Altcoins Decline as Investors Shift to Gold Amid Trump Tariffs
The crypto market is experiencing a downturn due to anticipated tariffs from the Trump administration and upcoming macroeconomic data. Key points include:
- Bitcoin has decreased by 2.5% over the past 24 hours, while ether, XRP, and dogecoin faced larger declines of 6%, 5.5%, and 7%, respectively.
- The CoinDesk 20 Index fell by 4.65%, contrasting with gold prices hitting new highs.
- Tokenized gold reached a market capitalization of $1.4 billion in March.
- Traders are reducing risk ahead of the U.S. personal consumption expenditure (PCE) report, which could impact Federal Reserve interest rate decisions.
- A record $12.2 billion in Bitcoin options is set to expire today, but low implied volatility suggests minimal market movement.
- Spot Bitcoin ETFs have seen inflows nearing $1 billion since mid-March, while ether ETFs experienced outflows of about $115 million during the same timeframe.
- Goldman Sachs raised its gold price target for the year to $3,300 per ounce, with a potential rise to $4,500 under extreme conditions.
Market Movements
- BTC is down 2.34% at $85,266.30.
- ETH is down 4.77% at $1,911.49.
- CoinDesk 20 is down 4.37% at 2,618.54.
- Gold is up 1.65% at $3,110.60/oz.
Upcoming Economic Data
- April 2: Trump's tariffs on automobiles take effect.
- March 28: U.S. PCE data will be released, which includes personal income and spending metrics.
Derivatives Positioning
- Open interest across all instruments declined to $105 billion.
- Total liquidations in the last 24 hours reached $362 million, primarily from long positions.
Bitcoin dominance stands at 62.04%, indicating continued pressure on altcoins. The market remains cautious as traders monitor global economic indicators and potential regulatory changes.