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.