21Shares Maintains Positive Long-Term Outlook for Crypto Despite Short-Term Volatility
Market reaction follows U.S. tariffs announcement:
- President Trump announced 25% tariffs on Canada and Mexico, causing a drop in both traditional equities and crypto.
- The overall crypto market cap decreased by 11% to $2.82 trillion.
- Bitcoin is trading in the low $80,000s, down from recent highs of $90,000.
Trading insights reveal:
- Strong demand for high-leverage calls: 49.4% of BTC premiums and 45.5% of ETH premiums are calls bought.
- BTC’s 7-day implied volatility increased from 47% to 70%, while 30-day volatility rose from 47% to 55%.
- Concerns about inflation and economic uncertainty contributing to market selloff.
Future outlook includes:
- CME Solana futures set to begin trading on March 17, potentially accelerating SEC approval for Solana spot ETFs.
- Increased concentration in altcoin trading: Top 10 altcoins accounted for 77% of volume on U.S. platforms, up from 58% a year ago.
- Potential altcoin season remains uncertain amid current volatility.
Overall, the market is experiencing heightened volatility with no clear pattern breaking. Investors remain cautious amidst ongoing uncertainties.