Global trade dynamics experienced a jolt following U.S. President Donald Trump’s unexpected announcement. Effective April 3, a 25% tariff on automobile imports will be imposed, coinciding with the long-anticipated reciprocal tariffs directed at America’s major trading partners. This move may trigger a new wave of uncertainty in already fragile global markets. Indeed, Asian markets reacted sharply, with Japan and South Korea’s stock exchanges closing with significant losses. As automobile manufacturers’ stocks took a hit, market participants are closely watching Trump’s next steps. The rekindling of global trade wars is impacting not just stock markets, but also indirectly affecting the cryptocurrency market.
Institutional Interest Dwindles: Bitcoin and Ethereum Diverge
Despite the sensational developments recently, the cryptocurrency market still exhibits a weak outlook. GameStop’s $1.3 billion BTC investment effort failed to alter the overall market sentiment. Data from the ETF sector indicates that institutional investors are favoring Bitcoin $87,377, showing reluctance towards Ethereum
$2,026, the largest altcoin by market capitalization.

Since March 14, 2025, Bitcoin ETFs have recorded a net inflow of $944.9 million, while Ethereum ETFs experienced an outflow of $112.1 million during the same period. This significant difference demonstrates a clear preference in the market between the two leading cryptocurrencies. The shift of institutional interest towards Bitcoin continues to pressure Ethereum’s value.
Conversely, some technical developments within Ethereum’s blockchain promise potential. The successful activation of the “Pectra” upgrade on the Hoodi test network paves the way for its transition to the mainnet in the second quarter. This could heighten expectations for a bullish correction in the ETH/BTC pair among investors.
Eyes on the $12.2 Billion Expiry
The $12.2 billion Bitcoin options expiring tomorrow have become the focal point of market activity. The maximum pain level is set at $85,000, while Bitcoin is trending downward from its peak earlier in the week. Both Bitcoin and Ethereum have seen a 10-point decrease in short-term volatility.
As spot prices stabilize, the amount of open positions continues to dwindle. This scenario indicates that the market struggles to find direction in the short term, with optimism remaining notably weak. Investors are awaiting the upcoming PCE inflation data and Trump’s new announcements. The possibility of an escalation in trade wars seems to be curtailing potential upward movements for now.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.