Markets React as Trump Escalates Tariff Tensions

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U.S. President Donald Trump’s recent tariff declaration has sent shockwaves through global trade. Starting April 3, a hefty 25% tariff on automobile imports will take effect, coinciding with reciprocal tariffs targeting key trading partners of the U.S. This announcement has ignited fears of renewed trade conflicts, causing a significant downturn in Asian markets, particularly in Japan and South Korea, where stock exchanges closed with substantial losses.

What Impacts Are Emerging in Cryptocurrency?

The ramifications of these developments extend beyond traditional stock markets, spilling over into the cryptocurrency realm. Market participants observed a decline in automobile manufacturers’ stocks while keeping a close eye on subsequent actions from Trump. This environment of uncertainty has led to a weakened outlook for cryptocurrencies.

Are Institutional Preferences Shifting in Crypto?

Despite recent headlines, the cryptocurrency market continues to falter. Notably, GameStop’s $1.3 billion Bitcoin investment failed to sway overall market sentiment. Data from the ETF sector reveals a distinct shift: institutional players are leaning toward Bitcoin while showing hesitance regarding Ethereum, the largest altcoin by market cap.

Recent trends indicate:

  • Bitcoin ETFs have seen a net inflow of $944.9 million since March 14, 2025.
  • Ethereum ETFs, conversely, faced outflows amounting to $112.1 million.
  • This substantial discrepancy highlights a market preference favoring Bitcoin.
  • Ethereum’s value is under pressure due to this trend.

On a brighter note, Ethereum’s blockchain has undergone notable technical advancements. The successful activation of the “Pectra” upgrade on the Hoodi test network may lead to expectations of a bullish trend in the ETH/BTC trading pair.

How Will the $12.2 Billion Options Expiry Affect Markets?

Attention is now on the upcoming expiration of $12.2 billion in Bitcoin options. The maximum pain level is pegged at $85,000, while Bitcoin trends downward from its earlier peak this week. The volatility for both Bitcoin and Ethereum has decreased by 10 points in the short term.

As market prices stabilize, the number of open positions is steadily declining. This situation suggests a struggle for direction in the short term, with optimism remaining low. Many are awaiting crucial PCE inflation data and further announcements from Trump, as the potential for escalating trade wars appears to hinder upward movements in the market.

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.



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