MARKET COMPASS
Respite Phase
- After the trade tensions eased with the tentative agreement with China, the US inflation data for April released yesterday came in below expectations, signaling that there is no unexpected problem in the world’s largest economy.
- While new developments are expected in global markets after the gains brought by the US-China reconciliation, we seem to be experiencing a respite phase. It seems that investors need to find more courage for new rises to come. Wall Street futures and digital assets are flat after the rally.
- As President Trump’s visit to the Middle East is dominated by chip deals, markets are wondering whether the interim deal with China will eventually be finalized. However, there is also hope that relations with Iran may soften. On the other hand, there is skepticism that the upcoming Ukraine talks in Turkey will be able to remove one item from the list of geopolitical risks.
- Inflation did not surprise badly in April, but the effects of trade tensions could be felt in May and this could have an impact on asset prices as expectations about the US Federal Reserve’s (FED) rate cut path are priced in.
- Statements from FED officials will be under the spotlight in the rest of the day.
- In the medium to long term, we remain bullish on major crypto assets as digital assets start to be adopted by traditional investors. In addition, for the short term, we think that the upside potential has been somewhat limited compared to previous days, but remains one of the key opportunities on the table. It would be useful for investors to be prepared for intermediate corrections and respites.
Digital Compass
In the US, the locomotive of the world economy, we consider the strategic crypto reserve, which started with Trump’s nomination process, as a very important development. However, the fact that the markets had already priced in the “best case scenario” before and after the US elections and the “less than perfect” news on this issue put pressure on digital assets. We continue to keep the strategic reserve issue in our equation as a positive variable for cryptocurrencies in the long run. Considering the recent developments, we maintain our bullish expectation for the medium and long term.
For a detailed review of our twice-daily technical analysis report and the latest developments in digital assets click here.
HIGHLIGHTS OF THE DAY
Important Economic Calender Data
| Time | News | Expectation | Previous |
|---|---|---|---|
| – | Consensus Toronto 2025 Event | – | – |
| – | Starknet (STRK) Eternum Full Launch | – | – |
| – | Helium (HNT) HRP 2025-05 Vote Ends | – | – |
| 13:10 | FOMC Member Jefferson Speaks | – | – |
| 21:40 | FOMC Member Daly Speaks | – | – |
INFORMATION:
*The calendar is based on UTC (Coordinated Universal Time) time zone. The economic calendar content on the relevant page is obtained from reliable news and data providers. The news in the economic calendar content, the date and time of the announcement of the news, possible changes in the previous, expectations and announced figures are made by the data provider institutions. Darkex cannot be held responsible for possible changes that may arise from similar situations.
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