đWhat's going on with the market?
weekly valuable insights
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GM friends.
Hereâs what Iâll cover today:
đWhatâs going on with the market?
đ Crypto chart of the week
đď¸ The latest DeFi news
đWhatâs going on with the market?
Looks like trade war season is back.
While gold has been surging, altcoins are performing as if WW3 just happened.
The primary reason for the latest dip is the new trade war between Europe and the US, which apparently ended in less than a week.
Trump wanted to purchase Greenland, but as Denmark refused to sell it and its European allies supported its decision to keep it, Trump threatened to impose a new 10% tariff on several major EU countries, which threatened to retaliate.
And obviously, this entire shitshow created a lot of panic in all financial markets.
The good news is that yesterday, Trump announced that after talking with NATO Secretary General Mark Rutte, he decided to no longer impose the tariffs for now.
The question now is, whatâs next for markets?
Iâll share a few thoughts on this below.
First of all, I think the current terrible price action is mostly due to the macro and geopolitical situation, and it doesnât necessarily have anything to do with âcrypto fundamentalsâ.
Even if you might find analyzing macro boring, I think itâs crucial to keep an eye on the major macro events if you're trading crypto, as the reality is that BTC and altcoin prices are directly impacted by them.
That being said, besides Trumpâs trade war with Europe, that now seems to be behind us (which is a great sign), there is unfortunately also another market headwind:
The US Supreme Courtâs decision on Trumpâs tariffs
Thereâs only a 32% chance that the U.S. Supreme Court will say that Trumpâs tariffs are legal, according to Polymarket.
If Polymarket is right and the tariffs are canceled by the Supreme Court, I think thereâs a relatively high chance this will trigger massive liquidations and a major dip in the short-term, as it would create a lot of panic in the markets.
So far, the US collected over $100 billion in tariffs.
Assuming the Supreme Court also orders Trump to pay back all this money after canceling the tariffs (which is unlikely but not impossible), it would cause a total mess and have a massive negative impact on all financial markets.
The only good news is that this would probably also mark a local bottom.
But as we donât know when the decision on Trumpâs tariffs will be announced (most likely in February, but not confirmed), thereâs a lot of market uncertainty, and a lot of whales are hesitant to deploy money into crypto because of this.
Is it now a good time to buy altcoins?
Personally, for now, I prefer to stick to accumulating only Bitcoin.
While I think we could see an altcoin rally in the short-term now that the tariff war between the US and Europe seems to be over, I unfortunately believe that other asset classes like stocks and maybe also metals will keep outperforming altcoins for the foreseeable future.
There is still a lot of market uncertainty about the Greenland situation and what Trump will do next to get what he wants, even though tensions are starting to de-escalate there.
This unpredictability is terrible for risk-on assets like crypto.
And as I said above, thereâs also a high chance the Supreme Court will soon rule that Trumpâs tariffs are illegal, which could cause a lot of panic and affect all markets.
For now, my main goal is to survive, accumulate BTC, and earn from other crypto activities, such as airdrop farming, prediction market trading, and shorting high FDV token launches, rather than buying altcoins.
Itâs a challenging period for everyone in crypto, but better times will come.
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Chart of the week
Crypto cards are surging in popularity
Crypto meme of the weekđ
The latest developments in DeFi
Pendle introduced sPENDLE - a liquid staking token with a revenue-sharing mechanism
Hyperliquidâs HIP-3 daily trading volume surpassed $1 billion for the first time ever
Ondo launched hundreds of tokenized stocks and ETFs on Solana
INFINIT, the AI layer for DeFi execution, announced the listing of its token IN on Kraken
Chainlink launched 24/5 U.S. Equities Data Streams, enabling stocks and ETFs to be traded on-chain beyond traditional trading hours
NYSE announced theyâre building a blockchain-based platform to support 24/7 trading for U.S. equities and ETFs
GMX announced its expansion to MegaETH
HyENA, the USDe-margined perps DEX built on Hyperliquid, opened access to public. Traders can get a 12% boosted collateral APR when using it
RAAC partnered with Curve to deploy 100M+ pmUSD liquidity into Curve ecosystem
Cap, a popular stablecoin protocol, announced plans to conduct the first airdrop in the form of stablecoins instead of tokens
Optimismâs proposal to use 50% of its sequencer revenue for token buybacks is live
Metamask added support for Tron L1
Noble announced plans to migrate from a Cosmos appchain to an EVM-based L1
Loris Tools announced Trade - a perps DEX aggregator built to make perps DEX farming and funding rate arbitrage easier
Paradex announced a rollback after an issue triggered mass liquidations
HyperLend introduced its token called HPL
Privacy Cash launched Private Swaps on Solana
Thatâs all for this week!
Until next time,
The DeFi Investor
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