The introduction of excessively aggressive tariffs by U.S. President Donald Trump could exacerbate negative market sentiment and trigger further declines in risk assets, QCP Capital warned.

Asia Colour – 1 Apr 25

1/ It’s no April Fool’s joke. $BTC, $ETH & the S&P 500 just posted their worst quarterly performance in 3 years. Over $160B in crypto market cap was wiped since Friday, as bullish momentum fades fast.
— QCP (@QCPgroup) April 1, 2025

Experts noted that April 2 marks “Liberation Day” from Donald Trump, when the politician has promised to unveil a large-scale package of “reciprocal tariffs.”

Bitcoin, Ethereum, and the S&P 500 have posted their worst quarterly performance in the past three years. Since March 29, the digital asset market has lost over $160 billion in capitalization.

With consumer confidence at a 12-year low and stock markets already shaken by a 4-5% weekly decline, the timing for tightening trade conditions is extremely unfavorable.

“However, political theater often leaves room for adjustments. A softer-than-expected implementation of the measures could give markets a brief reprieve,” specialists suggested.

In options trading, buyers have focused on strike prices between $85,000 and $90,000 while selling downside risk (strike price at $75,000), indicating hopes for a stronger start to the second quarter.

Experts reminded that April has historically been a strong month for cryptocurrencies. However, they maintain a cautious stance.

“The road ahead is likely to be characterized by sideways movement as investors digest multiple macro risks and wait for a clearer direction,” they concluded.

Earlier, Matt Crosby of Bitcoin Magazine Pro predicted a renewed Bitcoin rally, citing a gradual shift in sentiment, the resilience of long-term holders, and the structural strength of the market.