Donald Trump's introduction of a 25% customs duty on automobile imports on April 3 caused unease in the markets! Here are the details.

QCP's latest market report draws attention to the increasing geopolitical tensions following U.S. President Donald Trump's announcement that a 25% customs duty on car imports will come into effect on April 3.

Trump’s Tariffs Shake Global Markets, Crypto Sentiment Remains Weak

The decision targeting the main trading partners of the USA is expected to lead to retaliatory measures and bring more uncertainty to global trade.

Following the announcement, there were significant declines in the Japanese and South Korean stock markets, with automotive shares suffering the most. The escalating trade tensions increased volatility in traditional markets, spilling over into risk assets, including cryptocurrencies.

Despite a few potential catalysts, crypto market sentiment remains subdued. GameStop's unexpected plan to raise $1.3 billion for Bitcoin allocation failed to boost overall market confidence.

The only bright spot was the continued inflow into Bitcoin ETFs, which totaled 944.9 million dollars since March 14. In contrast, Ethereum ETFs saw an outflow of 112.1 million dollars during the same period, highlighting the difference in institutional sentiment between BTC and ETH.

Expiration of Bitcoin Options and Market Outlook

Looking ahead, the record BTC option worth $12.2 billion will expire tomorrow, and the maximum pain price will be $85,000.

As BTC and ETH front-end volatility dropped by 10 points, Bitcoin started to decline from its highest levels on Monday. Open interest continues to decrease, indicating a lack of bullish sentiment in the near term.

Investors are now watching the Personal Consumption Expenditures data (PCE) that will be released tomorrow. QCP analysts believe that the markets are likely to remain cautious until Trump’s next move in the escalating trade war becomes clear, which may limit short-term upward movement.