Spotlight

The political instrument of tariffs and the associated ‘power’ does not seem to be working and Donald Trump has therefore had to row back on this issue and announce a 90-day break. The pressure on his person was apparently too great after all the negativity. This subsequently led to a strong recovery and relief on the financial markets! This also means that other parameters can now take centre stage again and the focus shifts to Fed decisions regarding possible interest rate cuts or the cyclical weakness of the dollar.

Digital Asset News

Tariff pause for all countries except China: The tariffs introduced by US President Donald Trump appear to be history after just a few days. However, the ‘battle’ between China and the US appears to be escalating and the two sides are outdoing each other with tariffs, which now stand at 145%.

Trading volume at record high: After the easing of the tariff issue became apparent, some ETFs saw record volumes and inflows. This illustrates how great the buying pressure on the financial markets is and that many market participants wanted to trade and take advantage of the cyclical low.

Bitcoin beats US markets: Bitcoin has clearly outperformed the US markets in recent days, underlining its status as ‘digital gold’ and a hedge in uncertain times. Retail investors sold significantly fewer Bitcoin holdings than stocks on average.

Trump continues to be negative: Trump is trying to maintain his political instrument and the narrative of tariffs and has stated that no country will be let off the ‘hook’ and that this is merely a transitional phase. The markets were unimpressed by these statements on Monday.

Digital Asset Market

Market review and outlook

The majority of digital assets experienced volatile, double-digit price rises last week. This was triggered by the 90-day tariff pause that Donald Trump promised for all countries except China. As a result, the global financial markets experienced the most bullish daily movements in decades and generated a new record in trade volumes. This illustrates the pressure on the markets and that the majority of market participants viewed these tariffs as economic chaos. The announced tariff pause has now ensured that this political instrument has lost its ‘horror’ and it can be assumed that they will not be used in the long term. This can therefore be interpreted as the first political defeat of Trump's second term in office, but the global financial markets and digital assets are benefiting greatly from this. The coming week will show whether a further recovery can be driven forward. If the positive sentiment in the market continues, Bitcoin could set its sights on $90,000 again.

Chart technology

From a chart perspective, Bitcoin is now back in the trend channel of ~$80,000 - $90,000 formed weeks ago and showed a V-shaped recovery in the last trading week. This emphasises the cyclical strength and buying power behind this asset class as soon as there are worthwhile entry opportunities. This recovery was mainly driven by retail investors, as institutional investors still have to adjust their risk parameters due to the ‘market shock’ and have not made any investments. If they return to the market in the coming trading days, this could provide further positivity!

The next price targets in the event of a positive development: ~$87,000, ~$90,500 ~$94,000

The next price targets in the event of a negative development: ~$81,000, ~$78,500 ~$76,000

Trading idea

Low-risk entries were offered in almost every digital asset last week. DCA strategies can still be used to force further entries this trading week, but there could be increased volatility, so risk should be adjusted.