Spotlight

The US stock markets have fallen by almost 15% over the past three trading days. This illustrates the uncertainty that the tariffs have triggered. The coming days will show whether this ‘radical’ policy will be abandoned or whether it will be continued with determination. A certain ‘abandonment’ of the plan would be necessary to calm the market in the short term.
In these phases, the most sensible approach is capital preservation, ‘sidelining’ - this means not having made any investments and having increased cash holdings.

Digital Asset News

US tariffs and counter-tariffs influence global markets: The high tariffs introduced by US President Donald Trump have led to tensions in international trade. China responded with counter-tariffs on US goods, which weighed on the financial markets and had a major impact on digital assets.

Trading volume on the market collapses: For the first time since 2020, the markets recorded a drastic drop in trading volume of 50 per cent in a single day. This indicates increased uncertainty and caution among investors. This could build up buying pressure if the markets stabilise again after a period of consolidation.

Strength despite market uncertainties: While many projects around the world struggled with low investor interest, one project in the Solana ecosystem was able to raise almost USD 30 million in the presale. This underlines investors' confidence in the long-term positive development of digital assets and the industry.

Experts warn of further market uncertainties: Analysts such as Arthur Hayes are forecasting a difficult month for Bitcoin and other digital assets as well as the global financial markets due to the current geopolitical tensions and economic uncertainties.

Digital Asset Market

Market review and outlook

The majority of digital assets experienced major setbacks last week. Due to the tariffs announced by the US government, which are significantly tougher than many market participants had analysed, share prices have fallen sharply since then. In the past three trading days alone, the most important indices (Nasdaq, Dow Jones, SP500) have lost less than 15% of their value. Bitcoin and the digital assets were initially able to show relative strength and ‘decouple’ themselves from the correlation and initially did not lose any significant value. A weekend with low trading volumes and a very negative US futures start to the new trading week increased the selling pressure on digital assets, with the result that Bitcoin was unable to hold the $80,000 support line and now has to establish new support levels. Market sentiment has fallen dramatically in recent days, meaning that risk-on assets are currently less in demand. Nevertheless, Bitcoin has outperformed a large part of the global financial markets in the negative days. This underlines the fact that the current market structure is very unstable and the further effects of the current situation are difficult to assess. A rapid market recovery is not to be expected, but would be of immense importance in order to prevent the markets from entering a final and prolonged correction mode.

Chart technology

From a technical chart perspective, Bitcoin is now below the formed trend channel with the lower end at ~$80,000 and must defend the strong support zone up to ~$76,000. If this is not successful, further cyclical sell-offs to ~$72,000 cannot be ruled out. Black Monday’ on the stock markets could reinforce this direction, although a consolidation or slight positivity on the stock markets towards the middle of the week could favour a V-shaped recovery, although this would require significant “progress” on the customs issue. Otherwise, the current market situation should be treated with the utmost caution.

The next price targets in the event of a positive development: ~$80,000, ~$83,500 ~$87,000

The next price targets in the event of a negative development: ~$75,000, ~$72,500 ~$66,000

Trading idea

Sidelining and thus a wait-and-see attitude is the route for the current situation. Should a positive trend establish itself, strongly sold-off altcoins in particular offer good buying opportunities for long-term entries.