Financial Markets Show Risk-On Sentiment

Financial markets exhibited a positive sentiment early Monday (East Asia time), influenced by reports suggesting the next installment of Trump tariffs due on April 2 may be more measured than anticipated.

Bitcoin (BTC), the leading digital asset by market capitalization, was trading around $86,500, representing a 2.7% increase over 24 hours. Meanwhile, Solana’s SOL token saw a nearly 6% rise, trading at $138, according to CoinDesk data.

XRP, which focuses on payments, experienced a 2.5% increase, reaching $2.44 and trading above its 50-day simple moving average (SMA) following two consecutive weeks of positive price momentum.

Futures linked to the S&P 500, Dow, and Nasdaq saw increases of over 0.5%, while the VIX index, Wall Street’s fear gauge, dropped 2.5% to 18.88 points. Additionally, markets in China reversed their earlier losses.

Investor sentiment improved following media reports over the weekend indicating that President Donald Trump’s anticipated “reciprocal tariffs” coming on April 2 might be more targeted than the previously feared widespread measures. Some nations will receive exemptions, and it’s likely that current tariffs on steel and other metals won’t accumulate, as reported by Bloomberg.

These tariffs had negatively impacted market sentiment in February, causing Bitcoin to fall nearly 17.6%, dipping below $80K. In the previous week, the Federal Reserve adjusted its inflation forecasts upwards while lowering growth expectations, likely influenced by Trump’s aggressive trade policies.

As the week progresses, key indicators to monitor include Friday’s PCE reading, the Fed’s favored inflation measure, and the testimonies of SEC nominee Paul Atkins and Comptroller of the Currency nominee Jonathan Gould before the Senate Banking Committee on March 27.