Market sentiment remains fragile as global trade tensions escalate following the entry into force of new 25% tariffs on steel and aluminum imports from the United States today.
Market Tensions Rising as US and EU Escalate Trade War
In response, the European Union has announced retaliatory measures and plans to impose tariffs on €26 billion ($22 billion) worth of US goods starting next month.
The VIX index, a key measure of market volatility, rose to 28 before settling at 26.6. Meanwhile, the Cboe VIX futures curve inverted, signaling that markets may be nearing a bottom.
Investors are also closely watching the upcoming Consumer Price Index (CPI) report, which could significantly impact Federal Reserve interest rate expectations.
Markets are currently predicting the Fed will cut interest rates four times this year, the exact opposite of the January forecast of a single rate cut.
Crypto Market Faces SEC Delays and ETF Exits
In the cryptocurrency sector, the U.S. Securities and Exchange Commission (SEC) has postponed its decision on spot XRP, SOL, LTC, ADA, and DOGE ETF applications until May.
Additionally, the SEC has scheduled a high-risk crypto regulation roundtable for March 21, signaling that regulatory scrutiny will continue.
Meanwhile, Bitcoin ETFs recorded net outflows of $153.87 million, driven in part by the Grayscale Bitcoin Trust (GBTC) selling 641 BTC. The data suggests that investors remain cautious amid macroeconomic uncertainties.
*This is not investment advice.
