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Welcome to Asia Morning Briefing, a daily summary of top stories during U.S. hours and an overview of market moves and analysis. For a detailed overview of U.S. markets, see CoinDesk's Crypto Daybook Americas.
The market has been asking whether bitcoin is losing to gold. Darius Sit, co-founder and Managing Partner at QCP Capital, says the debate is often framed around price when liquidity realities matter more.

Singapore-based QCP is one of Asia's largest trading desks, with over $60 billion in annual volume.

“If you’re comparing Bitcoin to gold, it’s not a like-for-like comparison… you’re talking about almost like a mouse versus an elephant kind of comparison,” Sit told CoinDesk. “You have two different sets of idiosyncratic market forces affecting market price in the short term, but on the longer-term narrative, I think, [they] remain quite similar.”

Gold’s dominance reflects sovereign demand, entrenched market structure, and sheer scale. Bitcoin’s lag owes more to position unwinds than thesis collapse. Gold’s market cap is so large that its daily swings can exceed bitcoin’s entire valuation, turning short-term divergence into a physics problem rather than a narrative verdict.

However, “in the longer term, narrative looks the same,” Sit said.

A bigger inflection point, in his view, isn’t bullion’s rally but crypto’s Oct. 10 (now called 10/10) deleveraging event. That episode drew a hard line between bitcoin and the rest of the digital asset complex, exposing how liquidity and credit mitigation diverge once leverage snaps.

“October 10 revealed that … there is a very clear line in terms of the liquidity between crypto, altcoins and bitcoin,” Sit said. The takeaway isn’t that crypto lost its appeal, but that much of the market discovered its true depth only after forced unwinds cleared the book. What remained was a thinner landscape where price moves sharply in either direction.

One of the most important lessons of "10/10" was how crypto venues handle credit when things break.

Sit drew a stark contrast with traditional markets, where layered broker and clearinghouse structures absorb shocks before losses reach end users.

Native crypto exchanges, by comparison, often operate as single points of failure, relying on shareholder equity, insurance funds, and, in extreme cases, socialized loss.

“The moment you trigger socialized loss, your platform will lose trust,” Sit said, describing what he views as the industry’s real institutional ceiling. Volatility isn’t the deterrent. The problem emerges when traders cannot predict how liquidations and counterparty risk will be managed in a stress event.

Socialized loss occurs when an exchange's insurance fund cannot cover bankrupt positions, forcing the platform to close out profitable traders' positions to cover the shortfall, effectively making winners pay for others' losses. This happened on many major exchanges during the Oct. 10 market crash.

He added that participants perceived the rules as inconsistent, with some products or counterparties appearing insulated while others absorbed the hit.

That perception lingers longer than the price drawdown itself. Markets can rebuild leverage and volume, but trust in liquidation governance is slower to return.

The result is a divided landscape where bitcoin retains credibility due to deeper liquidity and clearer use as collateral, while the broader altcoin complex trades with a structural discount tied less to macro direction than to venue design and counterparty confidence.

In Sit’s view, bitcoin still behaves like a long-horizon inflation hedge and an increasingly legible form of collateral, whereas the broader altcoin universe is more directly subject to venue governance and order-book depth than to macro narratives alone.

“When something has poor liquidity, it can go down a lot. It can go up a lot,” Sit said.

Market Movement

BTC: Bitcoin swung violently but edged up about 5% in the last hour as extreme volatility followed a liquidation-driven plunge toward $60,000, with the RSI near 17 signaling historically oversold conditions that often precede sharp relief bounces even as price hovers near the $58,000 to $60,000 support zone.

ETH: Ether traded around $1,895, rebounding about 7% in the past hour after a liquidation-driven selloff, with volatility surging as deeply oversold momentum conditions triggered a short-term relief bounce despite double-digit losses over the past 24 hours.

Gold: Gold slipped about 3.7% to roughly $4,740 per ounce in a broad risk-asset pullback and profit-taking wave, but analysts argue the longer-term uptrend remains supported by persistent central-bank buying, debt and currency-confidence concerns, and forecasts that still see potential for prices to push toward $7,000 later in 2026 despite short-term volatility.

Nikkei 225: The Nikkei 225 slipped about 1% to extend a three-day losing streak as a Wall Street tech rout spilled into Asia, dragging South Korea’s Kospi down as much as 5%, pressuring Hong Kong and Australian equities, and reinforcing a broader risk-off tone that also weighed on silver and other volatile assets.

Elsewhere in Crypto

• U.S. Treasury's Bessent calls out crypto 'nihilists' resisting market structure bill (CoinDesk)
• Tom Lee's Bitmine now $8 billion underwater as ether tumbles below $2,000 (CoinDesk)