The introduction of excessively aggressive tariffs by U.S. President Donald Trump could exacerbate negative market sentiment and trigger further declines in risk assets, QCP Capital has warned.
Asia Colour — 1 Apr 25
1/ It’s no April Fool’s joke. $BTC, $ETH & the S&P 500 just posted their worst quarterly performance in 3 years. Over $160B in crypto market cap was wiped since Friday, as bullish momentum fades fast.
— QCP (@QCPgroup) April 1, 2025
Experts noted that April 2 is marked as ‘Liberation Day’ from Donald Trump, when the politician is expected to present a comprehensive package of ‘reciprocal tariffs.’
Bitcoin, Ethereum, and the S&P 500 have recorded their worst quarterly performance in the past three years. Since March 29, the digital asset market has lost over $160 billion in capitalization.
With consumer confidence at a 12-year low and stock markets already shaken by a 4-5% weekly drop, the timing for tightening trade conditions is highly inopportune.
“However, political theatre often leaves room for adjustment. A softer-than-expected implementation of measures could offer markets a brief respite,” the specialists suggested.
In options, buyers focused on strikes of $85,000-90,000 while selling downside risk (strike price — $75,000), indicating hopes for a more confident start to the second quarter.
Experts pointed out that April is historically a strong month for cryptocurrencies. Nonetheless, they maintain a cautious stance.
“The further path is likely to be defined by sideways movement as investors digest a multitude of macro risks and await clearer direction,” the specialists concluded.
Back in March, Matt Crosby from Bitcoin Magazine Pro predicted a resumption of the bitcoin rally, citing a gradual shift in sentiment, the steadfastness of hodlers, and the “structural strength of the market.”