Thought of the week

Trump's statements that there will be a digital asset reserve are just a renewal of his campaign statements. This time, however, he has put it in concrete terms and named a number of assets that are to be held in this reserve. In addition to Bitcoin and Ethereum, these include Ripple, Cardano and Solana. The door was left open for further ‘good American projects’, which gave the market a noticeable boost.

Digital Asset News

Bitcoin has overcome its price weakness again - thanks to an announcement by Donald Trump. The cryptocurrency traded a fifth higher in Asia this Monday than at the end of last week. Several other cryptocurrencies also rose sharply.

On Sunday, the US president announced the names of cryptocurrencies to be included in a new US strategic reserve for the first time. Trump wrote on social media that currencies such as Bitcoin and Ether should be ‘the centrepiece of the reserve’. He also mentioned XRP (Ripple), SOL (Solana) and ADA (Cardano). Their prices also rose as a result. ‘I will make sure that the USA is the crypto capital of the world,’ Trump wrote. As a result, the price of Bitcoin rose by more than 20 per cent from USD 78,273 on Friday to USD 94,154. Ether also rose by a fifth over the weekend and was last quoted at USD 2,482. XRP rose by 38 per cent, Solana by 20 per cent and Cardano by 78 per cent.

The posting about the inclusion of tokens in the reserve was ‘clearly a positive shock to the crypto scene and a shot in the arm for a market that desperately needs a catalyst to change the bear trend to the downside,’ said Chris Weston, head of research at Australian online broker Pepperstone. It is possible that the rally will continue until the first crypto summit at the White House next Friday, he added.
Brian Moynihan, the CEO of Bank of America, recently told an audience at the Economic Club of Washington DC that the commercial bank will likely launch a stablecoin if comprehensive legislation is passed in the United States. According to Fortune, the CEO told an audience at the Economic Club of Washington DC, ‘If they legalise it, we will get into that business.’
Moynihan added that the bank could offer dollar-backed tokens pegged to customer deposit accounts, but did not elaborate on potential products.

Stablecoins are expected to flourish under President Donald Trump's administration as sweeping regulations on dollar-pegged tokens are introduced to expand the US dollar's dominance in international trade and land stablecoin companies.
Several stablecoin bills have recently been introduced by US parliamentarians, including the Lummis-Gillibrand Payment Stablecoin Act, the Clarity for Payment Stablecoins Act of 2024 and the GENIUS Stablecoin Bill. The congresswoman also said that the bill drafted by former House Financial Services Committee Chairman Patrick McHenry in 2024 to regulate stablecoins was preferable to other legislation.
The US Securities and Exchange Commission dropped its lawsuit against crypto exchange Coinbase on 27 February, according to recent court filings.

The SEC has agreed to voluntarily dismiss with prejudice all litigation related to Coinbase and Coinbase Global, which includes the withdrawal of its original June 2023 complaint and its motion for a preliminary injunction in the US Court of Appeals, according to a court filing on 27 February.
The two parties had previously announced an agreement to end the litigation on 21 February.
The SEC commented that ‘the withdrawal will facilitate the Commission's ongoing efforts to reform and renew its regulatory approach to the crypto industry.’

Under the previous leadership of Gary Gensler, the SEC took a strict approach to regulating cryptocurrencies, which resulted in Coinbase and other major players in the industry being hit with unexpected lawsuits. ‘It's time for the Commission to correct its approach and develop a more transparent crypto policy,’ emphasised the new chairman of the SEC, Mark Uyeda.

Digital Asset Market

Market review and outlook

The majority of digital assets initially experienced major setbacks last week, making a possible temporary ‘end’ to the bull market likely. Some digital assets have already lost more than 50% from their highs, establishing a negative trend. Bitcoin also lost important price support and at times traded below the $80,000 mark. Reasons for this included the cyclical low ETF volumes and a lack of price catalysts in the altcoins. However, market sentiment changed with the establishment of a support zone above half of $80,000 and a general calming of the market, which ultimately led to a pronounced price rally as a result of Trump's statements on Sunday. The market for digital assets thus experienced very strong volatility in both directions within a very short space of time. The coming week will therefore be an exciting one: If institutional investors are not influenced by such politics and inflows continue at low levels, a healthy correction could follow, but if this catalyst is also a market driver for institutional investors, further positivity could follow.

Chart technology

From a technical chart perspective, Bitcoin is now above the $90,000 support zone and was easily able to reach this price level again thanks to Trump's statements. This shows that high buying volumes have the potential to drive the markets at any time. Increased resistance should be expected in the price regions of $95,000 and above, so that only a high volume in the medium term will drive the markets. Should Bitcoin consolidate, a healthy support could be formed in the $88,000 - $85,000 region.

The next upside price targets: ~$95,000, ~$98,000 ~$100,000

The next price targets in case of negative development: ~$93,000, ~$90,000 ~$87,000

Trading idea

Swing trades after ‘strong’ movements could be a valid tool in the coming days.