QCP: Current market volatility is driven by sentiment, and Bitcoin's volatility is now leaning towards put options

ChainCatcher news, according to QCP's daily market observation, following the DeepSeek action two weeks ago and the tariff-driven volatility last week. This time, Trump announced a 25% tariff on steel and aluminum, briefly disturbing the market ahead of Powell's testimony and the release of the Consumer Price Index (CPI) data.

As Mexico and Canada are among the top three suppliers to the U.S., these tariffs cast doubt on last week's temporary delay and may reignite trade tensions. Adding to the uncertainty are Trump's remarks about possible sanctions against Japan—an important U.S. ally—following the White House's move to block Japanese steel acquisitions of U.S. steel. Commodity prices remained largely unchanged, while Asian stock markets fell, and Bitcoin briefly dipped to $95,000 before rebounding—indicating that this is a sentiment-driven market fluctuation rather than a fundamental change in risk appetite.

Bitcoin's volatility is now skewed towards put options until April, reflecting a lack of catalysts for upward movement. A feedback loop is emerging—President Trump's sensitivity to market reactions is facing increasing skepticism from the market. This may further encourage him, increasing market volatility.