Spotlight

Altcoins are showing cyclical strength and have now been able to follow the brilliant rise in Bitcoin and even “outperform” in some cases. In particular, heavily oversold altcoins such as Ethereum recorded weekly gains of over 30%. Most altcoins are up between 10-20% on a weekly basis, creating strong and positive momentum in the digital asset market.

Digital Asset News

Tariff dispute: The US and China have reached an agreement in the "trade war" and are planning a major rollback. This political instrument now appears to have been finally shelved by Trump. As a result, the global markets were very positive in pre-market trading.

Strategy ensures deflation: If Michael Saylor and Strategy continue to buy Bitcoin in these quantities, Bitcoin would represent a deflationary asset. This strong fundamental support provides positivity, but also leads to strong centrality, which is seen as negative by some market participants.

Solana vs Ethereum: The crypto bank Sygnum criticizes in an analysis that Solana's business model still lacks the reliability and sustainability to overtake market leader Ethereum. Solana has not yet shown convincing signs that it could replace Ethereum as the preferred blockchain for institutions, as the blockchain network's revenue, which relies heavily on memecoins, is considered unreliable, according to crypto bank Sygnum. However, according to Sygnum, “medium-term developments will be primarily shaped by the decisions of traditional financial institutions rather than sentiment”.

US regulation for digital assets: Major asset manager BlackRock talks to the SEC's crypto task force about important topics such as staking and tokenization. Influential asset manager BlackRock has met with the SUS Securities and Exchange Commission's (SEC) crypto task force to discuss staking in crypto exchange-traded products (ETPs) and the tokenization of securities. The talks could also have an impact on institutional interest in the crypto industry. According to a memo released by the taskforce on May 9, BlackRock wanted to “discuss perspectives on the treatment of staking, including considerations for facilitating ETPs with staking capabilities.”

Digital Asset Market

Market review and outlook

The majority of digital assets experienced strong and volatile upswings last week. Bitcoin easily overcame the $100,000 mark, which is psychologically very important, and is now only a few percentage points below its all-time high. If further positivity flows into the markets, Bitcoin could reach new highs in the course of the week! This rally was triggered on the one hand by positive sentiment on the global financial markets and on the other hand by the brilliant and hopeful geopolitical news. After years of diplomatic stalemate, there now appear to be serious developments towards "peace/talks" in Russia's invasion war against Ukraine and the USA and China also appear to want to end their "trade war". Corresponding statements by Donald Trump provided relief and paved the way for a positive start to the week!
In addition, altcoins are showing rare strength and outperforming Bitcoin for the first time in many months. The coming week will show whether the high expectations can be met. If so, further positivity is likely to dominate the markets.

Chart technology

From a chart technical perspective, Bitcoin is now close to its all-time high (~$110,000) at ~$105,000. Bitcoin has not been able to establish any support zones around this level to date, making a test of the all-time high likely if momentum is maintained. It remains to be seen whether the general market sentiment and institutional interest will continue to boost the market or whether renewed resistance will form and initial selling will take place. If Bitcoin cannot establish a new all-time high, $100,000 should hold as "support" to sustain the trend. If this level fails to hold, a short-term consolidation at ~$95,000 could follow. Currently, the signs are good and positive for the coming trading week.

The next price targets in the event of a positive trend: ~$110,000, ~$113,500 ~$117,000

The next price targets in the event of a negative trend: ~$100,000, ~$95,000 ~$92,500

Trading idea

The market currently appears to be showing slight tendencies towards "overheating". New long positions should wait for a strong support formation / consolidation. Existing positions should be managed with a slightly wider stop loss.