports this broader vision through her proposed BITCOIN Act, advocating for converting underperforming government gold certificates into bitcoin to expand the reserve substantially.

However, Lummis acknowledges significant legislative hurdles remain, citing a general lack of congressional understanding about bitcoin and competing priorities such as stablecoin and market structure regulations.

Market Movements:

Elsewhere in Crypto...

output: Ethereum rose 3.7% in the early hours of Thursday, breaking decisively above its previous resistance level of around $2,500 following a prolonged period of consolidation, according to CoinDesk Research's AI-assisted technical analysis model. The rally is being supported by strong trading volume and signals significant institutional confidence, with $248 million in net inflows reported last week for spot Ethereum ETFs, notably led by BlackRock's iShares Ethereum Trust.

DeFi activity is