Japan Considers Allowing Banks to Offer Digital Asset Trading Services

Week of October 21 - 27, 2025

Japan’s Financial Services Agency (FSA) is preparing regulations that would allow banks to hold and invest in digital assets. The FSA is also considering permitting banks to directly register as digital asset exchange service providers, signaling a major shift in how traditional financial institutions participate in the crypto ecosystem.

In China, the People’s Bank of China (PBoC) and the Cyberspace Administration of China (CAC) have expressed concerns over private firms in Hong Kong planning to issue stablecoins. This follows Hong Kong’s introduction of a stablecoin licensing regime in August. Major firms like Ant Group and JD.com have reportedly paused their stablecoin plans in response to regulatory pressure.

Paul Atkins, Chairman of the U.S. SEC, openly stated that the United States is more than 10 years behind in crypto innovation. He emphasized that the SEC must establish clear, innovation-friendly regulations to bring developers and companies back to U.S. soil and restore the country’s status as a global tech hub.

A JPMorgan report revealed that more than $20 billion in recent market liquidations likely came from early adopters and long-term crypto holders, rather than institutional investors or ETF-related capital. This conclusion is based on CME futures data, which shows little sign of institutional selling activity.

U.S. Congressman Troy Downing has proposed a bill to the House Financial Services Committee that would make the Executive Order allowing 401(k) retirement plans to invest in digital assets a permanent law.

Separately, JPMorgan is developing infrastructure to allow its clients to trade digital assets, although it has not yet enabled direct custody of cryptocurrencies. Analysts view this as a significant step toward broader institutional integration.

Bitwise Invest reported that publicly listed companies accumulated 95% of all Ethereum (ETH) acquired in Q3 2025, bringing total holdings to 4.63 million ETH (≈ USD 19 billion), around 4% of the total ETH supply. This trend marks what analysts describe as the beginning of an “Ethereum supercycle.”

Technical Analysis

Bitcoin (BTC)

Bitcoin (BTC) has continued to move upward, and the momentum has a chance to carry on as the price starts to form higher lows. Look for buying opportunities at support levels not lower than 102,800 USD. The target is at the resistance level of 117,000 USD. If this level is broken, there is potential for a retest of the previous all-time high.

Support: 3,480,000 THB / 102,800 USD
Resistance: 3,840,000 THB / 117,000 USD

Ethereum (ETH)

Ethereum (ETH) has the potential to enter a recovery phase, with a target resistance level at 4,250 USD. If it breaks through this level, the trend may move toward retesting the previous all-time high. However, there is a risk that the price could drop to retest the previous low at 3,650 USD, which could also serve as a potential buying opportunity.

Support: 120,000 THB / 3,650 USD
Resistance: 140,000 THB / 4,250 USD

Ethena (ENA)

Ethena (ENA) delivered a 15.67% return over the past week after the price tested its recent low and successfully rebounded. The initial resistance target is at 0.5320 USD. If this level is broken, there is potential for further upside. A stop-loss should be placed if the price falls below 0.3460 USD, as the trend would then turn bearish.

Support: 12 THB / 0.3460 USD
Resistance: 18 THB / 0.5320 USD

Bittensor (TAO)

Bittensor (TAO) posted a 9.27% return over the past week, with the price rebounding quickly. Look for buying opportunities during price pullbacks. The key support level is at 370 USD, while the short-term resistance for taking profit is at 478 USD.

Support: 1,200 THB / 370 USD
Resistance: 1,600 THB / 478 USD

Investment Trends

The cryptocurrency market rebounded early this week following Donald Trump’s announcement that he will meet with Chinese President Xi Jinping at the APEC summit on October 29, 2025. This raised market hopes for a positive outcome in trade negotiations between the U.S. and China.

At the same time, the Federal Reserve Chair commented on potentially ending the current quantitative tightening (QT) policy and hinted at the possibility of two interest rate cuts later this year. These developments could support Bitcoin prices if U.S.-China tensions ease.

This week, all eyes are on Friday, October 24, when the Consumer Price Index (CPI) figures are expected to be released. The market anticipates a reading of 3.1%, up from 2.9% last month. However, if the U.S. government shutdown continues, the data release may be delayed.

Selling pressure on Bitcoin is expected to ease after a major sell-off on October 10. Meanwhile, altcoins are gaining attention amid optimism about potential ETF approvals. If the U.S. ends the shutdown, this period may present a good opportunity to accumulate Bitcoin, Ethereum, and select altcoins likely to benefit from ETF approvals. However, if Bitcoin drops below the 100,000 USD level, it is advisable to pause investments as the upward momentum would be weakened.

References

Topics: Educational Featured Trading

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