Asia Morning Briefing: Asia Wakes Up to an AI BTC-Nvidia Tailwind That’s Already Starting to Sputter

Group 1: Market Sentiment and Trends - The optimism in the markets was driven by Amazon's $50 billion commitment to U.S. AI and supercomputing infrastructure, but this optimism is facing resistance [1] - In 2025, cryptocurrencies have shown high volatility and are behaving more like AI proxies rather than inflation hedges, with Amazon's pledge providing a significant sentiment boost for miners transitioning to AI infrastructure [2] - The performance of Nvidia is critical; its recent 6% decline has raised concerns about the stability of the AI sector, which could impact the correlation between crypto and AI investments [2][4] Group 2: Cryptocurrency Performance - Bitcoin (BTC) is currently trading in the high-$87,000 range but has not gained significant momentum or attracted safety bids despite a broader risk-off environment [5] - Ether (ETH) is experiencing a slight increase, holding above the mid-$2,900s, as traders are favoring assets with clearer catalysts while Bitcoin stalls [5] - BTC dominance is not increasing as expected during fear cycles, indicating a shift in liquidity towards assets like Solana and ETH [3][4] Group 3: Market Reactions and Future Outlook - The future of crypto markets is contingent on the stabilization of AI stocks; if Nvidia stabilizes, the growth correlation may be reestablished, otherwise, crypto may need to rely on its own fundamentals [4] - Market positioning is shifting, with flows moving towards narratives with clearer catalysts such as Solana, ETH, DePIN, GPU compute, and tokenization [3]