Markets took a hit Thursday after President Donald Trump threatened tougher tariffs on Canada and the EU, warning that their potential collaboration could hurt the U.S. economy. Cryptos like Dogecoin (DOGE), Ether (ETH), and XRP (XRP) dropped more than 5% in early Asian hours as traders locked in profits from earlier rallies.
On Wednesday, Trump signed an order imposing a 25% tariff on auto imports and warned of more actions if the EU and Canada retaliate. This intensifies trade tensions, especially with reciprocal tariffs set to start on April 2.
Attention Shifts To US PCE Data
All eyes are now on the U.S. personal consumption expenditure (PCE) report set to drop later today, which could move the market further.
Major crypto coins saw an average drop of 4.5%, with DOGE leading the decline at 7%. The only exception was Toncoin (TON), which rose 5% in the last 24 hours. Meanwhile, gold hit new highs, soaring above $3,109 in the Asian morning hours, continuing its strong rally since March.
Option Expiry Looming
Over $12.2 billion in Bitcoin options are about to expire, and market sentiment could be affected by the upcoming release of the U.S. personal consumption expenditure (PCE) data. With ongoing trade tensions and shifts in global monetary policies, Bitcoin could face reduced demand as a safe-haven asset, adding concerns to an already volatile market.
Bitcoin Could Face Reduced Demand
Traders from QCP Capital mentioned that Bitcoin’s price is moving sideways, and there is little optimism in the market right now, as shown by decreasing trading interest. They believe that any short-term price increase will be limited, especially with the upcoming release of the PCE Index data. Markets are waiting to see how President Trump will respond in the ongoing trade conflict, which is adding uncertainty.
As the U.S. economy faces more uncertainty from trade tensions and rising inflation, investors may shy away from Bitcoin and seek more stable assets to protect against inflation. This shift could impact Bitcoin’s price and its status as a safe-haven investment.
