Asia Colour - 4 Apr 25
1/ Liberation Day or Liquidation Day?
President Trump reignites global trade tensions with a sweeping 10% tariff on all U.S. imports. Markets react swiftly — and painfully.
2/ $BTC drops from $88.5K to $81.2K, triggering over $221M in long liquidations. The move erased prior gains and hit $BTC harder than $ETH.
U.S. equities also sold off. Nasdaq futures fell 4.28%, while consumer names with Asia-linked supply chains saw double-digit losses.
3/ With the tariff shock largely priced in, the focus now shifts to tonight’s U.S. non-farm payrolls.
A softer print could be the catalyst for a Fed pivot. Markets are currently pricing in four 25bps rate cuts this year.
4/ On the options desk, we're seeing continued demand for downside protection. Short-term vols remain elevated, reflecting cautious sentiment across crypto and traditional risk assets.
5/ However, positioning is now light. Risk assets look oversold.
Conditions may be aligning for a tactical bounce — but the path forward depends heavily on incoming macro data.
Read more: www.qcpgroup.com/insights/asia...
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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