Asia Morning Briefing: ZEC's Rally Outpaces What Transparent Onchain Data Can Explain

Japan has approved a $135 billion stimulus package aimed at bolstering its economy amid ongoing challenges. This significant financial injection is expected to support various sectors and stimulate growth as the nation navigates economic uncertainties. The approval comes at a time when Bitcoin (BTC) is experiencing a dip, reflecting broader market volatility.

Bitcoin's price has fallen toward the mid-$80,000 range as market structure weakens heading into the year-end. The cryptocurrency has struggled to maintain its value, reflecting a broader bearish trend in the market. This decline raises concerns about the potential for further losses as investor sentiment shifts negatively.

Zcash (ZEC) has experienced a significant rebound, recovering from a drop to approximately $548 to gain 12% in the last 24 hours, reaching around $670. This surge follows a remarkable year-to-date increase of over 1,500% and a 175% rise in the past month. Institutional accumulation, particularly by Cypherpunk Technologies, which has acquired $150 million in ZEC, is a key factor driving this rally, prompting traders to speculate on the sustainability of this momentum.

Tether has significantly increased its gold reserves to 116 tons, positioning itself as a major player in the gold market, comparable to small central banks. This development highlights Tether's growing influence in the financial sector, particularly in the context of cryptocurrency.

VanEck reports that the recent downturn in Bitcoin prices is primarily driven by mid-cycle wallets, while long-term holders, known as whales, continue to accumulate. The analysis indicates that the market is experiencing washed-out conditions, with futures data reflecting this trend.

Industry groups have sent a letter to President Donald Trump advocating for new tax policies and agency actions on cryptocurrency initiatives, emphasizing the need for progress amid Congressional uncertainty regarding market structure work.

Kalshi, a CFTC-regulated exchange, has successfully raised $1 billion in funding, achieving a valuation of $11 billion. This positions Kalshi as a strong competitor to crypto-native Polymarket by offering event contracts with fiat access and legal clarity.

AVAX One, backed by Anthony Scaramucci, has approved a $40 million stock buyback as digital asset treasury firms increasingly resort to such measures to counter declining stock prices amid waning investor demand.