Asia Colour
TradFi markets continue to chop as participants digest developments from the U.S. and anticipate the next move in this high-stakes tariff war.
U.S. equity markets have lost momentum, with the SP500 struggling to stay above the key 6,000 level. The volatility of the past week triggered a flush in the crypto space with BTC briefly touching $92k and ETH collapsing to $2,100.
The delay in tariffs against Mexico and Canada has provided some relief to crypto markets. However, the U.S.-China tariff war remains front and center. There is a glimmer of hope that an amicable resolution may emerge from the upcoming call between Trump and Xi Jinping.
Meanwhile, yesterday’s conference by Crypto Czar David Sacks disappointed the broader market. A task force has been set up to draft clearer regulations, starting with stablecoin legislation. Additionally, a working group has been formed to evaluate the feasibility of a Strategic Bitcoin Reserve (SBR). While this initiative may take time, we view it as a long-term positive for crypto.
BTC’s resilience above $90k is impressive, but we remain cautious about negative geopolitical shocks from U.S.-China tensions, particularly amid global market uncertainty. Furthermore, the lack of near-term crypto-specific catalysts leaves the market vulnerable to negative price shocks. In this environment, a defensive approach and risk management are key, especially given the large liquidations observed on Monday.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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