On March 27, QCP released its daily market observation, stating, "Trump escalated tensions by announcing a 25% tariff on car imports, planned to take effect from April 3, while implementing retaliatory tariffs on the United States' largest trading partners. Any further retaliation from these target economies could inject new uncertainty into an already volatile global trade environment. As anticipated, Japanese and Korean stock markets generally declined, with automotive stocks being the hardest hit.
In the crypto market, despite some notable catalysts, sentiment remains low. GameStop unexpectedly proposed raising $1.3 billion for BTC allocation but failed to boost overall market sentiment. The only highlight was the continued fund inflow into Bitcoin ETFs, totaling $944.9 million since the March 14 expiration. In contrast, ETH ETF experienced a $112.1 million fund outflow during the same period, demonstrating the divergence of institutional confidence in the market. On-chain developments offer a glimmer of hope for ETH.
Looking ahead to tomorrow's options expiration, BTC options with a notional value of $12.2 billion will expire at the maximum pain point of $85,000. BTC has already started sliding from Monday's highs, with front-end volatility for both BTC and ETH declining by 10 volatility points. Spot trading remains flat, and open interest continues to decline, indicating a lack of optimism in the market recently. With PCE index data set to be released tomorrow, we believe upside potential remains limited in the short term, and the market will await Trump's next move in this escalating trade war."
