As the market cycle unfolds, altcoins are trading at critical levels. In today’s update, we’ll take a closer look at the broader market landscape to assess whether momentum is shifting and what that could mean for the days ahead.

Additionally, we’ll analyze key macroeconomic factors to offer a well-rounded outlook on what’s next for altcoins.

Here’s what we’ll cover today:

Let’s dive in!

US stocks surged on Tuesday, buoyed by improved prospects for a US-EU trade agreement after President Trump delayed the implementation of 50% tariffs on imports from the European Union. The tech-heavy Nasdaq outperformed as investors rotated back into growth stocks, with consumer confidence also benefiting from a rebound, which rose in May following five consecutive months of decline, coinciding with the administration's easing of its toughest tariff threats.

The risk-on sentiment marks a sharp reversal from Friday's selloff, when escalating trade rhetoric and fiscal concerns weighed heavily on markets. The EU on Monday agreed to speed up tariff talks with the US, easing concerns about a trans-Atlantic trade war, providing critical breathing room for global supply chains and multinational corporations.

Perhaps the most striking development is the unprecedented accumulation of cash on the sidelines. Our first chart reveals money market fund assets have reached approximately $7 trillion, representing a massive wall of potential liquidity waiting to be deployed. This cash buildup, circled in pink at the chart's right edge, suggests either extreme risk aversion or tactical positioning ahead of major market moves.

This liquidity overhang presents both opportunity and risk. While it provides potential fuel for further market rallies, it also indicates institutional investors remain cautious about committing capital at current valuations. The concentration of this cash in money market funds earning 5%+ yields creates a meaningful hurdle rate for risk assets.

In a move that crystallizes the current crypto-corporate adoption trend, Trump Media and Technology Group will raise about $2.5 billion to invest in bitcoin, U.S. President Donald Trump's social media company said on Tuesday, as it looks to diversify its revenue.

Our second chart illustrates the dramatic scaling of Trump Media's liquid assets, from just $1,000 at end-2022 to $759 million in Q1 2025, with the planned $2.5 billion bitcoin purchase representing a quantum leap in corporate crypto adoption.

The third chart reveals a troubling pattern across developed market sovereign debt. UK 10-year gilts, German bunds, US Treasuries, and French OATs have all experienced coordinated yield spikes. The synchronized nature of this bond selloff suggests investors are repricing sovereign credit risk globally, likely driven by deteriorating fiscal positions and persistent inflation pressures.

Trump's newly advanced tax bill, which cleared the House last week and is now headed to the Senate, is projected to add $4 trillion to US national debt over the next decade, exacerbating these concerns.

We remain tactically bullish on trade resolution optimism, while maintaining hedges against potential fiscal crisis scenarios and staying prepared for heightened volatility around key data releases and geopolitical developments.

Now let’s dive into the part you’re really here for: the charts, key levels, trade scenarios and what’s next for Bitcoin and Altcoins. 🔥 

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