Crypto Order Sparks National Digital Asset Focus

A newly signed executive order aims to build a national digital asset stockpile, highlighting the strategic potential of blockchain. DeFi Technologies Inc. (US: DEFTF & CAD: DEFI.NE) stands at the forefront by offering regulated exchange traded products that simplify digital asset access. As the U.S. takes strides in crypto policy, discover how DeFi’s approach may align with this emerging infrastructure.

Explore Crypto’s Next Chapter

Market Recap & Trading Analysis for February 4, 2025

Yesterday market was characterized by volatility as major indices swung between gains and losses. Trade war concerns, earnings reports, and a weak USD drove the session. Crude oil declined 2%, while growth sectors like solar and software outperformed.

Key Events to Watch This Week:

• Earnings Reports: DIS, UBER, ORLY, F, SWKS expected to be key catalysts.

• Macroeconomic Data: ADP Employment, ISM Services, Crude Oil Inventories, Fed Speakers.

• Trump Stance Forecast: Continued AI/tech sector support, energy policy speculation, and crypto deregulation.

• Focus on AI-driven stocks (NVDA, AVGO, PLTR) for upside momentum.

• Trade energy sector strength (PSX, XOM) as geopolitical tensions rise.

• Capitalize on crypto optimism with DOGE, BTC, and ETH ahead of regulatory changes.

• Avoid healthcare and China-related sectors due to weak sentiment.

🔴 Key Trump-Related Market Impact 🔴

1. USAID Shutdown & Administrative Leave for Staff
   Market Impact: Bearish for international aid organizations, NGOs, and emerging markets.
   Potential Sectors Affected: Global NGOs, humanitarian groups, international development firms.
   Trade Impact: Bearish sentiment for any firms relying on USAID funding.

2. Trump’s Economic Policies & Focus on Eliminating Wasteful Government Spending
   Market Impact: Bullish for defense, infrastructure, and domestic manufacturing.
   Potential Sectors Affected: Aerospace & Defense ($LMT, $RTX), AI & Automation ($NVDA, $TSLA), Domestic Infrastructure ($CAT, $DE).
   Trade Impact: Potential long-term bullish trend in automation and defense spending.

3. Geopolitical Risks – Trump’s Stance on Middle East (Gaza Strip & Iran)
   Market Impact: Bullish for defense stocks, bearish for oil if tensions escalate.
   Potential Sectors Affected: Energy ($XOM, $CVX), Defense ($NOC, $GD), Cybersecurity ($CRWD, $PANW).
   Trade Impact: Potential oil volatility with an upward trend in defense stocks.

4. SEC Cutting Crypto Enforcement – Positive for Bitcoin & Altcoins
   Market Impact: Extremely Bullish for Bitcoin and crypto-related stocks.
   Potential Sectors Affected: Crypto miners ($RIOT, $MARA), Blockchain firms ($COIN, $HUT), Payment Processors ($SQ, $PYPL).
   Trade Impact: Bitcoin price expected to surge in response to reduced regulation pressure.

5. USPS Banning Packages from China & Hong Kong
   Market Impact: Bearish for logistics & e-commerce firms reliant on Chinese imports.
   Potential Sectors Affected: Retail ($AMZN, $BABA), Logistics ($UPS, $FDX), Semiconductor Supply Chain ($TSM, $QCOM).
   Trade Impact: Disruption in the supply chain; bearish for companies dependent on Chinese imports.

Summary of Key Market Developments

1. Equinor (EQNR) Strong Earnings & Dividend Increase

   • Raised dividend by 5.7% to $0.37 per share.

   • Strong cash flow expectations, targeting $23 billion for 2025-2027.

   • Anticipated growth in oil & gas production by 10% through 2027.

   • Positive sentiment towards energy stocks amid the European energy crisis.

2. US-China Trade Tensions Escalating

   • The US Postal Service suspends incoming parcels from China and Hong Kong.

   • Chinese e-commerce stocks (JD -5%, BABA -2%) hit hard in Hong Kong trading.

   • The yuan declines while the Hang Seng index drops -1.3%.

   • This news negatively impacts Chinese tech stocks but may provide short-term volatility trading opportunities.

3. Gold Hits a New All-Time High ($2,854)

   • Rising demand amid geopolitical tensions and inflation fears.

   • Investors seeking safety amid uncertainty could push gold higher.

   • Gold miners and ETFs (GDX, GLD) to benefit from the strong trend.

4. Trump’s Policy Announcements Impact Markets

   • Calls to abolish the IRS, triggering uncertainty around tax policies.

   • Statements about Gaza's future, US-Israel relations, and Middle East involvement contribute to geopolitical risks.

   • These developments may create volatility in defense stocks and commodities.

5. Interest Rate Outlook and Economic Indicators

   • Fed Vice Chair Jefferson: No hurry for rate cuts but expects gradual decreases.

   • US labor market remains solid, limiting expectations of aggressive Fed easing.

   • Treasury yields remain stable, with focus on economic data releases this week.

Key Market Themes to Watch

1. Earnings Reports & Guidance:

   • Equinor (EQNR) leading energy sector sentiment.

   • Strong results from InnovAge (INNV) and CVRx (CVRX) in healthcare.

   • Weak results from JD.com (JD) and GH Research (GHRS) impacting tech & biotech.

2. Interest Rates & Economic Data:

   • Fed’s Philip Jefferson’s speech indicating a gradual approach to rate cuts.

   • Mortgage applications, trade data, and ISM services index as key indicators to watch.

3. Geopolitical Developments:

   • US-China tensions, including trade restrictions.

   • Trump’s policy stance on the Middle East and taxation.

4. Crypto Sentiment:

   • Bitcoin rallying on expectations of policy shifts.

   • SEC’s potential pullback from enforcement aiding sentiment.

5. Key Risks to Watch Tomorrow:

   • Tariff Impacts on Markets – Trump-Xi negotiations.

   • AI & Crypto Regulation Shifts – SEC downsizing its crypto unit.

   • Interest Rate Implications – $9.2T US debt refinancing in 2025.

   • Earnings Reports: DIS, UBER, ORLY, SWKS.

Final STOCK Recommendations

Cryptocurrency Market Analysis & Trade Recommendations

Sentiment Analysis:

• Bitcoin (BTC): Slightly bearish sentiment (20.4) based on market trends, but with potential support due to ongoing institutional interest.

• Ethereum (ETH): Slightly bearish sentiment (28.5), but price has been stabilizing.

• Solana (SOL): Bearish sentiment (19.4) with minor pullbacks.

• XRP (XRP): Very bearish (19.9), showing downward pressure.

• Calicoin (CALICOIN): Trending downward, consolidating near $0.017 but with whale interest.

• Fartcoin (FARTCOIN): Large whale activity indicates speculative trading.

Key Trends:

• Whale accumulation in Calicoin, OmegaX, Fartcoin, and Enron, suggesting strong buy activity in these assets.

• Regulatory news (SEC scaling back enforcement) might lead to short-term market stability.

• Congressional discussions on Bitcoin reserves may provide long-term bullish catalysts.

• FTX repayment news expected to inject liquidity into the market.

CRYPTO Market Outlook Day Trade Bias - Strategy

• Outlook: Slightly bearish overall, but BTC and ETH have potential for stabilization and reversal.

• Strategy:

  • Short SOL and XRP for short-term day trades premarket.

  • Buy ETH and BTC on dips for a medium-term rally.

  • Monitor whale movements in smaller-cap coins like Calicoin for potential breakouts.

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