QCP Capital, a Singapore-based crypto trading firm, in a latest market analysis noted that this Monday has set the tone for the week, following recent market volatility driven by DeepSeek’s actions and tariffs.
This time, it was President Trump’s announcement of a 25% tariff on steel and aluminum that sent ripples through the markets, creating a brief period of uncertainty. The move came as traders were already on edge, awaiting Jerome Powell’s testimony and the release of the highly anticipated Consumer Price Index (CPI) data
Tariff Concerns and Potential Sanctions on Japan Fuel Market Uncertainty
Commodities held steady, while Asian stocks saw a small decline. Meanwhile, Bitcoin briefly fell to $95K before making a quick rebound. QCP highlighted that this move seems driven more by market sentiment rather than any real shift in risk appetite. With Bitcoin’s volatility now favoring put options until April, thsi signals that there’s a lack of bullish catalysts in the market.
QCP Capital traders pointed out that with Mexico and Canada being among the top three suppliers of steel and aluminum to the U.S., the new tariffs have raised concerns about the recent delay and could spark fresh trade tensions. Adding to this, Trump’s comments about potential sanctions on Japan after the U.S. blocked Nippon Steel’s attempt to buy U.S. Steel, have added more uncertainty to the situation, leaving markets uneasy.
Tariffs create economic uncertainty, which results in investros moving away from riskier assets like crypto. Some traders predict ether (ETH) could face more losses, as the bitcoin-ether ratio drops and investors favor BTC. This could also hurt related assets like dogecoin (DOGE) and Ethereum-based DeFi tokens.
More Volatility Ahead?
Furthermore, it highlighted that a feedback loop is starting to form, as President Donald Trump, known for his sensitivity to market reactions, now faces a market that’s questioning his decisions. This could push him to act more boldly, adding to the market volatility.
This growing uncertainty, along with Bitcoin’s volatility and market reactions, suggests that traders need to be prepared for more fluctuations ahead. The next few weeks could bring key events that will influence both global markets and crypto assets. Besides, as inflation concerns grow, investors are anticipating only one interest rate cut from the Federal Reserve this year, casting a gloomy outlook for risk assets like crypto.
