Market Analysis. February 03, 2025 Weekly Outlook.

Let’s start with a brief recap of the past few days. You’ve likely noticed it: an unprecedented liquidation cascade in the history of the crypto market, reportedly orchestrated—according to circulating social media information—jointly by Binance, Coinbase, and the market-making firm Wintermute. Naturally, this took place over the weekend, when market volumes are low. This event itself followed growing uncertainty and market anxiety over Trump’s trade hostilities, specifically the implementation of his notorious tariffs.

Monday was marked by a meeting between the Trump administration and Canadian/Mexican officials, which, as we anticipated a few hours prior, resulted in agreements—including the suspension of tariffs on the affected countries. The market reacted positively, with Bitcoin and the SPX fully recovering from their weekend declines. Gold, capitalizing on the overall risk sentiment, surged to a new all-time high (ATH), significantly outperforming other assets and currently flirting with $2,800 per ounce and beyond.

Surprise this morning. China responded preemptively to U.S. threats, demonstrating that, for Beijing, the best defense is a strong offense. This sent a chill through global markets, triggering a sharp and brutal sell-off. While not yet alarming, we’ll closely monitor the New York session and the Trump administration’s response.

And what about Europe? According to the new White House resident, they’re “out of line.” European leaders, however, have declared themselves ready to fight back. The perfect setting for trading the financial markets, isn’t it?