🌞July 8 Market Analysis
Good morning, everyone. The market showed new movements last night.
Trump announced an extension of the previously scheduled tax increase to August 1, and plans to impose a 25% tariff on Japan and South Korea, as well as a 25% to 40% tariff on South Africa and some Southeast Asian countries. Currently, only the US-European trade negotiations have made positive progress.
After the news was released, US stocks fell by about 1%, and US Treasury prices declined, particularly with long bonds showing weak performance.
A notable change is that in the past, rising US Treasury yields attracted capital inflows, which was bearish for crypto assets. However, currently, higher yields have actually reduced the attractiveness of US Treasuries, leading some funds to shift towards Asian stock markets and Bitcoin.
In terms of ETFs: Capital continues to flow in, with the last three days seeing inflows of 400 million, 600 million, and 50 million dollars respectively. At the same time, Coinbase saw an outflow of 10,000 BTC yesterday.
Overall, the market is brewing. Once Trump's tariff policy is implemented, it could become an important turning point for the market.
The risk in the EU has been largely alleviated, and the focus will be on the specific reactions from Japan and South Korea moving forward. Before the final results become clear, large funds may remain cautious in the short term, and the market does not rule out the possibility of a final wave of "washing out."
Operational advice:
For holders: Be patient and avoid being shaken out.
If a sudden drop breaks through the 100,000 dollar mark, consider decisively increasing positions to buy the dip.
The market could reverse at any time; strategy is more important than emotions.
