By Angelica Jones The cryptocurrency market continues to slide as investors brace for the impact of President Donald Trump’s reciprocal tariffs, set to go into effect on April 2, coupled with...
By Angelica Jones
The cryptocurrency market continues to slide as investors brace for the impact of President Donald Trump’s reciprocal tariffs, set to go into effect on April 2, coupled with key macroeconomic data expected later on Friday.
Bitcoin (BTC) has experienced a 2.5% drop in the last 24 hours, a relatively mild decline compared to the almost 6% slide in ether (ETH), 5.5% in XRP, and 7% in dogecoin (DOGE). The broader CoinDesk 20 Index (CD20) also dropped by 4.65%, while gold reached new highs.
The notable increase in exposure to gold has been beneficial for tokens backed by the precious metal, with CoinDesk Data’s latest stablecoin report revealing a climb to a $1.4 billion market capitalization in March.
It’s evident that traders are taking steps to reduce risk exposure ahead of the release of the U.S. personal consumption expenditure (PCE) report. This data could influence Federal Reserve interest rate decisions and impact risk appetite moving forward.
Bitcoin traders are also looking towards a record-breaking $12.2 billion in BTC options set to expire on Deribit, with a max pain point at $85,000. Despite this, implied volatility remains low as the expiry is not expected to significantly impact the market.
As the trend of derisking gains momentum, spot bitcoin exchange-traded funds (ETFs) have seen consistent inflows since mid-March, adding nearly $1 billion over the past two weeks. In contrast, spot ether ETF outflows have remained consistent, with around $115 million exiting these funds during the same period.
Looking ahead, money managers are anticipated to continue reducing risk exposure, prompting Goldman Sachs to revise its gold price target upwards for the year to $3,300 per troy ounce, with the potential to reach $4,500 in an extreme scenario.
What to Watch:
Crypto:
April 1: Metaplanet (3350) 10-for-1 stock split becomes effective.
Macro:
March 28, 8:00 a.m.: The Brazilian Institute of Geography and Statistics (IBGE) releases February unemployment rate data.
Unemployment Rate Est. 6.8% vs. Prev. 6.5%
March 28, 8:00 a.m.: Mexico’s National Institute of Statistics and Geography releases February unemployment rate data.
Unemployment Rate Est. 2.6% vs. Prev. 2.7%
March 28, 8:30 a.m.: Statistics Canada releases January GDP data.
GDP MoM Est. 0.3% vs. Prev. 0.2%
March 28, 8:30 a.m.: The U.S. Bureau of Economic Analysis releases February consumer income and expenditure data.
Stay alert for more updates!
