Asia Colour - 10 Apr 25
1/ If “Make America Wealthy Again” were a stage production, last night was its dramatic crescendo. President Trump paused planned tariff hikes for 90 days, while introducing a blanket 10% tariff on all countries except China. Markets loved it — the S&P
2/ But while Trump extended an olive branch to the rest of the world, he doubled down on China. Tariffs on Chinese imports were hiked to 125%, with Trump citing Beijing’s “lack of respect for world markets.” In response, the Chinese Yuan tumbled to an 18-year low at 7.3498 — a
3/ Markets are now on edge, bracing for Beijing’s next move. If China retaliates aggressively, this euphoric rally could quickly unravel into a classic bull trap. For now, the policy pivot has soothed some nerves, driving short-end crypto vols lower — but beneath the surface,
4/ On our desk, we continue to see topside selling in $BTC options for May and June — a sign that market makers may be using this rally to offload unwanted exposure. While spot prices are higher, positioning suggests the market remains cautious about how sustainable this move
5/ That said, longer-term conviction hasn’t disappeared. The purchase of December $BTC $100K calls signals that some investors still see potential for Bitcoin to retest the $100K milestone later this year — assuming markets can navigate through the near-term volatility.
6/ The next catalyst is just around the corner: tonight’s CPI print. A softer number would help extend this rally, offsetting some of the inflationary pressures from Trump’s tariff blitz. But a hot print? That could send risk assets right back into turmoil.
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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