As the US prepares for a potential tariff announcement, QCP Capital examines the current state of the cryptocurrency market.
Current Market Situation
QCP Capital noted that Bitcoin (BTC), Ethereum (ETH), and the S&P 500 recorded their worst quarterly performance in three years, indicating broader market uncertainty. Over $160 billion in market capitalization has been lost since last Friday, signaling a rocky start to Q2. Aggressive broker sales have driven a shift in funding rates from flat to negative.
Impact of Macroeconomic Factors
Macroeconomic data showed higher-than-expected inflation in February, adding further pressure as consumer spending remained weak. Investors are monitoring key upcoming catalysts, amid recent consumer confidence lows and stock market declines this week.
Expectations Before Tariff Announcement
One of the most anticipated events is US President Donald Trump's tariff announcement, which could enhance recession fears. QCP Capital warns that such measures might further depress risk assets. However, a softer approach could temporarily stabilize markets.
QCP Capital remains cautious despite April's historically strong performance for cryptocurrencies, due to ongoing macroeconomic uncertainties and regulatory risks.
